Enterprise Financial Services Corp Reports Fourth Quarter and Full Year 2025 Results

Business Wire on February 5, 2026

Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am proud of how we ended 2025, which was another successful year for the Company. The completion of the branch acquisition in Arizona and Kansas during the quarter has enhanced our funding profile and strengthened our position in two important markets.”

Lally added, “We reported diluted earnings per share of $1.45 for the fourth quarter and $5.31 for the full year 2025. Our earnings resulted in a 1.27% ROAA and a 14.02% ROATCE¹for the fourth quarter. For the full year, we had a 1.24% ROAA and a 13.34% ROATCE. We leveraged our capital position in the year to execute on the branch acquisition, increase our common stock dividends 15% and repurchase $14.1 million of common stock, while still increasing tangible book value by 11% in 2025. This represents the 14th consecutive year that we have increased our tangible book value per share, with an 11% compound annual growth rate during that period. Similarly, we have increased our common stock dividend for 11 consecutive years with a 17% compound annual growth rate.”

____________________

¹ ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

“I am also pleased that we made significant progress at the end of the year in resolving the large nonperforming credit relationship that has been previously disclosed. As we had expected, we were able to foreclose on the majority of the properties without taking a net loss on the transactions. As we enter a new year, I am confident that we will continue to improve our asset quality metrics and that the investments we have made in our associates and technology, combined with our high customer service levels and a strong balance sheet, will drive financial and operational success in 2026.”

Full-Year Highlights

For 2025, net income was $201.4 million, or $5.31 per diluted share, compared to $185.3 million, or $4.83 per diluted share, in 2024. Pre-provision net revenue (“PPNR”)² for 2025 was $274.7 million, compared to $255.2 million in 2024. The increase in PPNR² in 2025 was primarily due to higher net interest income that benefited from an organic increase in average interest-earning asset balances and liquidity provided through the branch acquisition, and lower rates paid on interest-bearing liabilities. These increases were partially offset by an increase in noninterest expense due to the branch acquisition, merit increases, higher headcount and higher deposit costs from growth in the deposit verticals.

Net interest income of $626.7 million increased $58.6 million over the prior year. NIM increased to 4.21% in 2025, from 4.16% in 2024, primarily due to higher average loan and securities balances, as well as higher yields on the securities portfolio. Average loans and securities increased $472.6 million and $753.8 million, respectively, compared to 2024. While the decline in market interest rates reduced the yield on loans 28 basis points, the yield on securities increased 51 basis points. Net interest income in 2025 also benefited from lower short-term interest rates that decreased deposit interest expense. Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.

Noninterest income was $113.1 million, an increase of $43.4 million from $69.7 million in 2024. Noninterest income in 2025 includes $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event during the third quarter 2025 with respect to a $24.1 million solar tax credit. There is an offsetting amount of $32.1 million in income tax expense related to the solar tax credit recapture.

Noninterest expense was $429.8 million in 2025, a 12% increase from $385.0 million in 2024. The increase was primarily from higher deposit costs due to an increase in average deposit vertical balances, an increase in compensation due an expanded associate base and the onboarding of the associates from the branch acquisition, along with other expenses related to the branch acquisition. The increase was partially offset by a $4.9 million decline in core conversion expenses due to the completion of the core implementation in the fourth quarter 2024. The core efficiency ratio² was 59.3% in 2025, compared to 58.4% in 2024.

Nonperforming assets were 0.95% of total assets at the end of 2025, compared to 0.30% at the end of 2024. Net charge-offs were 0.21% of average loans in 2025, compared to 0.16% in 2024. The allowance for credit losses was 1.19% of total loans at the end of 2025, compared to 1.23% at the end of 2024. Excluding guaranteed portions of loans, the allowance to loans ratio² was 1.29% and 1.34% at the end of 2025 and 2024, respectively. The provision for credit losses was $26.3 million and $21.5 million in 2025 and 2024, respectively.

The Company maintained a strong liquidity position in 2025, with total deposits of $14.6 billion, a loan-to-deposit ratio of 80.8% and cash and investment securities of $4.5 billion as of December 31, 2025. This compares to total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion at the end of 2024. Noninterest-bearing deposits comprise 33.4% of total deposits at December 31, 2025, compared to 34.1% at the end of 2024. Excluding brokered certificates of deposits, core deposits as of December 31, 2025 totaled $13.9 billion, an increase of $1.2 billion from the prior year.

____________________

² PPNR, core efficiency ratio, and allowance to loans ratio excluding guaranteed loans are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Total stockholders’ equity was $2.0 billion and $1.8 billion as of December 31, 2025 and December 31, 2024, respectively. The increase was primarily due to net income of $201.4 million, offset by dividends and $14.1 million of common stock repurchases in 2025. The Company returned $45.1 million, or $1.22 per share, to common stockholders and $3.8 million, or $50.00 per share, to preferred stockholders in 2025.

Fourth Quarter Highlights

Earnings – Net income in the fourth quarter 2025 was $54.8 million, an increase of $9.6 million and $6.0 million compared to the linked and prior year quarters, respectively. Earnings per diluted share was $1.45 for the fourth quarter 2025, compared to $1.19 and $1.28 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share³was $1.36 for the fourth quarter 2025, compared to $1.20 and $1.32 for the linked and prior year quarters, respectively.
PPNR³ – PPNR of $74.8 million in the fourth quarter 2025 increased $9.2 million and $5.4 million from the linked and prior year quarters, respectively. The increases were primarily due to an increase in net interest income from higher average balances in the loan and securities portfolios, partially offset by an increase in noninterest expense.
Net interest income and NIM – Net interest income of $168.2 million for the fourth quarter 2025 increased $9.9 million and $21.8 million from the linked and prior year quarters, respectively. NIM was 4.26% for the fourth quarter 2025, compared to 4.23% and 4.13% for the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income increased due to higher average loan balances, higher average securities balances and yields, and lower short-term interest rates that decreased the rates paid on interest-bearing liabilities.
Noninterest income – Noninterest income of $25.4 million for the fourth quarter 2025 decreased $23.2 million from the linked quarter and increased $4.8 million from the prior year quarter. The decrease from the linked quarter was primarily due to the anticipated insurance proceeds from the tax credit recapture in the linked quarter that did not reoccur. Excluding this item, noninterest income increased $8.9 million from the linked quarter primarily due to an increase in tax credit income as a result of higher volumes and a higher net gain on other real estate owned (“OREO”). Compared to the prior year quarter, the increase was primarily related to a higher net gain on OREO, partially offset by a decrease in tax credit income.
Noninterest expense – Noninterest expense of $114.5 million for the fourth quarter 2025 increased $4.7 million and $15.0 million from the linked and prior year quarters, respectively. The increase from linked and prior year quarters was primarily driven by higher employee compensation and other expenses related to the branch acquisition. Compared to the prior year quarter, the increase was also attributed to higher deposit costs.
Loans – Total loans increased $217.2 million from the linked quarter to $11.8 billion as of December 31, 2025, including $292.0 million from the branch acquisition. Loan growth for the quarter was also impacted by the transfer of $68.1 million in book value loans to OREO. Average loans totaled $11.8 billion for the fourth quarter 2025, compared to $11.5 billion and $11.1 billion for the linked and prior year quarters, respectively.
Asset quality – The allowance for credit losses to loans was 1.19% at December 31, 2025, compared to 1.29% at September 30, 2025 and 1.23% at December 31, 2024. The ratio of nonperforming assets to total assets was 0.95% at December 31, 2025, compared to 0.83% and 0.30% at September 30, 2025 and December 31, 2024, respectively. The provision for credit losses recorded in the fourth quarter 2025 was $9.2 million, compared to $8.4 million and $6.8 million for the linked and prior year quarters, respectively.
Deposits – Total deposits increased $1.0 billion from the linked quarter to $14.6 billion as of December 31, 2025, including $609.5 million from the branch acquisition. Excluding brokered certificates of deposits, deposits increased $1.1 billion from the linked quarter. Average deposits totaled $14.5 billion for the fourth quarter 2025, compared to $13.6 billion and $13.0 billion for the linked and prior year quarters, respectively. At December 31, 2025, noninterest-bearing deposits totaled $4.9 billion, or 33.4% of total deposits, and the loan to deposit ratio was 80.8%.
Capital – Total stockholders’ equity was $2.0 billion and tangible common equity to tangible assets⁴ was 9.07% at December 31, 2025, compared to 9.60% at September 30, 2025. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 11.9% and a total risk-based capital ratio of 13.0% as of December 31, 2025. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.6% and 13.9%, respectively, at December 31, 2025.

The Company’s Board of Directors approved a quarterly dividend of $0.33 per common share, payable on March 31, 2026 to stockholders of record as of March 13, 2026. The Board of Directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) December 15, 2025 to (but excluding) March 15, 2026. The dividend will be payable on March 15, 2026 and will be paid on March 16, 2026 to stockholders of record on February 27, 2026.

____________________

³Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

⁴ Tangible common equity to tangible assets is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis.

	Quarter ended
	December 31, 2025						September 30, 2025						December 31, 2024
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans^{1, 2}		11,794,459		193,587	6.51	%		11,454,183		191,589	6.64	%		11,100,112		187,761	6.73	%
Taxable securities		2,331,562		24,464	4.16			2,100,748		21,705	4.10			1,693,257		15,566	3.66
Non-taxable securities²		1,292,403		12,263	3.76			1,252,557		11,503	3.64			1,054,806		8,713	3.29
Total securities		3,623,965		36,727	4.02			3,353,305		33,208	3.93			2,748,063		24,279	3.51
Interest-earning deposits		552,843		5,436	3.90			328,392		3,638	4.40			474,878		5,612	4.70
Total interest-earning assets		15,971,267		235,750	5.86			15,135,880		228,435	5.99			14,323,053		217,652	6.05
Noninterest-earning assets		1,128,162						1,042,208						986,524
Total assets	$	17,099,429					$	16,178,088					$	15,309,577

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	3,550,349	$	17,236	1.93	%	$	3,298,022	$	17,488	2.10	%	$	3,238,964	$	19,517	2.40	%
Money market accounts		3,948,405		27,611	2.77			3,706,891		28,734	3.08			3,588,326		30,875	3.42
Savings accounts		540,764		168	0.12			532,015		183	0.14			547,176		278	0.20
Certificates of deposit		1,659,905		15,223	3.64			1,609,346		15,210	3.75			1,361,575		14,323	4.18
Total interest-bearing deposits		9,699,423		60,238	2.46			9,146,274		61,615	2.67			8,736,041		64,993	2.96
Subordinated debentures and notes		93,654		1,561	6.61			136,895		2,683	7.78			156,472		2,634	6.70
FHLB advances		11,620		127	4.34			106,130		1,207	4.51			3,370		42	4.96
Securities sold under agreements to repurchase		170,058		1,065	2.48			159,039		1,155	2.88			156,082		1,245	3.17
Other borrowings		97,196		1,108	4.52			56,164		444	3.14			36,201		96	1.05
Total interest-bearing liabilities		10,071,951		64,099	2.52			9,604,502		67,104	2.77			9,088,166		69,010	3.02

Noninterest-bearing liabilities:
Demand deposits		4,837,958						4,458,028						4,222,115
Other liabilities		167,048						151,432						154,787
Total liabilities		15,076,957						14,213,962						13,465,068
Stockholders’ equity		2,022,472						1,964,126						1,844,509
Total liabilities and stockholders’ equity	$	17,099,429					$	16,178,088					$	15,309,577

Total net interest income			$	171,651					$	161,331					$	148,642
Net interest margin					4.26	%					4.23	%					4.13	%

¹ Average balances include nonaccrual loans. Interest income includes loan fees of $1.7 million, $1.9 million, and $2.4 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.
² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $3.5 million, $3.0 million, and $2.3 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Net interest income for the fourth quarter was $168.2 million, an increase of $9.9 million and $21.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $171.7 million, $161.3 million, and $148.6 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to growth in interest-earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and interest-bearing transaction accounts. In the linked quarter, the Company redeemed $63.3 million of subordinated debt at a floating rate of three-month Term SOFR plus a spread of 5.66% that was replaced by a $63.3 million single advance term loan. The term loan is payable in quarterly installments on March 31, June 30, September 30 and December 31 with a final installment due on the five year anniversary of the initial advance date. The interest rate on the term loan is one-month Term SOFR plus 2.50%.

Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.

Interest income for the fourth quarter increased $6.9 million and $16.9 million as compared to the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase of $340.3 million in average loan balances, primarily from the branch acquisition during the quarter, a $270.7 million increase in average securities balance as we deployed liquidity from the branch acquisition into yielding assets, and a nine basis point increase in the yield on securities due to new purchases and reinvestment of cash flows from the runoff of lower yielding investments. Compared to the prior year quarter, interest-earning assets increased $1.6 billion. Continued success in organic and acquired deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.

The average interest rate of new loan originations in the fourth quarter 2025 was 6.75%, a decrease of 23 basis points from the linked quarter. Investment purchases in the fourth quarter 2025 had a weighted average, tax equivalent yield of 4.61%.

Interest expense decreased $3.0 million and $4.9 million in the fourth quarter 2025 as compared to the linked and prior year quarters primarily due to decreased interest paid on interest-bearing deposits. The average cost of interest-bearing deposits was 2.46%, a decrease of 21 and 50 basis points compared to the linked and prior year quarters, respectively. The total cost of deposits, including noninterest-bearing demand accounts, was 1.64% during the fourth quarter 2025, compared to 1.80% and 2.00% in the linked and prior year quarters, respectively.

NIM, on a tax equivalent basis, was 4.26% in the fourth quarter 2025, an increase of three basis points and 13 basis points from the linked and prior year quarters, respectively. Included in net interest income and NIM is the net amortization of purchase accounting premiums and discounts from acquired loan portfolios. The net amount of amortization or accretion each quarter is impacted by repayment patterns on the individual loans with a premium or discount. The net effect of loan purchase accounting amortization did not effect NIM in the fourth quarter, while it reduced NIM two basis points in both the linked and prior year quarters. For the month of December 2025, the loan portfolio yield was 6.53% and the cost of total deposits was 1.59%.

Investments

	At
	December 31, 2025					September 30, 2025					December 31, 2024
($ in thousands)	Carrying Value		Net Unrealized Loss			Carrying Value		Net Unrealized Loss			Carrying Value		Net Unrealized Loss
Available-for-sale (AFS)	$	2,655,035	$	(83,258	)	$	2,351,493	$	(102,269	)	$	1,862,270	$	(163,212	)
Held-to-maturity (HTM)		1,074,957		(35,288	)		1,081,847		(49,656	)		928,935		(70,321	)
Total	$	3,729,992	$	(118,546	)	$	3,433,340	$	(151,925	)	$	2,791,205	$	(233,533	)

Investment securities totaled $3.7 billion at December 31, 2025, an increase of $296.7 million from the linked quarter. Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities⁵ was 8.91% at December 31, 2025, compared to 9.37% at September 30, 2025.

____________________

⁵ Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:

	At
	December 31, 2025
($ in thousands)	Legacy EFSC***		Branch Acquisition***		Consolidated			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
C&I	$	2,521,959	$	84,513	$	2,606,472		$	2,320,868		$	2,316,609		$	2,198,802		$	2,139,032
CRE investor owned		2,702,061		84,078		2,786,139			2,626,657			2,547,859			2,487,375			2,405,356
CRE owner occupied		1,286,900		117,804		1,404,704			1,296,902			1,281,572			1,292,162			1,305,025
SBA loans*		1,262,456		—		1,262,456			1,257,817			1,249,225			1,283,067			1,298,007
Sponsor finance*		694,905		—		694,905			774,142			771,280			784,017			782,722
Life insurance premium finance*		1,187,128		—		1,187,128			1,151,700			1,155,623			1,149,119			1,114,299
Tax credits*		802,818		—		802,818			780,767			708,401			677,434			760,229
Residential real estate		357,616		4,662		362,278			359,315			356,722			357,615			350,640
Construction and land development		633,651		152		633,803			784,218			773,122			800,985			794,240
Consumer**		58,889		746		59,635			230,723			248,427			268,187			270,805
Total loans	$	11,508,383	$	291,955	$	11,800,338		$	11,583,109		$	11,408,840		$	11,298,763		$	11,220,355

Quarterly loan yield						6.51	%		6.64	%		6.64	%		6.57	%		6.73	%

Loans by rate type (to total loans):
Fixed						40	%		41	%		40	%		39	%		40	%
Variable:						60	%		59	%		60	%		61	%		60	%
SOFR						30	%		29	%		29	%		29	%		28	%
Prime						23	%		23	%		24	%		24	%		24	%
Other						7	%		7	%		7	%		8	%		8	%

Variable interest rate loans to total loans, adjusted for interest rate hedges						56	%		55	%		56	%		56	%		55	%

*Specialty loan category
**Certain loans were reclassified from Consumer and into other categories in the fourth quarter of 2025. Prior period amounts were not adjusted.
***Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ loan portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition loan portfolio.

Loans totaled $11.8 billion at December 31, 2025, increasing $217.2 million from the linked quarter. The increase was driven primarily by $292.0 million of loans acquired in the branch acquisition, partially offset by the $68.1 million book value of loans transferred to OREO in the quarter. Average line utilization was approximately 44% for the quarter ended December 31, 2025, compared to 45% and 42% for the linked and prior year quarters, respectively.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:

	At
($ in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Nonperforming loans*	$	82,809		$	127,878		$	105,807		$	109,882		$	42,687
Other¹		81,544			7,821			8,221			3,271			3,955
Nonperforming assets*	$	164,353		$	135,699		$	114,028		$	113,153		$	46,642

Nonperforming loans to total loans		0.70	%		1.10	%		0.93	%		0.97	%		0.38	%
Nonperforming assets to total assets		0.95	%		0.83	%		0.71	%		0.72	%		0.30	%
Allowance for credit losses	$	140,022		$	148,854		$	145,133		$	142,944		$	137,950
Allowance for credit losses to loans		1.19	%		1.29	%		1.27	%		1.27	%		1.23	%
Allowance for credit losses to nonperforming loans*		169.1	%		116.4	%		137.2	%		130.1	%		323.2	%
Quarterly net charge-offs (recoveries)	$	20,674		$	4,057		$	630		$	(1,059	)	$	7,131

*Guaranteed balances excluded	$	28,903		$	33,475		$	26,536		$	22,607		$	21,974
¹OREO and repossessed assets

Nonperforming assets increased $28.7 million during the fourth quarter 2025 and increased $117.7 million from the prior year quarter. The increase in nonperforming assets from the prior year quarter is primarily related to seven commercial real estate loans to special purpose entities (each an “SPE Borrower”) affiliated with two commercial banking relationships in Southern California that share some common ownership. Litigation resulting from a business dispute between the owners of the entities resulted in all of the SPE Borrowers filing bankruptcy in the first quarter of 2025, which was subsequently dismissed.

In the current quarter, the Company foreclosed on six of the seven properties serving as collateral for the loans. The six properties with a book value of $67.6 million were transferred to OREO at fair market value, less selling costs, resulting in a charge-off of $4.0 million and a gain on transfer of $6.2 million. While the charge-off and gain are reported in different income statement line items (provision for credit losses and noninterest income, respectively), the foreclosure of these properties resulted in a net gain of $2.2 million. It is anticipated that the seventh property with a book value of $4.0 million will be foreclosed on in the first quarter of 2026. The following table provides a summary of the foreclosed properties by collateral type:


($ in thousands)	Fair market value, less selling costs		Carrying value		Charge-off		Gain
Commercial real estate – investor owned:
Multifamily	$	13,240	$	17,209	$	3,969	$	—
Mixed use		49,760		44,341		—		2,066
Total commercial real estate – investor owned	$	63,000	$	61,550	$	3,969	$	2,066

Residential real estate:
Duplex	$	3,520	$	1,792	$	—	$	1,567
Condominiums		6,960		4,211		—		2,547
Total residential real estate		10,480		6,003		—		4,114
Total	$	73,480	$	67,553	$	3,969	$	6,180

Other than these foreclosures, the change in nonperforming assets from the linked quarter was driven primarily by net charge-offs of $20.7 million and a relationship with two loans totaling $28.0 million that went on nonaccrual. These loans are well-secured with real estate collateral and the Company expects to collect the full value of the outstanding loans. Annualized net charge-offs totaled 70 basis points of average loans in the fourth quarter 2025, compared to 14 basis points in the linked quarter and 26 basis points in the prior year quarter. Net charge-offs totaled 21 basis points of average loans in 2025, compared to 16 basis points in 2024.

The provision for credit losses totaled $9.2 million in the fourth quarter 2025, compared to $8.4 million and $6.8 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2025 was primarily related to net charge-offs. The Company adopted a new accounting standard in the current quarter that resulted in the $3.3 million credit mark on the acquired loan portfolio from the branch acquisition being added directly to the allowance for credit losses in purchase accounting and no provision for credit losses was recognized on the acquired loans.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:

	At
	December 31, 2025
($ in thousands)	Legacy EFSC^a		Branch Acquisition^a		Consolidated			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Noninterest-bearing demand accounts	$	4,661,613	$	212,502	$	4,874,115		$	4,386,513		$	4,322,332		$	4,285,061		$	4,484,072
Interest-bearing demand accounts		3,428,162		109,172		3,537,334			3,301,621			3,184,670			3,193,903			3,175,292
Money market and savings accounts		4,288,521		239,989		4,528,510			4,228,605			4,209,032			4,167,375			4,117,524
Brokered certificates of deposit		721,977		—		721,977			762,499			752,422			542,172			484,588
Other certificates of deposit		899,573		47,833		947,406			888,674			848,903			845,719			885,016
Total deposit portfolio	$	13,999,846	$	609,496	$	14,609,342		$	13,567,912		$	13,317,359		$	13,034,230		$	13,146,492

Noninterest-bearing deposits to total deposits						33.4	%		32.3	%		32.5	%		32.9	%		34.1	%
Total costs of deposits						1.64	%		1.80	%		1.82	%		1.83	%		2.00	%
^aAmounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ deposit portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition deposit portfolio.

Total deposits at December 31, 2025 were $14.6 billion, an increase of $1.0 billion and $1.5 billion from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $1.1 billion and $1.2 billion from the linked and prior year quarters, respectively. The increase was driven primarily by $609.5 million of deposits acquired in the branch acquisition and organic growth. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.4 billion at both December 31, 2025 and September 30, 2025.

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated:

	Quarter ended
	Linked quarter comparison										Prior year comparison
($ in thousands)	December 31, 2025		September 30, 2025			Increase (decrease)					December 31, 2024			Increase (decrease)
Deposit service charges	$	5,081	$	4,935		$	146		3	%	$	4,730		$	351		7	%
Wealth management revenue		2,642		2,571			71		3	%		2,719			(77	)	(3	)%
Card services revenue		2,621		2,535			86		3	%		2,484			137		6	%
Tax credit income (loss)		3,180		(300	)		3,480		NM			6,018			(2,838	)	(47	)%
Anticipated insurance recoveries		—		32,112			(32,112	)	(100	)%		—			—		—	%
Net gain (loss) on OREO		6,169		7			6,162		NM			(68	)		6,237		NM
Other income		5,719		6,764			(1,045	)	(15	)%		4,748			971		20	%
Total noninterest income	$	25,412	$	48,624		$	(23,212	)	(48	)%	$	20,631		$	4,781		23	%

NM – Not meaningful

Total noninterest income for the fourth quarter 2025 was $25.4 million, a decrease of $23.2 million and an increase of $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by the $32.1 million in accrued insurance proceeds that are anticipated to be received as a result of the recaptured tax credits recognized in the linked quarter that did not reoccur, partially offset by a $6.2 million net gain on OREO and an increase of $3.5 million in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The increase from the prior year quarter was primarily due to a $6.2 million net gain on OREO, partially offset by a $2.8 million decrease in tax credit income.

The following table presents a comparative summary of the major components of other income for the periods indicated:

	Quarter ended
	Linked quarter comparison									Prior year comparison
($ in thousands)	December 31, 2025		September 30, 2025		Increase (decrease)					December 31, 2024		Increase (decrease)
BOLI	$	1,925	$	2,062	$	(137	)	(7	)%	$	895	$	1,030		115	%
Community development investments		922		309		613		198	%		297		625		210	%
Gain on SBA loan sales		—		1,140		(1,140	)	(100	)%		—		—		—	%
Private equity fund distributions		226		626		(400	)	(64	)%		320		(94	)	(29	)%
Servicing fees		517		587		(70	)	(12	)%		528		(11	)	(2	)%
Swap fees		159		341		(182	)	(53	)%		972		(813	)	(84	)%
Miscellaneous income		1,970		1,699		271		16	%		1,736		234		13	%
Total other income	$	5,719	$	6,764	$	(1,045	)	(15	)%	$	4,748	$	971		20	%

Other income in the fourth quarter 2025 decreased $1.0 million and increased $1.0 million compared to the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by a gain on SBA loan sales in the linked quarter that did not reoccur in the current period. Compared to the prior year quarter, the increase in other income was related to an increase in BOLI income due to the purchase of additional life insurance policies and higher community development investment income, partially offset by lower swap fee income. Community development investment income is not a consistent source of income and fluctuates based on distributions from the underlying funds.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

	Quarter ended
	Linked quarter comparison															Prior year comparison
	December 31, 2025
($ in thousands)	Legacy EFSC^a			Branch Acquisition^a		Consolidated			September 30, 2025		Increase (decrease)					December 31, 2024		Increase (decrease)
Employee compensation and benefits	$	48,029		$	2,120	$	50,149		$	49,640	$	509		1	%	$	46,168	$	3,981		9	%
Deposit costs		27,471			—		27,471			27,172		299		1	%		22,881		4,590		20	%
Occupancy		5,006			758		5,764			4,895		869		18	%		4,336		1,428		33	%
Core conversion expense		—			—		—			—		—		—	%		1,893		(1,893	)	(100	)%
Acquisition costs		2,548			—		2,548			609		1,939		318	%		—		2,548		—	%
FDIC special assessment		(652	)		—		(652	)		—		(652	)	—	%		—		(652	)	—	%
Other expense		27,888			1,364		29,252			27,474		1,778		6	%		24,244		5,008		21	%
Total noninterest expense	$	110,290		$	4,242	$	114,532		$	109,790	$	4,742		4	%	$	99,522	$	15,010		15	%

^aAmounts reported are for the quarter ended December 31, 2025 and are separately shown attributable to the acquired branches’ noninterest expense, and the Company’s legacy branch noninterest expense.

Noninterest expense was $114.5 million for the fourth quarter 2025, a $4.7 million and $15.0 million increase from the linked and prior year quarters, respectively. Acquisition costs related to the branch acquisition that was completed during the current quarter increased $1.9 million compared to the linked quarter. Employee compensation and benefits increased $4.0 million from the prior year quarter because of an increase in the associate base and merit increases throughout 2025. Compared to the prior year quarter, the increase was also related to an increase in acquisition costs of $2.5 million and an increase of $4.6 million in deposit costs due to higher average deposit vertical balances.

For the fourth quarter 2025, the Company’s core efficiency ratio⁶ was 58.3% for the quarter ended December 31, 2025, compared to 61.0% for the linked quarter and 57.1% for the prior year quarter.

____________________

⁶ Core efficiency ratio and adjusted effective tax rate are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Income Taxes

The Company’s effective tax rate was 21.5% in the fourth quarter 2025, compared to 49.0% and 19.5% in the linked and prior year quarters, respectively. Included in tax expense during the linked quarter was $24.1 million in transferrable tax credits that were recaptured as discussed above and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding the impact of the recaptured tax credits and related insurance proceeds, the adjusted effective tax rate⁶ for the third quarter 2025 was 20.0%. As part of the normal, ongoing review of state tax apportionment, the Company’s state statutory tax rate was increased in the fourth quarter. Due to the increase, the Company’s federal and state statutory tax rate is a combined 25.1%, and after adjusting for permanent tax differences, the Company’s adjusted effective tax rate for 2025 is approximately 20.0%.

Capital

The following table presents total equity and various EFSC capital ratios for the most recent five quarters:

	At
($ in thousands)	December 31, 2025*			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Stockholders’ equity	$	2,039,386		$	1,982,332		$	1,922,899		$	1,868,073		$	1,824,002
Total risk-based capital to risk-weighted assets		13.9	%		14.4	%		14.7	%		14.7	%		14.6	%
Tier 1 capital to risk-weighted assets		12.8	%		13.3	%		13.2	%		13.1	%		13.1	%
Common equity tier 1 capital to risk-weighted assets		11.6	%		12.0	%		11.9	%		11.8	%		11.8	%
Leverage ratio		10.5	%		11.1	%		11.1	%		11.0	%		11.1	%
Tangible common equity to tangible assets		9.07	%		9.60	%		9.42	%		9.30	%		9.05	%

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $2.0 billion at December 31, 2025, an increase of $57.1 million from the linked quarter. The Company’s tangible common book value per common share⁷ was $41.37 at December 31, 2025, compared to $41.58 and $37.27 in the linked and prior year quarters, respectively.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Use of Non-GAAP Financial Measures

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

____________________

⁷ Tangible common book value per common share is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, core conversion expenses, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, net gain or loss on OREO, and net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that tangible common equity to tangible assets provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, January 27, 2026. During the call, management will review the fourth quarter 2025 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 30174. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2025EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $17.3 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, stockholder value creation and the impact of acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, changes in business prospects that could impact goodwill estimates and assumptions, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (including wildfires and earthquakes), terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, or other health emergencies and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

	Quarter ended															Year ended
(in thousands, except per share data)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Dec 31, 2025			Dec 31, 2024
EARNINGS SUMMARY
Net interest income	$	168,174		$	158,286		$	152,762		$	147,516		$	146,370		$	626,738		$	568,096
Provision for credit losses		9,236			8,447			3,470			5,184			6,834			26,337			21,508
Noninterest income		25,412			48,624			20,604			18,483			20,631			113,123			69,703
Noninterest expense		114,532			109,790			105,702			99,783			99,522			429,807			385,047
Income before income tax expense		69,818			88,673			64,194			61,032			60,645			283,717			231,244
Income tax expense		15,024			43,438			12,810			11,071			11,811			82,343			45,978
Net income		54,794			45,235			51,384			49,961			48,834			201,374			185,266
Preferred stock dividends		937			938			937			938			937			3,750			3,750
Net income available to common stockholders	$	53,857		$	44,297		$	50,447		$	49,023		$	47,897		$	197,624		$	181,516

Diluted earnings per common share	$	1.45		$	1.19		$	1.36		$	1.31		$	1.28		$	5.31		$	4.83
Adjusted diluted earnings per share¹	$	1.36		$	1.20		$	1.37		$	1.31		$	1.32		$	5.24		$	4.88
Return on average assets		1.27	%		1.11	%		1.30	%		1.30	%		1.27	%		1.24	%		1.25	%
Adjusted return on average assets¹		1.19	%		1.12	%		1.31	%		1.29	%		1.31	%		1.23	%		1.26	%
Return on average common equity		10.95	%		9.29	%		11.03	%		11.10	%		10.75	%		10.58	%		10.60	%
Adjusted return on average common equity¹		10.28	%		9.40	%		11.12	%		11.08	%		11.08	%		10.45	%		10.71	%
ROATCE¹		14.02	%		11.56	%		13.84	%		14.02	%		13.63	%		13.34	%		13.58	%
Adjusted ROATCE¹		13.15	%		11.70	%		13.96	%		13.99	%		14.05	%		13.17	%		13.71	%
Net interest margin (tax equivalent)		4.26	%		4.23	%		4.21	%		4.15	%		4.13	%		4.21	%		4.16	%
Efficiency ratio		59.2	%		53.1	%		61.0	%		60.1	%		59.6	%		58.1	%		60.4	%
Core efficiency ratio¹		58.3	%		61.0	%		59.3	%		58.8	%		57.1	%		59.3	%		58.4	%

Assets	$	17,300,884		$	16,402,405		$	16,076,299		$	15,676,594		$	15,596,431
Average assets	$	17,099,429		$	16,178,088		$	15,859,721		$	15,642,999		$	15,309,577		$	16,199,003		$	14,841,690
Period end common shares outstanding		36,965			37,011			36,950			36,928			36,988
Dividends per common share	$	0.32		$	0.31		$	0.30		$	0.29		$	0.28		$	1.22		$	1.06
Tangible book value per common share¹	$	41.37		$	41.58		$	40.02		$	38.54		$	37.27
Tangible common equity to tangible assets¹		9.07	%		9.60	%		9.42	%		9.30	%		9.05	%
Total risk-based capital to risk-weighted assets²		13.9	%		14.4	%		14.7	%		14.7	%		14.6	%

¹Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
²Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Quarter ended												Year ended
(in thousands, except per share data)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Dec 31, 2025			Dec 31, 2024
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	232,273		$	225,390		$	218,967	$	211,780	$	215,380	$	888,410		$	851,051
Interest expense		64,099			67,104			66,205		64,264		69,010		261,672			282,955
Net interest income		168,174			158,286			152,762		147,516		146,370		626,738			568,096
Provision for credit losses		9,236			8,447			3,470		5,184		6,834		26,337			21,508
Net interest income after provision for credit losses		158,938			149,839			149,292		142,332		139,536		600,401			546,588

NONINTEREST INCOME
Deposit service charges		5,081			4,935			4,940		4,420		4,730		19,376			18,344
Wealth management revenue		2,642			2,571			2,584		2,659		2,719		10,456			10,452
Card services revenue		2,621			2,535			2,444		2,395		2,484		9,995			9,966
Tax credit income (loss)		3,180			(300	)		2,207		2,610		6,018		7,697			8,954
Insurance recoveries¹		—			32,112			—		—		—		32,112			—
Other income		11,888			6,771			8,429		6,399		4,680		33,487			21,987
Total noninterest income		25,412			48,624			20,604		18,483		20,631		113,123			69,703

NONINTEREST EXPENSE
Employee compensation and benefits		50,149			49,640			50,164		48,208		46,168		198,161			181,313
Deposit costs		27,471			27,172			24,765		23,823		22,881		103,231			88,645
Occupancy		5,764			4,895			5,065		4,430		4,336		20,154			17,231
FDIC special assessment		(652	)		—			—		—		—		(652	)		625
Core conversion expense		—			—			—		—		1,893		—			4,868
Acquisition costs		2,548			609			518		—		—		3,675			—
Other expense		29,252			27,474			25,190		23,322		24,244		105,238			92,365
Total noninterest expense		114,532			109,790			105,702		99,783		99,522		429,807			385,047

Income before income tax expense		69,818			88,673			64,194		61,032		60,645		283,717			231,244

Income tax expense		15,024			11,326			12,810		11,071		11,811		50,231			45,978
Tax credit recapture and provision for anticipated tax applied to related insurance recoveries²		—			32,112			—		—		—		32,112			—
Total income tax expense		15,024			43,438			12,810		11,071		11,811		82,343			45,978
Net income	$	54,794		$	45,235		$	51,384	$	49,961	$	48,834	$	201,374		$	185,266
Preferred stock dividends		937			938			937		938		937		3,750			3,750
Net income available to common stockholders	$	53,857		$	44,297		$	50,447	$	49,023	$	47,897	$	197,624		$	181,516

Basic earnings per common share	$	1.46		$	1.20		$	1.36	$	1.33	$	1.29	$	5.34		$	4.86
Diluted earnings per common share	$	1.45		$	1.19		$	1.36	$	1.31	$	1.28	$	5.31		$	4.83

¹Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.
²Represents recapture of $24.1 million solar tax credit and approximately $8.0 million of estimated tax liability related to anticipated proceeds from pending insurance claim related to the recapture event.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	At
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
BALANCE SHEETS

ASSETS
Cash and due from banks	$	208,080		$	208,455		$	252,817		$	260,280		$	270,975
Interest-earning deposits		474,720			264,399			239,602			222,780			495,076
Debt and equity investments		3,810,876			3,527,467			3,384,347			3,108,763			2,863,989
Loans held for sale		928			681			586			—			110

Loans		11,800,338			11,583,109			11,408,840			11,298,763			11,220,355
Allowance for credit losses		(140,022	)		(148,854	)		(145,133	)		(142,944	)		(137,950	)
Total loans, net		11,660,316			11,434,255			11,263,707			11,155,819			11,082,405

Fixed assets, net		58,993			49,248			48,639			48,083			45,009
Goodwill		416,968			365,164			365,164			365,164			365,164
Intangible assets, net		21,175			6,140			6,876			7,628			8,484
Other assets		648,828			546,596			514,561			508,077			465,219
Total assets	$	17,300,884		$	16,402,405		$	16,076,299		$	15,676,594		$	15,596,431

LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	4,874,115		$	4,386,513		$	4,322,332		$	4,285,061		$	4,484,072
Interest-bearing deposits		9,735,227			9,181,399			8,995,027			8,749,169			8,662,420
Total deposits		14,609,342			13,567,912			13,317,359			13,034,230			13,146,492
Subordinated debentures and notes		93,688			93,617			156,796			156,695			156,551
FHLB advances		—			327,000			294,000			205,000			—
Other borrowings		387,717			247,006			210,641			255,635			280,821
Other liabilities		170,751			184,538			174,604			156,961			188,565
Total liabilities		15,261,498			14,420,073			14,153,400			13,808,521			13,772,429
Stockholders’ equity:
Preferred stock		71,988			71,988			71,988			71,988			71,988
Common stock		370			370			369			369			370
Additional paid-in capital		1,000,775			997,446			991,663			988,554			990,733
Retained earnings		1,020,840			980,548			947,864			908,553			877,629
Accumulated other comprehensive loss		(54,587	)		(68,020	)		(88,985	)		(101,391	)		(116,718	)
Total stockholders’ equity		2,039,386			1,982,332			1,922,899			1,868,073			1,824,002
Total liabilities and stockholders’ equity	$	17,300,884		$	16,402,405		$	16,076,299		$	15,676,594		$	15,596,431

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Year ended
	December 31, 2025						December 31, 2024
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
AVERAGE BALANCE SHEET

ASSETS
Interest-earning assets:
Loans^{1, 2}	$	11,463,410	$	755,222	6.59	%	$	10,990,774	$	755,448	6.87	%
Taxable securities		2,057,017		83,734	4.07			1,512,132		53,167	3.52
Nontaxable securities²		1,209,424		43,623	3.61			1,000,558		31,963	3.19
Total securities		3,266,441		127,357	3.90			2,512,690		85,130	3.39
Interest-earning deposits		418,980		17,566	4.19			368,221		18,918	5.14
Total interest-earning assets		15,148,831		900,145	5.94			13,871,685		859,496	6.20

Noninterest-earning assets		1,050,172						970,005

Total assets	$	16,199,003					$	14,841,690

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	3,311,368	$	68,932	2.08	%	$	3,033,616	$	76,932	2.54	%
Money market accounts		3,730,110		113,286	3.04			3,494,497		127,651	3.65
Savings accounts		535,021		724	0.14			567,147		1,261	0.22
Certificates of deposit		1,533,608		58,156	3.79			1,371,009		58,764	4.29
Total interest-bearing deposits		9,110,107		241,098	2.65			8,466,269		264,608	3.13
Subordinated debentures and notes		135,809		9,543	7.03			156,260		10,497	6.72
FHLB advances		75,027		3,422	4.56			30,363		1,691	5.57
Securities sold under agreements to repurchase		201,001		5,829	2.90			164,959		5,667	3.44
Other borrowings		56,610		1,780	3.14			37,833		492	1.30
Total interest-bearing liabilities		9,578,554		261,672	2.73			8,855,684		282,955	3.20

Noninterest-bearing liabilities:
Demand deposits		4,525,761						4,042,368
Other liabilities		155,194						159,463
Total liabilities		14,259,509						13,057,515
Stockholders’ equity		1,939,494						1,784,175
Total liabilities and stockholders’ equity	$	16,199,003					$	14,841,690

Total net interest income			$	638,473					$	576,541
Net interest margin					4.21	%					4.16	%

¹ Average balances include nonaccrual loans. Interest income includes loan fees of $7.0 million and $9.6 million for the years ended December 31, 2025 and December 31, 2024, respectively.
² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $11.7 million and $8.4 million for the years ended December 31, 2025 and December 31, 2024, respectively.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	At or for the quarter ended
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
LOAN PORTFOLIO
Commercial and industrial	$	5,231,616		$	4,943,561		$	4,870,268		$	4,729,707		$	4,716,689
Commercial real estate		5,453,821			5,178,649			5,074,100			5,046,293			4,974,787
Construction real estate		687,584			858,146			844,497			880,708			891,059
Residential real estate		367,682			365,010			364,281			366,353			359,263
Consumer		59,635			237,743			255,694			275,702			278,557
Total loans	$	11,800,338		$	11,583,109		$	11,408,840		$	11,298,763		$	11,220,355

DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	4,874,115		$	4,386,513		$	4,322,332		$	4,285,061		$	4,484,072
Interest-bearing demand accounts		3,537,334			3,301,621			3,184,670			3,193,903			3,175,292
Money market and savings accounts		4,528,510			4,228,605			4,209,032			4,167,375			4,117,524
Brokered certificates of deposit		721,977			762,499			752,422			542,172			484,588
Other certificates of deposit		947,406			888,674			848,903			845,719			885,016
Total deposits	$	14,609,342		$	13,567,912		$	13,317,359		$	13,034,230		$	13,146,492

AVERAGE BALANCES
Loans	$	11,794,459		$	11,454,183		$	11,358,209		$	11,240,806		$	11,100,112
Securities		3,623,965			3,353,305			3,149,010			2,930,912			2,748,063
Interest-earning assets		15,971,267			15,135,880			14,822,957			14,650,854			14,323,053
Assets		17,099,429			16,178,088			15,859,721			15,642,999			15,309,577
Deposits		14,537,381			13,604,302			13,245,241			13,141,556			12,958,156
Stockholders’ equity		2,022,472			1,964,126			1,906,089			1,863,272			1,844,509
Tangible common equity¹		1,524,453			1,520,476			1,461,700			1,418,094			1,398,427

YIELDS (tax equivalent)
Loans		6.51	%		6.64	%		6.64	%		6.57	%		6.73	%
Securities		4.02			3.93			3.86			3.75			3.51
Interest-earning assets		5.86			5.99			6.00			5.93			6.05
Interest-bearing deposits		2.46			2.67			2.70			2.77			2.96
Deposits		1.64			1.80			1.82			1.83			2.00
Subordinated debentures and notes		6.61			7.78			7.00			6.63			6.70
FHLB advances and other borrowed funds		3.27			3.47			3.48			3.01			2.81
Interest-bearing liabilities		2.52			2.77			2.81			2.84			3.02
Net interest margin		4.26			4.23			4.21			4.15			4.13
¹Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Quarter ended
(in thousands, except per share data)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
ASSET QUALITY
Net charge-offs (recoveries)	$	20,674		$	4,057		$	630		$	(1,059	)	$	7,131
Nonperforming loans		82,809			127,878			105,807			109,882			42,687
Classified assets		410,485			352,792			281,162			264,460			193,838
Nonperforming loans to total loans		0.70	%		1.10	%		0.93	%		0.97	%		0.38	%
Nonperforming assets to total assets		0.95	%		0.83	%		0.71	%		0.72	%		0.30	%
Allowance for credit losses to total loans		1.19	%		1.29	%		1.27	%		1.27	%		1.23	%
Allowance for credit losses to loans, excluding guaranteed loans¹		1.29	%		1.40	%		1.38	%		1.38	%		1.34	%
Allowance for credit losses to nonperforming loans		169.1	%		116.4	%		137.2	%		130.1	%		323.2	%
Net charge-offs (recoveries) to average loans – annualized		0.70	%		0.14	%		0.02	%		(0.04	)%		0.26	%

WEALTH MANAGEMENT
Trust assets under management	$	2,750,803		$	2,566,784		$	2,457,471		$	2,250,004		$	2,412,471

SHARE DATA
Book value per common share	$	53.22		$	51.62		$	50.09		$	48.64		$	47.37
Tangible book value per common share¹	$	41.37		$	41.58		$	40.02		$	38.54		$	37.27
Market value per share	$	54.00		$	57.98		$	55.10		$	53.74		$	56.40
Period end common shares outstanding		36,965			37,011			36,950			36,928			36,988
Average basic common shares		36,997			37,015			36,963			36,971			37,118
Average diluted common shares		37,265			37,333			37,172			37,287			37,447

CAPITAL
Total risk-based capital to risk-weighted assets²		13.9	%		14.4	%		14.7	%		14.7	%		14.6	%
Tier 1 capital to risk-weighted assets²		12.8	%		13.3	%		13.2	%		13.1	%		13.1	%
Common equity tier 1 capital to risk-weighted assets²		11.6	%		12.0	%		11.9	%		11.8	%		11.8	%
Tangible common equity to tangible assets¹		9.07	%		9.60	%		9.42	%		9.30	%		9.05	%

¹Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
²Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

	Quarter ended															Year ended
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Dec 31, 2025			Dec 31, 2024
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	168,174		$	158,286		$	152,762		$	147,516		$	146,370		$	626,738		$	568,096
Tax equivalent adjustment		3,477			3,045			2,738			2,475			2,272			11,735			8,445
Noninterest income (GAAP)		25,412			48,624			20,604			18,483			20,631			113,123			69,703
Less insurance recoveries¹		—			32,112			—			—			—			32,112			—
Less net gain (loss) on sale of investment securities		(57	)		—			—			106			—			49			—
Less net gain (loss) on OREO		6,169			7			56			23			(68	)		6,255			3,089
Core revenue (non-GAAP)	$	190,951		$	177,836		$	176,048		$	168,345		$	169,341		$	713,180		$	643,155

Noninterest expense (GAAP)	$	114,532		$	109,790		$	105,702		$	99,783		$	99,522		$	429,807		$	385,047
Less FDIC special assessment		(652	)		—			—			—			—			(652	)		625
Less core conversion expense		—			—			—			—			1,893			—			4,868
Less amortization on intangibles		1,380			736			753			855			916			3,724			3,834
Less acquisition costs		2,548			609			518			—			—			3,675			—
Core noninterest expense (non-GAAP)	$	111,256		$	108,445		$	104,431		$	98,928		$	96,713		$	423,060		$	375,720

Core efficiency ratio (non-GAAP)		58.3	%		61.0	%		59.3	%		58.8	%		57.1	%		59.3	%		58.4	%
¹Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.

	Quarter ended
(in thousands, except per share data)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Stockholders’ equity (GAAP)	$	2,039,386		$	1,982,332		$	1,922,899		$	1,868,073		$	1,824,002
Less preferred stock		71,988			71,988			71,988			71,988			71,988
Less goodwill		416,968			365,164			365,164			365,164			365,164
Less intangible assets		21,175			6,140			6,876			7,628			8,484
Tangible common equity (non-GAAP)	$	1,529,255		$	1,539,040		$	1,478,871		$	1,423,293		$	1,378,366
Less net unrealized losses on HTM securities, after tax		26,431			37,341			56,508			55,819			52,881
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)	$	1,502,824		$	1,501,699		$	1,422,363		$	1,367,474		$	1,325,485

Common shares outstanding		36,965			37,011			36,950			36,928			36,988
Tangible book value per common share (non-GAAP)	$	41.37		$	41.58		$	40.02		$	38.54		$	37.27

Total assets (GAAP)	$	17,300,884		$	16,402,405		$	16,076,299		$	15,676,594		$	15,596,431
Less goodwill		416,968			365,164			365,164			365,164			365,164
Less intangible assets		21,175			6,140			6,876			7,628			8,484
Tangible assets (non-GAAP)	$	16,862,741		$	16,031,101		$	15,704,259		$	15,303,802		$	15,222,783

Tangible common equity to tangible assets (non-GAAP)		9.07	%		9.60	%		9.42	%		9.30	%		9.05	%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)		8.91	%		9.37	%		9.06	%		8.94	%		8.71	%

	Quarter ended															Year ended
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Dec 31, 2025			Dec 31, 2024
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE
Average stockholder’s equity (GAAP)	$	2,022,472		$	1,964,126		$	1,906,089		$	1,863,272		$	1,844,509		$	1,939,494		$	1,784,175
Less average preferred stock		71,988			71,988			71,988			71,988			71,988			71,988			71,988
Less average goodwill		414,858			365,164			365,164			365,164			365,164			377,690			365,164
Less average intangible assets		11,173			6,498			7,237			8,026			8,930			8,238			10,329
Average tangible common equity (non-GAAP)	$	1,524,453		$	1,520,476		$	1,461,700		$	1,418,094		$	1,398,427		$	1,481,578		$	1,336,694

Net income (GAAP)	$	54,794		$	45,235		$	51,384		$	49,961		$	48,834		$	201,374		$	185,266
FDIC special assessment (after tax)		(488	)		—			—			—			—			(488	)		470
Core conversion expense (after tax)		—			—			—			—			1,424			—			3,661
Acquisition costs (after tax)		1,742			549			462			—			—			2,753			—
Less net gain (loss) on sale of investment securities (after tax)		(43	)		—			—			80			—			37			—
Less net gain (loss) on OREO (after tax)		4,621			5			42			17			(51	)		4,685			2,323
Net income adjusted (non-GAAP)	$	51,470		$	45,779		$	51,804		$	49,864		$	50,309		$	198,917		$	187,074
Less preferred stock dividends		937			938			937			938			937			3,750			3,750
Net income available to common stockholders adjusted (non-GAAP)	$	50,533		$	44,841		$	50,867		$	48,926		$	49,372		$	195,167		$	183,324
Return on average common equity		10.95	%		9.29	%		11.03	%		11.10	%		10.75	%		10.58	%		10.60	%
Adjusted return on average common equity (non-GAAP)		10.28	%		9.40	%		11.12	%		11.08	%		11.08	%		10.45	%		10.71	%
ROATCE (non-GAAP)		14.02	%		11.56	%		13.84	%		14.02	%		13.63	%		13.34	%		13.58	%
Adjusted ROATCE (non-GAAP)		13.15	%		11.70	%		13.96	%		13.99	%		14.05	%		13.17	%		13.71	%

Average assets	$	17,099,429		$	16,178,088		$	15,859,721		$	15,642,999		$	15,309,577		$	16,199,003		$	14,841,690
Return on average assets (GAAP)		1.27	%		1.11	%		1.30	%		1.30	%		1.27	%		1.24	%		1.25	%
Adjusted return on average assets (non-GAAP)		1.19	%		1.12	%		1.31	%		1.29	%		1.31	%		1.23	%		1.26	%
Average diluted common shares		37,265			37,333			37,172			37,287			37,447			37,239			37,567
Diluted earnings per share (GAAP)	$	1.45		$	1.19		$	1.36		$	1.31		$	1.28		$	5.31		$	4.83
Adjusted diluted earnings per share (non-GAAP)	$	1.36		$	1.20		$	1.37		$	1.31		$	1.32		$	5.24		$	4.88

	Quarter ended												Year ended
($ in thousands)	Dec 31, 2025			Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024			Dec 31, 2025			Dec 31, 2024
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income (GAAP)	$	168,174		$	158,286	$	152,762	$	147,516	$	146,370		$	626,738		$	568,096
Noninterest income (GAAP)		25,412			48,624		20,604		18,483		20,631			113,123			69,703
FDIC special assessment		(652	)		—		—		—		—			(652	)		625
Core conversion expense		—			—		—		—		1,893			—			4,868
Acquisition costs		2,548			609		518		—		—			3,675			—
Less net gain (loss) on sale of investment securities		(57	)		—		—		106		—			49			—
Less net gain (loss) on OREO		6,169			7		56		23		(68	)		6,255			3,089
Less insurance recoveries		—			32,112		—		—		—			32,112			—
Less noninterest expense (GAAP)		114,532			109,790		105,702		99,783		99,522			429,807			385,047
PPNR (non-GAAP)	$	74,838		$	65,610	$	68,126	$	66,087	$	69,440		$	274,661		$	255,156

	At
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS
Loans	$	11,800,338		$	11,583,109		$	11,408,840		$	11,298,763		$	11,220,355
Less guaranteed loans		960,132			922,168			913,118			942,651			947,665
Adjusted loans (non-GAAP)	$	10,840,206		$	10,660,941		$	10,495,722		$	10,356,112		$	10,272,690

Allowance for credit losses	$	140,022		$	148,854		$	145,133		$	142,944		$	137,950
Allowance for credit losses/loans (GAAP)		1.19	%		1.29	%		1.27	%		1.27	%		1.23	%
Allowance for credit losses/adjusted loans (non-GAAP)		1.29	%		1.40	%		1.38	%		1.38	%		1.34	%

	Quarter ended															Year ended
($ in thousands)	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Dec 31, 2025
ADJUSTED EFFECTIVE TAX RATE
Income before income tax expense (GAAP)	$	69,818		$	88,673		$	64,194		$	61,032		$	60,645		$	283,717
Less insurance recoveries¹		—			32,112			—			—			—			32,112
Adjusted income before income tax expense (non-GAAP)	$	69,818		$	56,561		$	64,194		$	61,032		$	60,645		$	251,605

Income tax expense (GAAP)	$	15,024		$	43,438		$	12,810		$	11,071		$	11,811		$	82,343
Less tax credit recapture and tax applied to insurance recoveries¹		—			32,112			—			—			—			32,112
Adjusted income tax expense (non-GAAP)	$	15,024		$	11,326		$	12,810		$	11,071		$	11,811		$	50,231

Effective tax rate (GAAP)		21.5	%		49.0	%		20.0	%		18.1	%		19.5	%		29.0	%
Adjusted effective tax rate (non-GAAP)		21.5	%		20.0	%		20.0	%		18.1	%		19.5	%		20.0	%
¹Represents $32.1 million of anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event included in noninterest income, and $24.1 million of tax liability related to the anticipated recapture plus approximately $8.0 million of estimated tax liability related to the anticipated proceeds from the pending insurance claim included in income tax expense.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260126410746/en/

Icy Strait Hoonah AK Wilderness Tour | Scenic Drives, Wildlife, and Photo Stops

Launch Pages on February 5, 2026

Originally Posted On: https://wildernessislandtours.com/icy-strait-hoonah-ak-wilderness-tour-scenic-drives-wildlife-and-photo-stops/

Local insight, real-world pacing, and honest expectations—from someone who actually runs shore days like this and cares about getting you back to the ship on time.

Surprising fact: more than 40% of cruise passengers choose short, land‑based shore excursions to see wildlife without missing the ship. That’s my wheelhouse. This short, high‑impact trip gets you off the ship and into real Southeast Alaska scenery fast. We run it the local way, with simple logistics right at the dock and flexible routes when wildlife pops.

You should expect a land‑focused wildlife‑and‑scenery outing with easy scenic drives, planned pull‑offs, and actual time for photos—not just drive‑by views. The start is near Icy Strait Point, so your port day isn’t eaten up by long commuting. First time in Hoonah? Perfect. It’s a smart first Alaska wildlife day if you want real chances at bears, eagles, and shoreline life—without committing to a long on‑water block.

Quick heads-up: Glacier Bay is about 75 miles north and its own destination. Different permit world, different day. Here, we keep it practical, personal, and close to port.

Key Takeaways

Short, high‑value shore excursions let you maximize port time without stress.
Local, family‑style guiding with flexible stops and photo windows when critters show.
Close to the dock at Icy Strait Point: less bus time, more outside time.
Great first‑day wildlife option if you want bears, eagles, and shoreline life—no overpromises.
Know the difference: Glacier Bay is separate and farther north.

Wilderness Island Tours, LLC: Your Local Hoonah Shore Excursion

We’re locals—Tlingit roots, community ties, and a lifetime of reading tides, salmon runs, and bear seasons. It’s not a canned script; it’s a lived-in route. We monitor ship schedules, watch the weather, and shift the plan if something great appears. That’s the advantage of staying land‑based and nimble.

Family-run guides who know the place

Our guides live here and share local culture and history as we drive. We track tides, recent sightings, and the small cues—fresh tracks on a shoulder, an eagle strafing low over kelp—that tell us when to pull over.

Small-group focus for a better visit

Small groups mean better sight lines, calmer stops, and more time for your questions. You feel the difference in comfort and pace—less waiting, more seeing.

We’re the only land‑based tour operator originating from Icy Strait Hoonah for cruise guests, and we’ve been doing this for decades. It shows in the timing and the little things—like having the van staged early at the Excursion Hub and the easy drop at the Front Gate after.

FeatureLocal, family-ledBig-bus operatorGroup sizeSmall group, intimateLarge, fixed seatingRoute flexibilityAdaptive to sightingsFixed itineraryLocal contextCulture and history from localsGeneral commentaryShip coordinationPlanned around ship timingLess flexible for delays

Icy Strait Hoonah AK Wilderness Tour: What You’ll Do in a Few Unforgettable Hours

Meet your guide, hop into a comfortable van, and roll through rainforest and shoreline lookouts at an easy, camera‑friendly pace. We keep it close to port and focused on the good stuff: views, wildlife, and time to actually take the shot.

Scenic drives through rainforest landscapes near Icy Strait Point

Mossy spruce, quiet coves, and long sea lines—the roads here open and close like stage curtains. We plan quick pull‑offs where the light works, and the wind isn’t slapping your lens cap.

Wildlife viewing opportunities on land and along the water

We scan the day’s “hot lanes” for bald eagles, sea lions, otters, and deer. On Chichagof Island, brown bears are very possible from safe roadside vantage points. We run a focused search without overpromising, because that’s how you keep it real.

Looking for a flexible, camera‑first shore day? This is your Icy Strait Hoonah AK Wilderness Tour—simple, scenic, and surprisingly full for a short window ashore.

Planned photo stops so you can actually capture the moment

We avoid the “shoot through glass” problem. We pull over, step out, settle in, and then shoot. Quick walks, clear sight lines, safe spacing—the basics that make better photos.

Why Hoonah and Icy Strait Are a Bucket-List Stop in Southeast Alaska

A short stroll from the ship puts you in a place where raw coast and real community sit side by side. There’s history baked into the boardwalk, a working harbor vibe, and the kind of eagle traffic that makes you double‑take like—wait, did that just happen three times in five minutes?

A coastal setting with real culture and history

Centered on a restored salmon cannery, this area blends exhibits, small museums, shops, and food with lived Tlingit history. It’s not a set; it’s home.

Fast, convenient access from cruise ships

Ships dock at Icy Strait Point, and most shore meet‑ups are a simple walk. That saves time for actual wildlife and scenery. If you’re visiting as a pair and want something easy and personal, many guests tell me this feels like an Icy Strait Couple Tour—even in a small group—because the pacing just… fits.

Wildlife You Can Spot on Tour

Realistic checklist time. Sightings depend on tides, salmon runs, weather, and pure animal choice. We stack the odds by timing stops and following fresh signs.

Brown bears on Chichagof Island (a.k.a. “Bear Island”) are a fair possibility in season, with notably high densities in the region. Bald eagles are common, sea lions haul out on rocky ledges, sea otters raft in kelp, Sitka black‑tailed deer browse forest edges, and humpbacks sometimes spout within view from land when the bait pushes inshore.

If “bears or bust” is your thing, I get it—still, we keep it responsible. When a bear does appear, we let the moment breathe from a safe distance. If you’re specifically keen on a Icy Strait Alaska Bear viewing Tour, this land route is a smart, time‑aware way to try.

Bear Country Highlights Near Icy Strait

Every pull‑off is a decision: wind, light, tracks, tides. That’s how a bear search should run—deliberate, not lucky.

Chichagof Island’s reputation for brown bears

High densities per square mile make focused viewing possible from safe roadside vantage points. We don’t push animals to roads; we read sign and set up where they already move.

What guides look for by season

Early season: fresh dig marks, roots, berries, salmon carcasses. Later: tidal grasses and mate‑season movement on the flats. We track food first, then everything else.

How you’ll view bears responsibly and safely

We scan for tracks, fresh scat, shoreline movement, and then commit to a stop. You watch, photograph, and learn—while we keep a respectful buffer and clear instructions. That’s the whole point: bears behaving naturally.

TopicWhat guides checkSeasonal focusVisitor expectationTracks & signsFootprints, dig marks, scatAll seasonBrief stops for confirmationTidal timingShoreline foraging areasMid to late seasonLonger viewing windows at low tideFood sourcesSalmon runs, berries, grassesEarly: salmon/berries; Later: tidal grassesHigher odds when food is presentSafetyVehicle‑based viewing, distanceAll seasonStrict guide rules, no approaches

Want a dedicated bear‑search vibe with a little romance to it? Plenty of couples ask for that—call it an Icy Strait Hoonah AK Bear Tour that keeps things calm, scenic, and unhurried.

Whale Watching Possibilities Around Icy Strait Point and Point Adolphus

When currents compress bait, the ocean turns on. Humpbacks push in, birds go bananas, and the surface boils. It’s a show.

Humpback season and what to expect

Roughly May through September is prime. Even from shore, you’ll sometimes catch distant blows or a surprise tail slap from a headland. For longer water time, a dedicated boat trip is the move.

Why Point Adolphus and the Glacier Bay corridor are special

Strong current lines + bait = concentrated whales. Point Adolphus is famous for a reason. If you’re planning a shared outing with family or friends and want something simple on land first, this can double as an Icy Strait Hoonah AK Group Tour before you add a boat block.

Dedicated whale watching options and a guarantee

Boat tours generally run about three hours total (≈2.5 on the water) with an easy transfer from the Excursion Hub. Some operators offer a “guarantee” in peak season—check the exact terms. Our land day? No formal guarantee—just honest odds and smart routing.

FeatureWilderness-style outingDedicated whale watching tourPrimary focusScenery + wildlife from landExtended on‑water whale watchingTime commitmentShorter, varied stopsAbout 3 hours (≈2.5 hrs on water)Departure pointExcursion Hub (short walk)Excursion Hub → harbor transferGuaranteeNo formal whale guaranteeSome offer a defined sighting refund

Scenic Drives and Photo Stops You’ll Love

The road is part of the experience—open shoreline views, moody forest light, and planned pull‑offs where you can breathe and compose.

Coastal viewpoints for classic Alaska shoreline shots

Headlands, long sea horizons, rocky beaches, and eagle fly‑bys. Bring the wider lens. If you’re chasing eagles specifically, ask about an Icy Strait Hoonah AK Eagle Tour focus—we’ll tune stops for raptors when they’re working.

Misty rainforest backdrops made for wildlife photography

Soft light through big trees is Alaska’s secret portrait studio. Birds and deer against moss—yep, that cinematic stuff you expected.

Quick stops timed for lighting, sightings, and comfort

Pull‑offs where the footing is decent, angles are clean, and the breeze doesn’t chew your hands. We keep it simple, so you shoot more and fumble less.

FeatureWhy it mattersVisitor benefitPlanned pull‑offsTimed for light and sightingsBetter photos, less rushCoastal viewpointsWide sea vistas and rock linesClassic shoreline framesRainforest backdropsSoft light, textured foregroundsMoody wildlife portraits

Your Tour Day Timeline: Built Around Cruise Ship Schedules

Ship‑aware timing turns a busy port call into a smooth, camera‑ready outing. We stage vans early at the Icy Strait Excursion Hub and return you with time to spare—every time.

If your ship can’t make port, operators here typically offer straightforward refunds or alternatives. Our aim is zero‑stress logistics and clear expectations.

StepWhat happensBenefit to youCheck‑inMeet at Excursion Hub (short walk)Simple start without confusionMonitoringWe track cruise ship updatesDepartures adjust for delaysRefund protectionFull refund if the ship misses the portNo penalty, peace of mindReturn planningTours end well before boardingBack with time to spare

Where to Meet Depending on Your Dock

Clear signage and short paths get you there fast. Follow posted routes, and you won’t wander.

If you arrive at Adventure Dock

Walk the ramp to the Adventure Center, move straight through, exit Door #2, and follow the signs to the Excursions Hub.

If you arrive at Wilderness Dock

Ride the gondola (≈4 minutes) to the Adventure Center area, then follow signs to the same Hub. Both docks funnel to one meet‑up, easy.

DockMain stepsApprox. timeAdventure DockRamp → Adventure Center → Exit Door #2 → Follow signs5–10 minutesWilderness DockWalk to Gondola → 4‑min ride → Follow signs8–15 minutes (incl. wait)All visitorsCheck in at Excursions HubPlan a small buffer

What to Wear and Bring for Hoonah Weather

Weather flips. Layers win. Think simple: base tee, warm mid layer, truly waterproof shell. Sturdy shoes beat fancy sneakers on damp gravel.

Layering basics for a temperate rainforest day

Base tee: breathable cotton or synthetic that dries quickly
Mid layer: light fleece or wool for wind bumps
Outer shell: taped seams; actual waterproofing, not “fashion waterproof.”

Footwear and rain gear, you’ll be glad you packed

Closed‑toe, good‑grip shoes; pull‑offs get slick when wet
Small day bag; don’t sprint back to the ship mid‑tour
Dry pouch for phone/camera, lens cloth, light gloves, beanie

If you’re two people looking to keep it easy and flexible, this doubles nicely as an Icy Strait Hoonah AK Couple Tour—layers packed, cameras ready, done.

Ways to Customize Your Icy Strait Adventure

Stack a calm land route with optional time on the sea—maximize wildlife chances without risking ship time. That’s the sweet spot.

Add a dedicated whale watching

Go farther, longer, and stay with bait lines. Want to keep the land piece simple and wildlife-forward? Many guests frame it as an Icy Strait Hoonah AK Wildlife Tour on shore, then jump to whales.

Upgrade to halibut fishing

Local captains (including a born‑and‑raised Tlingit skipper) run halibut and salmon trips. Know current rules before booking; Tuesdays sometimes mean special retention limits.

Choose kayaking for quiet wildlife viewing

Port Frederick by paddle is slow, peaceful, and perfect for cameras—eagles overhead, seals curious at a distance, and the odd humpback rolling like a bus just… there.

If you’re planning something just‑for‑two, you can lean into an Icy Strait of Hoonah AK, Couple Tour feel on land, then add a compact kayak block—best of both.

Conclusion

Cap your day ashore with a practical, photo‑friendly drive that keeps you close to the harbor and back to the ship on time. This short tour fits a cruise schedule, gives gallery‑ready stops, and still returns you with a buffer. You’re in bear country near Icy Strait—and summer waters can bring whales into view from shore. For a personal, locally run option instead of a mass bus, book early; small‑group seats go fast.

Traveling as a duo? That’s an easy icy strait hoonah ak Couple Tour fit. Eyeing a bear‑focused run? Consider the land‑based icy Strait Hoonah Ak Bear Tour approach. Bringing more people? Wilderness Island Tours, LLC tunes the day like an Icy Strait Hoonah AK Group Tour so everyone gets the view without the crowd.

FAQ

What should I expect on the scenic drives and photo stops?

Short drives through coastal rainforest and shoreline lookouts with planned photo windows—step out, shoot, get back on the road without the “hurry up and wait” feeling.

How small are the groups, and why does that matter?

Intentionally small. Better sight lines, calmer stops, and more time for your questions. It simply feels more personal.

When is humpback whale season, and where do we go to see them?

May–September is prime. Point Adolphus and nearby waters concentrate whales when currents tighten bait—classic surface activity days.

Are whale-watching trips guaranteed to find whales?

Some boats offer a “guarantee” with a defined refund/credit window. Land days have no formal guarantee—we focus on honest odds and smart routing.

Can I combine whale watching with fishing or a kayak trip?

Yes. Many shore plans let you add halibut/salmon fishing or a quiet paddle in Port Frederick.

How do you spot brown bears, and where are they most common?

We follow sign and food first: tracks, tidal grasses, berries, salmon. Chichagof’s density makes sightings possible from safe roadside setups. For couples excited about bears, a calm, simple, Icy Strait Hoonah ak Couple Tour with bear focus works nicely.

What safety measures are used for bear and whale viewing?

Distance rules, designated viewing, and clear instructions. On water, captains follow federal marine mammal approach rules—no squeezing animals for a closer look.

Where do I meet the tour from my cruise ship?

Excursion Hub near the port. From Adventure Dock: through the Adventure Center and out Door #2. From Wilderness Dock: gondola to the Adventure Center, then follow signs. Easy.

What if my ship is delayed or the weather changes?

Schedules flex for common delays; weather calls are communicated early. Operator‑initiated cancellations typically mean rebooking or a refund option.

What should I wear and bring for a shore excursion and possible boat time?

Layer up: breathable tee, warm mid, true waterproof shell; sturdy footwear; sun protection; binoculars/camera. If boats are in your plan, bring motion help if you need it.

Are tours accessible for guests with mobility limitations?

Short walks and a step‑up into the van are standard; boat add‑ons have tide‑dependent ramps. Contact the operator in advance for accommodations.

How long will I be away from my cruise ship, and will I return on time?

We build in a buffer so you’re back well before boarding. That rhythm is the difference between a relaxed day and a rushed one.

What wildlife might I see besides whales and bears?

Bald eagles, sea lions, sea otters, harbor seals, Sitka black‑tailed deer, and more. If you’re pairing up and want a broad, photo‑forward plan, the land route makes a great a Wildlife Tour all on its own.

Can I increase my chances of seeing bears per square mile during the trip?

While you can’t control wildlife, we target high‑density areas and seasonal hotspots to improve your odds. Salmon runs, tides, and daily bear activity set the table—our job is reading it right.

German American Bancorp, Inc. (GABC) Reports Record Fourth Quarter and Strong Annual 2025 Earnings; Declares 7% Cash Dividend Increase

Business Wire on February 5, 2026

German American Bancorp, Inc. (Nasdaq: GABC) (“German American” or the “Company”) reported record earnings for the three months ended December 31, 2025. The Company also announced a 7% increase in its regular quarterly cash dividend, as its Board of Directors declared a regular quarterly cash dividend of $0.31 per share, which will be payable on February 20, 2026 to shareholders of record as of February 10, 2026.

For the three months ended December 31, 2025, the Company reported net income of $35.7 million, or $0.95 per share, reflecting a linked quarter increase of $0.7 million, or approximately 1% on a per share basis, from previous record third quarter 2025 net income of $35.1 million, or $0.94 per share. The Company also reported strong annual net income of $112.6 million, or $3.06 per share, for the year ended December 31, 2025, reflecting a year-over-year increase of $28.8 million, or approximately 8% on a per share basis, from year end December 31, 2024 net income of $83.8 million, or $2.83 per share.

On an adjusted basis*, net income for the three months ended December 31, 2025 was $35.9 million, or $0.96 per share, reflecting a linked quarter increase of $1.5 million, or approximately 4.4% on a per share basis, from previous third quarter net income of $34.4 million, or $0.92 per share. On an adjusted basis*, net income for the year ended December 31, 2025 was $129.7 million, or $3.52 per share, reflecting a year-over-year increase of $45.9 million, or approximately 24% on a per share basis, from year end December 31, 2024.

Profitability and capital measures remained strong as ROAA for the fourth quarter of 2025 was 1.67% (1.68% as adjusted*) and ROATCE was 19.5% (19.6% as adjusted*). These compared to ROAA of 1.68% (1.65% as adjusted*) and ROATCE of 21.1% (20.8% as adjusted*) in the third quarter of 2025.

___________________________________________

* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Fourth Quarter 2025 highlights include:

Robust net interest margin of 4.13%
- 7 basis point increase from third quarter 2025
- 14 basis point reduction in funding costs and 7 basis point decrease in earning asset yields
Strong increase in loan balances during the quarter
- End of period loans increased $97 million, or approximately 7% on an annualized basis, with growth coming from all commercial and agriculture categories, as well as consumer-home equity lines
Slight decrease in deposits quarter over linked quarter
- Non-interest bearing deposits increased approximately 1.5% on an annualized linked quarter basis and represented 28% of total deposits
- Interest bearing demand, savings and money market accounts increased approximately 4.5% on an annualized linked quarter basis
- These transactional deposit increases were offset by managed run-off of higher cost retail and jumbo time deposits
Excluding the effects of a $283,000 non-recurring loss on the redemption of subordinated debt on December 30, 2025 and a $975,000 non-recurring gain on the redemption of subordinated debt in the third quarter of 2025, non-interest income remained stable in the fourth quarter 2025, led by an increase of $231,000, or 5%, in wealth management fees
Stable non-interest expenses of $49.9 million
- Strong efficiency ratio* of 48.55% for the fourth quarter
- Quarter over linked quarter increase in salaries and benefits of approximately 8.5%, driven by incentive compensation tied to record earnings performance, was offset by broad-based cost reductions in all other remaining expense categories
Total allowance for credit losses was $77.7 million, with total quarterly provision expense of $2.2 million as credit metrics remained healthy
- Ratio of allowance to total loans of 1.32%
- Annualized net charge offs remained minimal at 4 basis points of average loans
- Non-performing assets were slightly elevated at 0.35% of period end assets compared to third quarter of 0.28%. The increase was mostly driven by two acquired credits that were adversely classified at acquisition and have subsequently been placed on non-accrual status
Capital ratios remained strong
- TCE* of 9.44 %
- Tangible book value per share of $20.08; 6.3% increase from linked quarter September 30, 2025
- The Company announced a 7% increase to its quarterly cash dividend, making it the 14^th consecutive year of increased cash dividends reflecting the Company’s strong operations and healthy capital position

D. Neil Dauby, Chairman and CEO of German American stated, “We are extremely pleased to deliver yet another record quarterly earnings performance for the fourth quarter 2025 and for the year ended December 31, 2025. We have great positive momentum as we head into 2026 and are excited about the long-term potential in connection with a normalizing yield curve and our strong diversified organic growth footprint.”

Dauby also stated, “We continue to add top talent to our relationship-focused team of professionals, and with their dedicated efforts, we are confident that our strong community presence, healthy financial condition and disciplined approach to growth will continue to drive future profitability and long-term shareholder value. We remain excited and committed to the vitality and future growth of our Indiana, Kentucky and Ohio communities.”

Balance Sheet Highlights

On February 1, 2025, the Company completed its acquisition of Heartland BancCorp (“Heartland”) through the merger of Heartland with and into the Company. Immediately following completion of the Heartland holding company merger, Heartland’s subsidiary bank, Heartland Bank, was merged with and into the Company’s subsidiary bank, German American Bank (the “Bank”). Heartland, headquartered in Whitehall, Ohio, operated 20 retail banking offices located in Columbus, Ohio and Greater Cincinnati. As of the closing of the transaction, Heartland had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion. The Company issued approximately 7.74 million shares of its common stock, and paid approximately $23.1 million in cash, in exchange for all of the issued and outstanding shares of common stock of Heartland and in cancellation of all options to acquire Heartland common stock outstanding as of the effective time of the merger.

Total assets for the Company totaled $8.389 billion at December 31, 2025, representing a decline of $12.5 million compared with September 30, 2025 and an increase of $2.093 billion compared with December 31, 2024. The increase in total assets at December 31, 2025 compared with December 31, 2024 was, in large part, attributable to the Heartland acquisition, with continued organic loan growth also contributing to the increase.

December 31, 2025 total loans increased $96.8 million, or 7% on an annualized basis, compared with September 30, 2025 and increased $1.751 billion compared with December 31, 2024. The increase during the fourth quarter of 2025 compared with September 30, 2025 was broad-based across most segments of the portfolio and throughout the Company’s footprint. Commercial and industrial loans increased $33.0 million, or 16% on an annualized basis, commercial real estate loans increased $39.3 million, or 5% on an annualized basis, and agricultural loans reflected a seasonal increase of $16.4 million, or 14% on an annualized basis. Retail loans grew by $8.2 million, or 2% on an annualized basis, due in large part to strong home equity loan originations, which were partially offset by a reduced level of residential mortgage loans. The increase at December 31, 2025 compared with December 31, 2024 was largely due to the acquisition of Heartland in addition to continued organic loan growth throughout the Company’s existing market areas. Excluding loans acquired through the Heartland acquisition, total loans increased $261.9 million, or 6%, during 2025.

The composition of the loan portfolio has remained relatively stable and diversified over the past several years. The addition of the Heartland loan portfolio resulted in only modest changes to the overall portfolio composition, most notably in the residential mortgage loan segment. The portfolio is most heavily weighted in commercial real estate loans at 53% of the portfolio, followed by commercial and industrial loans at 14% of the portfolio, residential mortgage loans at 13% of the portfolio (up from 9% at December 31, 2024), agricultural loans at 8% of the portfolio, and home equity loans at 8% of the portfolio. The Company’s commercial lending is extended to various industries, including multi-family housing and lodging, agribusiness and manufacturing, as well as health care, wholesale, and retail services.

End of Period Loan Balances	12/31/2025		9/30/2025		12/31/2024
(dollars in thousands)

Commercial & Industrial Loans	$	848,240	$	815,222	$	671,038
Commercial Real Estate Loans		3,142,472		3,103,181		2,224,872
Agricultural Loans		489,168		472,807		431,037
Consumer Loans		630,015		603,742		448,872
Residential Mortgage Loans		774,553		792,670		357,448
	$	5,884,448	$	5,787,622	$	4,133,267

The Company’s allowance for credit losses totaled $77.7 million at December 31, 2025 compared to $76.1 million at September 30, 2025 and $44.4 million at December 31, 2024. The allowance for credit losses represented 1.32% of period-end loans at both December 31, 2025 and September 30, 2025 and 1.08% of period-end loans at December 31, 2024.

The Company added $32.7 million to the allowance for credit losses in conjunction with the closing of the Heartland acquisition on February 1, 2025, related to the Heartland loan portfolio. Of the increase in the allowance for credit losses for the Heartland portfolio, $16.2 million was recorded through the “Day 2” provision for credit losses under the CECL model. In a transaction like the Heartland merger, the current accounting rules require the acquirer to recognize an allowance for credit losses in the period of acquisition for both purchased credit deterioration (“PCD”) assets and non-PCD assets. The determination of PCD versus non-PCD determines how the allowance for credit loss flows through the financial statements. For PCD assets, the gross-up method includes the impact in the “Day 1” business combination entries with no impact to expense. For non-PCD assets, the impact is reflected outside of the business combination entries (sometimes referred to as “Day 2”) and is reflected in expense.

Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of December 31, 2025, the Company held net discounts on acquired loans of $52.8 million, which included $50.7 million related to the Heartland loan portfolio.

Non-performing assets totaled $29.5 million at December 31, 2025, $23.7 million at September 30, 2025, and $11.1 million at December 31, 2024. Non-performing assets represented 0.35% of total assets at December 31, 2025, 0.28% at September 30, 2025 and 0.18% at December 31, 2024. Non-performing loans represented 0.50% of total loans at December 31, 2025, 0.41% at September 30, 2025, and 0.27% at December 31, 2024.

The increase in non-performing assets during the fourth quarter of 2025 was largely related to two commercial relationships acquired in the Heartland transaction. The relationships were identified as adversely classified at the time of acquisition and have subsequently been placed on non-accrual status. The overall increase in non-performing assets at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition with non-performing assets from the Heartland acquisition totaling approximately $18.6 million at year-end 2025.

Non-performing Assets
(dollars in thousands)
	12/31/2025		9/30/2025		12/31/2024
Non-Accrual Loans	$	29,319	$	23,676	$	10,934
Past Due Loans (90 days or more)		92		—		188
Total Non-Performing Loans		29,411		23,676		11,122
Other Real Estate		68		48		—
Total Non-Performing Assets	$	29,479	$	23,724	$	11,122

December 31, 2025 total deposits declined $24.8 million, or 1% on an annualized basis, compared to September 30, 2025 and increased $1.661 billion compared with December 31, 2024. The increase in total deposits at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition. As of December 31, 2025, deposits from the Heartland acquisition totaled $1.559 billion.

The addition of the Heartland deposit portfolio did not result in significant changes to the overall deposit portfolio composition. Notably, non-interest bearing deposits have remained relatively stable as a percent of total deposits at approximately 28% at both December 31, 2025 and September 30, 2025, and 26% at year-end 2024.

End of Period Deposit Balances	12/31/2025		9/30/2025		12/31/2024
(dollars in thousands)

Non-interest-bearing Demand Deposits	$	1,944,831	$	1,938,522	$	1,399,270
IB Demand, Savings, and MMDA Accounts		3,755,374		3,714,191		3,013,204
Time Deposits < $100,000		475,943		502,548		327,080
Time Deposits > $100,000		813,594		859,241		589,521
	$	6,989,742	$	7,014,502	$	5,329,075

At December 31, 2025, the capital levels for the Company and the Bank remained well in excess of the minimum amounts needed for capital adequacy purposes and the Bank’s capital levels met the necessary requirements to be considered well-capitalized.

	12/31/2025 Ratio		9/30/2025 Ratio		12/31/2024 Ratio
Total Capital (to Risk Weighted Assets)
Consolidated	14.93	%	15.07	%	17.15	%
Bank	13.80	%	14.00	%	15.02	%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated	14.04	%	13.83	%	15.72	%
Bank	12.91	%	13.10	%	14.23	%
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets)
Consolidated	13.52	%	13.30	%	15.02	%
Bank	12.91	%	13.10	%	14.23	%
Tier 1 Capital (to Average Assets)
Consolidated	11.54	%	11.40	%	12.28	%
Bank	10.61	%	10.80	%	11.12	%

Results of Operations Highlights – Year ended December 31, 2025

Net income for the year ended December 31, 2025 totaled $112,635,000, or $3.06 per share, an increase of $28,824,000, or approximately 8% on a per share basis, from the year ended December 31, 2024 net income of $83,811,000, or $2.83 per share. The year ended December 31, 2025 results of operations included Heartland acquisition-related expenses of $6,996,000 ($5,418,000, on an after-tax basis) and the “Day 2” provision for credit losses under the CECL model of $16,200,000 ($12,150,000, on an after-tax basis), as well as a net gain on the redemption of subordinated debentures.

Net income for the year end December 31, 2024 included the sale of the assets of the Company’s wholly owned subsidiary German American Insurance, Inc. (“GAI”) in the second quarter of 2024, which resulted in an after-tax gain, net of transaction costs, of approximately $27,476,000, or $0.93 per share, and a partial securities portfolio restructuring transaction, also in the second quarter of 2024, resulting in an after-tax loss of $27,189,000, or $0.92 per share.

On an adjusted basis, net income for the year ended December 31, 2025 was $129,684,000, or $3.52 per share, compared with adjusted net income of $83,839,000, or $2.83 per share, for the year ended December 31, 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
	Year Ended December 31, 2025						Year Ended December 31, 2024

	Principal Balance		Income/ Expense		Yield/Rate		Principal Balance		Income/ Expense		Yield/Rate
Assets
Federal Funds Sold and Other
Short-term Investments	$	250,520	$	10,817	4.32	%	$	151,907	$	7,697	5.07	%
Securities		1,598,251		54,299	3.40	%		1,534,433		47,496	3.10	%
Loans and Leases		5,604,879		360,410	6.43	%		4,035,670		241,344	5.98	%
Total Interest Earning Assets	$	7,453,650	$	425,526	5.71	%	$	5,722,010	$	296,537	5.19	%

Liabilities
Demand Deposit Accounts	$	1,851,978					$	1,420,412

IB Demand, Savings, and MMDA Accounts	$	3,733,503	$	65,877	1.76	%	$	3,012,073	$	54,303	1.80	%
Time Deposits		1,329,638		49,215	3.70	%		872,429		36,319	4.16	%
FHLB Advances and Other Borrowings		215,334		10,865	5.05	%		196,480		9,830	5.00	%
Total Interest-Bearing Liabilities	$	5,278,475	$	125,957	2.39	%	$	4,080,982	$	100,452	2.46	%

Cost of Funds					1.69	%					1.76	%
Net Interest Income, Tax-Equivalent Basis*			$	299,569					$	196,085
Net Interest Margin					4.02	%					3.43	%

___________________________________________

During the year ended December 31, 2025, net interest income, on a non tax-equivalent basis, totaled $294,132,000, an increase of $103,541,000, or 54%, compared to the year ended December 31, 2024 net interest income of $190,591,000. The increase in net interest income for 2025 compared with 2024 was primarily attributable to a higher level of earning assets driven by the Heartland acquisition and an improvement of the Company’s net interest margin.

The tax equivalent net interest margin for the year ended December 31, 2025 was 4.02% compared with 3.43% for the year ended December 31, 2024. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during 2025 compared with 2024 was the result of improved yields on earning assets (including both loan and security yields) and a lower cost of deposits. The lower cost of deposits was largely driven by the Federal Reserve’s lowering of the Federal Funds rates over the last several months of 2024 and again in the latter months of 2025, and the Company’s ability to correspondingly lower deposit costs.

The Company’s net interest margin and net interest income in both 2025 and 2024 have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $15,556,000 during the year ended December 31, 2025 and $1,507,000 during the same period of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin during 2025 and 3 basis points during 2024.

During the year ended December 31, 2025, the Company recorded a provision for credit losses of $19,425,000, as compared to the provision for credit losses of $2,775,000 recorded for the year ended December 31, 2024. The first quarter of 2025 included a provision for credit losses of $16,200,000 related to the “Day 2” adjustment for the Heartland acquisition.

During the year ended December 31, 2025, non-interest income increased $4,652,000, or 7%, compared with the year ended December 31, 2024. The increase during 2025 compared to 2024 was largely the result of the Heartland acquisition combined with an improvement in the Company’s existing fee revenue sources. The year ended December 31, 2024 included the previously mentioned sale of the GAI assets and the securities portfolio restructuring transaction, which each occurred during the second quarter of 2024. On an adjusted basis, non-interest income for the year ended December 31, 2025 was $66,620,000 compared to $54,691,000 for the same period of 2024. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” section in this Management’s Discussion and Analysis for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

	Year Ended		Year Ended
Non-interest Income	12/31/2025		12/31/2024
(dollars in thousands)

Wealth Management Fees	$	16,808	$	14,416
Service Charges on Deposit Accounts		15,083		12,669
Insurance Revenues		—		4,384
Company Owned Life Insurance		2,555		2,058
Interchange Fee Income		19,598		17,125
Sale of Assets of German American Insurance		—		38,323
Other Operating Income		8,758		5,419
Subtotal		62,802		94,394
Net Gains on Sales of Loans		4,510		3,054
Net Gains on Securities		—		(34,788	)
Total Non-interest Income	$	67,312	$	62,660

Wealth management fees increased $2,392,000, or 17%, during 2025 compared with 2024. The increase during the year ended December 31, 2025 compared with the same period of 2024 was largely attributable to increased assets under management, driven by healthy capital markets throughout 2024 and 2025, and continued strong new business results in addition to the Heartland acquisition.

Service charges on deposit accounts increased $2,414,000, or 19%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.

No insurance revenues were recognized during the year ended December 31, 2025 due to the sale of the GAI assets effective June 1, 2024. As a result, insurance revenues declined $4,384,000 during 2025, compared with 2024. As previously discussed, the sale of substantially all of the assets of GAI in June 2024 resulted in net proceeds of $38,323,000.

Interchange fees increased $2,473,000, or 14%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was largely attributable to the Heartland acquisition.

During the year ended December 31, 2025, other operating income increased $3,339,000, or 62%, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition.

Net gains on sales of loans increased $1,456,000, or 48%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $193.2 million during 2025 compared with $130.7 million during 2024.

There were no securities transactions during 2025 that resulted in net gains or losses. The net loss on securities during 2024 totaled $34,788,000 which was primarily related to the net loss recognized on the securities restructuring transaction.

During the year ended December 31, 2025, non-interest expense totaled $201,949,000, an increase of $55,572,000, or 38%, compared with the same period of 2024. The primary drivers of the increased operating expenses in 2025 compared with 2024 were the Heartland operating costs and acquisition-related costs.

Each period presented included Heartland acquisition-related expenses, with such amounts being $6,996,000 for the year ended December 31, 2025 and $1,370,000 for the same period of 2024. The year ended December 31, 2024 also included non-recurring professional fees and other costs associated with the GAI asset sale that totaled approximately $1,816,000.

On an adjusted basis, non-interest expense for the year ended December 31, 2025 was $194,953,000 compared to $139,777,000 for the same period of 2024. Adjusted non-interest expense is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

	Year Ended		Year Ended
Non-interest Expense	12/31/2025		12/31/2024
(dollars in thousands)

Salaries and Employee Benefits	$	107,742	$	82,257
Occupancy, Furniture and Equipment Expense		19,634		14,944
FDIC Premiums		3,800		2,908
Data Processing Fees		17,579		12,243
Professional Fees		10,418		8,147
Advertising and Promotion		5,153		3,939
Intangible Amortization		10,148		2,032
Other Operating Expenses		27,475		19,907
Total Non-interest Expense	$	201,949	$	146,377

Salaries and benefits increased $25,485,000, or 31%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase in 2025 compared with 2024 was due primarily to the salaries and benefits costs for the Heartland employee base.

Occupancy, furniture and equipment expense increased $4,690,000, or 31%, during the year ended December 31, 2025 compared to the year ended December 30, 2024. The increase during 2025 compared with 2024 was primarily attributable to the operating costs of the Heartland branch network.

Data processing fees increased $5,336,000, or 44%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was largely driven by the Heartland acquisition including operating costs of the existing Heartland systems and acquisition-related costs.

Professional fees increased $2,271,000, or 28%, during the year ended December 31, 2025 compared with 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition and technology support services.

Intangible amortization increased $8,116,000, or 399%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was attributable to the Heartland acquisition.

Other operating expenses increased $7,568,000, or 38%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was largely attributable to the operating costs of Heartland.

Results of Operations Highlights – Quarter ended December 31, 2025

Net income for the quarter ended December 31, 2025 totaled $35,683,000, or $0.95 per share, an increase of 1% on a per share basis compared with the third quarter 2025 net income of $35,074,000, or $0.94 per share, and an increase of 22% on a per share basis compared with the fourth quarter 2024 net income of $23,211,000, or $0.78 per share.

On an adjusted basis, net income for the fourth quarter of 2025 was $35,895,000, or $0.96 per share, compared with adjusted net income of $34,444,000, or $0.92 per share, for the third quarter of 2025, and $23,419,000, or $0.79 per share, for the fourth quarter of 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
	Quarter Ended						Quarter Ended						Quarter Ended
	December 31, 2025						September 30, 2025						December 31, 2024

	Principal Balance		Income/ Expense		Yield/ Rate		Principal Balance		Income/ Expense		Yield/ Rate		Principal Balance		Income/ Expense		Yield/ Rate
Assets
Federal Funds Sold and Other
Short-term Investments	$	260,338	$	2,585	3.94	%	$	187,648	$	2,084	4.41	%	$	238,883	$	2,792	4.65	%
Securities		1,649,499		13,890	3.37	%		1,584,261		13,622	3.44	%		1,545,772		12,579	3.26	%
Loans and Leases		5,828,461		94,442	6.44	%		5,766,875		93,664	6.45	%		4,094,333		62,356	6.06	%
Total Interest Earning Assets	$	7,738,298	$	110,917	5.70	%	$	7,538,784	$	109,370	5.77	%	$	5,878,988	$	77,727	5.27	%

Liabilities
Demand Deposit Accounts	$	1,948,794					$	1,912,208					$	1,422,400

IB Demand, Savings, and MMDA Accounts	$	3,828,648	$	15,745	1.63	%	$	3,753,235	$	17,086	1.81	%	$	3,058,257	$	13,638	1.77	%
Time Deposits		1,335,506		12,268	3.64	%		1,330,944		12,330	3.68	%		911,613		9,235	4.03	%
FHLB Advances and Other Borrowings		219,970		2,648	4.78	%		216,460		2,956	5.42	%		214,915		2,650	4.91	%
Total Interest-Bearing Liabilities	$	5,384,124	$	30,661	2.26	%	$	5,300,639	$	32,372	2.42	%	$	4,184,785	$	25,523	2.43	%

Cost of Funds					1.57	%					1.71	%					1.73	%
Net Interest Income, Tax-Equivalent Basis*			$	80,256					$	76,998					$	52,204
Net Interest Margin					4.13	%					4.06	%					3.54	%

___________________________________________

During the fourth quarter of 2025, net interest income, on a non tax-equivalent basis, totaled $78,680,000, an increase of $2,955,000, or 4%, compared to the third quarter of 2025 net interest income of $75,725,000 and an increase of $27,648,000, or 54%, compared to the fourth quarter of 2024 net interest income of $51,032,000.

The increase in net interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily driven by improvement in the Company’s net interest margin along with continued growth of earning assets. The increase in net interest income during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to a higher level of average earning assets driven in large part by the Heartland acquisition and improvement of the Company’s net interest margin.

The tax equivalent net interest margin for the quarter ended December 31, 2025 was 4.13% compared with 4.06% in the third quarter of 2025 and 3.54% in the fourth quarter of 2024. The continued improvement in the net interest margin during the fourth quarter of 2025 compared with the third quarter of 2025 was driven by a lower cost of funds, primarily attributable to lower deposit costs. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely driven by an improved yield on earning assets (including both loan and security yields) and a lower cost of deposits.

The Company’s net interest margin and net interest income in all periods presented have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $3,966,000 during the fourth quarter of 2025, $3,914,000 during the third quarter of 2025, and $617,000 during the fourth quarter of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin in the both the third and fourth quarters of 2025 and 4 basis points in the fourth quarter of 2024.

During the quarter ended December 31, 2025, the Company recorded a provision for credit losses of $2,225,000 compared with a provision for credit losses of $700,000 in the third quarter of 2025 and a provision for credit losses of $625,000 during the fourth quarter of 2024. Net charge-offs totaled $588,000, or 4 basis points on an annualized basis, of average loans outstanding during the fourth quarter of 2025 compared with $748,000, or 5 basis points on an annualized basis, of average loans during the third quarter of 2025 and $313,000, or 3 basis points on an annualized basis, of average loans during the fourth quarter of 2024.

During the quarter ended December 31, 2025, non-interest income totaled $17,310,000, a decline of $1,119,000, or 6%, compared with the third quarter of 2025 and an increase of $3,196,000, or 23%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by a $283,000 loss on the extinguishment of debt resulting from the redemption of $40.0 million of the Company’s fixed-to-floating rate subordinated notes during the fourth quarter of 2025 and a $975,000 gain on the extinguishment of debt resulting from the redemption of $24.3 million of fixed-to-floating rate subordinated notes during the third quarter of 2025. The increase during the fourth quarter of 2025 compared to the same period of 2024 was largely the result of the Heartland acquisition and improvement of the Company’s existing fee revenue generation.

Excluding the loss and gain on the extinguishment of debt discussed above, non-interest income on an adjusted basis for the fourth quarter of 2025 was $17,593,000 and $17,454,000 for the third quarter of 2025. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

	Quarter Ended		Quarter Ended		Quarter Ended
Non-interest Income	12/31/2025		9/30/2025		12/31/2024
(dollars in thousands)

Wealth Management Fees	$	4,519	$	4,288	$	3,687
Service Charges on Deposit Accounts		3,956		3,927		3,344
Insurance Revenues		—		—		—
Company Owned Life Insurance		647		630		616
Interchange Fee Income		5,033		5,087		4,244
Sale of Assets of German American Insurance		—		—		—
Other Operating Income		2,046		3,308		1,593
Subtotal		16,201		17,240		13,484
Net Gains on Sales of Loans		1,109		1,189		630
Net Gains (Losses) on Securities		—		—		—
Total Non-interest Income	$	17,310	$	18,429	$	14,114

Wealth management fees increased $231,000, or 5%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $832,000, or 23%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the third quarter of 2025 was largely attributable to strong new business growth resulting in increased assets under management. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was also largely attributable to increased assets under management driven by healthy capital markets throughout 2024 and much of 2025, and continued strong new business results in addition to the Heartland acquisition.

Service charges on deposit accounts remained relatively stable, increasing 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $612,000, or 18%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.

Interchange fees remained relatively stable, declining 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $789,000, or 19%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely attributable to the Heartland acquisition.

Other operating income declined $1,262,000, or 38%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $453,000, or 28%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by the previously discussed $283,000 loss on the extinguishment of debt during the fourth quarter of 2025 and the $975,000 gain on the extinguishment of debt during the third quarter of 2025.

Net gains on sales of loans declined $80,000, or 7%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $479,000, or 76%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $48.2 million during the fourth quarter of 2025 compared with $55.5 million during the third quarter of 2025 and $33.5 million during the fourth quarter of 2024.

During the quarter ended December 31, 2025, non-interest expense totaled $49,950,000, an increase of $250,000, or less than 1%, compared with the third quarter of 2025, and an increase of $14,110,000, or 39%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the operating costs associated with the Heartland acquisition.

	Quarter Ended		Quarter Ended		Quarter Ended
Non-interest Expense	12/31/2025		9/30/2025		12/31/2024
(dollars in thousands)

Salaries and Employee Benefits	$	27,620	$	25,444	$	20,404
Occupancy, Furniture and Equipment Expense		4,965		5,255		3,773
FDIC Premiums		953		1,059		714
Data Processing Fees		3,823		4,175		3,257
Professional Fees		2,162		1,960		1,178
Advertising and Promotion		1,078		1,321		951
Intangible Amortization		2,582		2,693		438
Other Operating Expenses		6,767		7,793		5,124
Total Non-interest Expense	$	49,950	$	49,700	$	35,839

Salaries and benefits increased $2,176,000, or 9%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $7,216,000, or 35%, compared with the fourth quarter of 2024. The increase in salaries and benefits during the fourth quarter of 2025 compared with the third quarter of 2025 was attributable to an increased incentive compensation cost and health insurance costs. The increase in the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely due to the salaries and benefits costs for the Heartland employee base as well as increased incentive compensation plan costs.

Occupancy, furniture and equipment expense declined $290,000, or 6%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,192,000, or 17%, compared to the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to the operating costs of the Heartland branch network.

Data processing fees declined $352,000, or 8%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $566,000, or 32%, compared with the third quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily related to non-recurring elevated costs in the third quarter of 2025. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by operating costs associated with the Heartland acquisition and continued enhancements to existing data systems and processes.

Professional fees increased $202,000, or 10%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $984,000, or 84%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by the Heartland acquisition and technology support services.

Intangible amortization declined $111,000, or 4%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $2,144,000, or 490%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was attributable to the Heartland acquisition.

Other operating expenses declined $1,026,000, or 13%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,643,000, or 32%, compared with the fourth quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was largely the result of a decline in amortization expense for residential mortgage servicing rights and a reduction of reserves related to unfunded loan commitments. The increase in the fourth quarter of 2025 compared to the fourth quarter of 2024 was largely attributable to operating costs of Heartland.

About German American

German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 94 banking offices located throughout Indiana (central/southern), Kentucky (northern/central/western), and Ohio (central/ southwest). In Columbus, Ohio and Greater Cincinnati, the Company does business as Heartland Bank, a Division of German American Bank. The Company also owns an investment brokerage subsidiary, German American Investment Services, Inc.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions.

Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in this press release. Factors that could cause actual experience to differ from the expectations expressed or implied in this press release include:

a.	changes in interest rates and the timing and magnitude of any such changes;
b.	unfavorable economic conditions, including a prolonged period of inflation, and the resulting adverse impact on, among other things, credit quality;
c.	the soundness of other financial institutions and general investor sentiment regarding the stability of financial institutions;
d.	changes in our liquidity position;
e.	the impacts of epidemics, pandemics or other infectious disease outbreaks;
f.	changes in competitive conditions;
g.	the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies;
h.	changes in customer borrowing, repayment, investment and deposit practices;
i.	changes in fiscal, monetary and tax policies;
j.	changes in financial and capital markets;
k.	capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by German American of outstanding debt or equity securities;
l.	risks of expansion through acquisitions and mergers, including the possibility that the anticipated cost savings and strategic gains, are not realized when expected or at all as a result of unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base or employee base of the acquired institution or branches, and difficulties in integration of the acquired operations;
m.	factors driving credit losses on investments;
n.	the impact, extent and timing of technological changes;
o.	potential cyber-attacks, information security breaches and other criminal activities;
p.	litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future;
q.	actions of the Federal Reserve Board;
r.	changes in accounting principles and interpretations;
s.	potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to German American’s banking subsidiary;
t.	actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms;
u.	impacts resulting from possible amendments or revisions to the Dodd-Frank Act and the regulations promulgated thereunder, or to Consumer Financial Protection Bureau rules and regulations;
v.	the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends;
w.	changes to the fair value estimates used by German American in accounting for its acquisition of Heartland, which preliminary valuations must be finalized no later than January 31, 2026; and
x.	other risk factors expressly identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents subsequently filed by German American with the SEC.

Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of German American. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

	December 31, 2025			September 30, 2025			December 31, 2024
ASSETS
Cash and Due from Banks	$	71,428		$	112,718		$	69,249
Short-term Investments		47,454			143,430			120,043
Investment Securities		1,657,747			1,618,370			1,517,640

Loans Held-for-Sale		7,817			10,058			8,239

Loans, Net of Unearned Income		5,875,097			5,778,505			4,124,902
Allowance for Credit Losses		(77,694	)		(76,057	)		(44,436	)
Net Loans		5,797,403			5,702,448			4,080,466

Stock in FHLB and Other Restricted Stock		17,688			17,856			14,423
Premises and Equipment		139,001			139,850			104,045
Goodwill and Other Intangible Assets		409,260			411,656			183,043
Other Assets		240,982			244,862			198,762
TOTAL ASSETS	$	8,388,780		$	8,401,248		$	6,295,910

LIABILITIES
Non-interest-bearing Demand Deposits	$	1,944,831		$	1,938,522		$	1,399,270
Interest-bearing Demand, Savings, and Money Market Accounts		3,755,374			3,714,191			3,013,204
Time Deposits		1,289,537			1,361,789			916,601
Total Deposits		6,989,742			7,014,502			5,329,075

Borrowings		182,683			211,016			210,131
Other Liabilities		54,030			56,007			41,637
TOTAL LIABILITIES		7,226,455			7,281,525			5,580,843

SHAREHOLDERS’ EQUITY
Common Stock and Surplus		744,314			744,017			421,943
Retained Earnings		582,945			558,086			513,588
Accumulated Other Comprehensive Income (Loss)		(164,934	)		(182,380	)		(220,464	)
SHAREHOLDERS’ EQUITY		1,162,325			1,119,723			715,067

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	8,388,780		$	8,401,248		$	6,295,910

END OF PERIOD SHARES OUTSTANDING		37,495,679			37,493,333			29,677,093

TANGIBLE BOOK VALUE PER SHARE ⁽¹⁾	$	20.08		$	18.89		$	17.93

⁽¹⁾	Tangible Book Value per Share is defined as Total Shareholders’ Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income

	Three Months Ended						Year Ended
	December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
INTEREST INCOME
Interest and Fees on Loans	$	93,785	$	93,305	$	62,045	$	358,597	$	240,241
Interest on Short-term Investments		2,585		2,084		2,792		10,817		7,697
Interest and Dividends on Investment Securities		12,971		12,708		11,718		50,675		43,105
TOTAL INTEREST INCOME		109,341		108,097		76,555		420,089		291,043

INTEREST EXPENSE
Interest on Deposits		28,013		29,416		22,873		115,092		90,622
Interest on Borrowings		2,648		2,956		2,650		10,865		9,830
TOTAL INTEREST EXPENSE		30,661		32,372		25,523		125,957		100,452

NET INTEREST INCOME		78,680		75,725		51,032		294,132		190,591
Provision for Credit Losses		2,225		700		625		19,425		2,775
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		76,455		75,025		50,407		274,707		187,816

NON-INTEREST INCOME
Net Gains on Sales of Loans		1,109		1,189		630		4,510		3,054
Net Gains (Losses) on Securities		—		—		—		—		(34,788	)
Other Non-interest Income		16,201		17,240		13,484		62,802		94,394
TOTAL NON-INTEREST INCOME		17,310		18,429		14,114		67,312		62,660

NON-INTEREST EXPENSE
Salaries and Benefits		27,620		25,444		20,404		107,742		82,257
Other Non-interest Expenses		22,330		24,256		15,435		94,207		64,120
TOTAL NON-INTEREST EXPENSE		49,950		49,700		35,839		201,949		146,377

Income before Income Taxes		43,815		43,754		28,682		140,070		104,099
Income Tax Expense		8,132		8,680		5,471		27,435		20,288

NET INCOME	$	35,683	$	35,074	$	23,211	$	112,635	$	83,811

BASIC EARNINGS PER SHARE	$	0.95	$	0.94	$	0.78	$	3.06	$	2.83
DILUTED EARNINGS PER SHARE	$	0.95	$	0.94	$	0.78	$	3.06	$	2.83

WEIGHTED AVERAGE SHARES OUTSTANDING		37,493,710		37,493,028		29,678,443		36,796,342		29,656,416
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		37,493,710		37,493,028		29,678,443		36,796,342		29,656,416

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)

	Three Months Ended									Year Ended
	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets		1.67	%		1.68	%		1.45	%		1.37	%		1.34	%
Annualized Return on Average Equity		12.49	%		13.00	%		12.67	%		10.72	%		12.22	%
Annualized Return on Average Tangible Equity ⁽¹⁾		19.49	%		21.14	%		16.90	%		17.19	%		16.72	%
Net Interest Margin		4.13	%		4.06	%		3.54	%		4.02	%		3.43	%
Efficiency Ratio ⁽²⁾		48.55	%		49.26	%		53.38	%		52.28	%		49.18	%
Net Overhead Expense to Average Earning Assets ⁽³⁾		1.69	%		1.66	%		1.48	%		1.81	%		1.46	%

ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans		0.04	%		0.05	%		0.03	%		0.05	%		0.05	%
Allowance for Credit Losses to Period End Loans		1.32	%		1.32	%		1.08	%
Non-performing Assets to Period End Assets		0.35	%		0.28	%		0.18	%
Non-performing Loans to Period End Loans		0.50	%		0.41	%		0.27	%
Loans 30-89 Days Past Due to Period End Loans		0.37	%		0.30	%		0.33	%

SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets	$	8,533,883		$	8,350,565		$	6,384,219		$	8,237,194		$	6,233,753
Average Earning Assets	$	7,738,298		$	7,538,784		$	5,878,988		$	7,453,650		$	5,722,010
Average Total Loans	$	5,828,461		$	5,766,875		$	4,094,333		$	5,604,879		$	4,035,670
Average Demand Deposits	$	1,948,794		$	1,912,208		$	1,422,400		$	1,851,978		$	1,420,412
Average Interest Bearing Liabilities	$	5,384,124		$	5,300,639		$	4,184,785		$	5,278,475		$	4,080,982
Average Equity	$	1,142,357		$	1,079,359		$	732,698		$	1,050,990		$	685,862

Period End Non-performing Assets ⁽⁴⁾	$	29,479		$	23,724		$	11,122
Period End Non-performing Loans ⁽⁵⁾	$	29,411		$	23,676		$	11,122
Period End Loans 30-89 Days Past Due ⁽⁶⁾	$	21,880		$	17,091		$	13,727

Tax-Equivalent Net Interest Income	$	80,256		$	76,998		$	52,204		$	299,569		$	196,085
Net Charge-offs during Period	$	588		$	748		$	313		$	2,670		$	2,104

(1)	Average Tangible Equity is defined as Average Equity less Average Goodwill and Other Intangibles.
(2)	Efficiency Ratio is defined as Non-interest Expense less Intangible Amortization divided by the sum of Net Interest Income, on a tax-equivalent basis, and Non-interest Income less Net Gains (Losses) on Securities.
(3)	Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income.
(4)	Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Other Real Estate Owned.
(5)	Non-performing loans are defined as Non-accrual Loans and Loans Past Due 90 days or more.
(6)	Loans 30-89 days past due and still accruing.

The accounting and reporting policies of German American Bancorp, Inc. (the “Company”) conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company has provided certain, non-GAAP financial measures, which it believes are useful because they assist investors in assessing the Company’s operating performance. Specifically, the Company has presented its net income, earnings per share, provision for credit losses, non-interest expense, non-interest income, efficiency ratio, return on average assets, return on average equity, return on tangible equity, and net interest margin on an as adjusted basis for the periods set forth below to reflect the exclusion of the following items: (1) the Current Expected Credit Losses (“CECL”) “Day 2” provision expense for acquired loans that have only insignificant credit deterioration (i.e., non-PCD loans) related to the Heartland merger; (2) non-recurring expenses related to the Heartland merger; (3) the gain and loss on the extinguishment of debt resulting from the redemption of certain subordinated notes on September 15, 2025 and December 30, 2025, respectively; (4) the operating results for German American Insurance, Inc. (“GAI”), whose assets were sold effective June 1, 2024; (5) the gain on the sale of GAI assets; and (6) the loss related to the securities portfolio restructuring transaction that occurred in the second quarter of 2024. Management believes excluding such items from these financial measures may be useful in assessing the Company’s underlying operational performance since the applicable transactions do not pertain to its core business operations and exclusion may facilitate better comparability between periods. In addition, management believes that by excluding such items the measures are useful to the Company, as well as analysts and investors, in assessing operating performance. Management also believes excluding these items may enhance comparability for peer comparison purposes.

Management believes that it is standard practice in the banking industry to present the efficiency ratio and net interest margin on a fully tax-equivalent basis and that, by doing so, it may enhance comparability for peer comparison purposes. The tax-equivalent adjustment to net interest income (for purposes of the efficiency ratio) and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.

Non-GAAP Reconciliation – Net Income and Earnings Per Share	Three Months Ended								Year Ended
(Dollars in Thousands, except per share amounts)	12/31/2025			09/30/2025		12/31/2024			12/31/2025		12/31/2024
Net Income, as reported	$	35,683		$	35,074	$	23,211		$	112,635	$	83,811
Adjustments:
Plus: CECL Day 2 non-PCD provision		—			—		—			12,150		—
Plus: Non-recurring merger-related expenses		—			101		154			5,418		1,082
Less: Gain (loss) on debt extinguishment		(212	)		731		—			519		—
Less: Loss on securities restructuring		—			—		—			—		(27,189	)
Less: Income from GAI operations		—			—		(54	)		—		767
Less: Gain on sale of GAI assets		—			—		—			—		27,476
Adjusted Net Income	$	35,895		$	34,444	$	23,419		$	129,684	$	83,839

Weighted Average Shares Outstanding		37,493,710			37,493,028		29,678,443			36,796,342		29,656,416

Earnings Per Share, as reported	$	0.95		$	0.94	$	0.78		$	3.06	$	2.83
Earnings Per Share, as adjusted	$	0.96		$	0.92	$	0.79		$	3.52	$	2.83

Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense	Three Months Ended							Year Ended
(Dollars in Thousands)	12/31/2025			09/30/2025		12/31/2024		12/31/2025		12/31/2024

Non-Interest Income	$	17,310		$	18,429	$	14,114	$	67,312	$	62,660
Less: Gains (Losses) on securities		—			—		—		—		105
Less: Loss on securities restructuring		—			—		—		—		(34,893	)
Less: Gain (loss) on debt extinguishment		(283	)		975		—		692		—
Less: Revenue from GAI operations		—			—		—		—		4,434
Less: Gain on sale of GAI assets		—			—		—		—		38,323
Adjusted Non-Interest Income	$	17,593		$	17,454	$	14,114	$	66,620	$	54,691

Non-Interest Expense	$	49,950		$	49,700	$	35,839	$	201,949	$	146,377
Less: Non-recurring merger-related expenses		—			135		198		6,996		1,370
Less: Expense from GAI operations		—			—		72		—		3,414
Less: Expense from sale of GAI assets		—			—		—		—		1,816
Adjusted Non-Interest Expense	$	49,950		$	49,565	$	35,569	$	194,953	$	139,777

Non-GAAP Reconciliation – Efficiency Ratio	Three Months Ended									Year Ended
(Dollars in Thousands)	12/31/2025			09/30/2025			12/31/2024			12/31/2025			12/31/2024
Adjusted Non-Interest Expense (from above)	$	49,950		$	49,565		$	35,569		$	194,953		$	139,777
Less: Intangible Amortization		2,582			2,693			438			10,148			2,032
Adjusted Non-Interest Expense excluding Intangible Amortization	$	47,368		$	46,872		$	35,131		$	184,805		$	137,745

Net Interest Income	$	78,680		$	75,725		$	51,032		$	294,132		$	190,591
Add: FTE Adjustment		1,576			1,273			1,172			5,437			5,494
Net Interest Income (FTE)		80,256			76,998			52,204			299,569			196,085

Adjusted Non-Interest Income (from above)		17,593			17,454			14,114			66,620			54,691

Total Adjusted Total Revenue	$	97,849		$	94,452		$	66,318		$	366,189		$	250,776

Efficiency Ratio		48.55	%		49.26	%		53.38	%		52.28	%		49.18	%
Adjusted Efficiency Ratio		48.41	%		49.63	%		52.97	%		50.47	%		54.93	%

Non-GAAP Reconciliation – Net Interest Margin	Three Months Ended									Year Ended
(Dollars in Thousands)	12/31/2025			09/30/2025			12/31/2024			12/31/2025			12/31/2024
Net Interest Income (FTE) from above	$	80,256		$	76,998		$	52,204		$	299,569		$	196,085
Less: Accretion of Discount on Acquired Loans	$	3,966		$	3,914		$	617		$	15,556		$	1,507
Adjusted Net Interest Income (FTE)	$	76,290		$	73,084		$	51,587		$	284,013		$	194,578
Average Earning Assets	$	7,738,298		$	7,538,784		$	5,878,988		$	7,453,650		$	5,722,010
Net Interest Margin (FTE)		4.13	%		4.06	%		3.54	%		4.02	%		3.43	%
Adjusted Net Interest Margin (FTE)		3.92	%		3.85	%		3.50	%		3.81	%		3.40	%

Non-GAAP Reconciliation – Return on Average Assets	Three Months Ended									Year Ended
(Dollars in Thousands)	12/31/2025			09/30/2025			12/31/2024			12/31/2025			12/31/2024
Adjusted Net Income	$	35,895		$	34,444		$	23,419		$	129,684		$	83,839

Average Assets	$	8,533,883		$	8,350,565		$	6,384,219		$	8,237,194		$	6,233,753

Return on Average Assets, as reported		1.67	%		1.68	%		1.45	%		1.37	%		1.34	%
Return on Average Assets, as adjusted		1.68	%		1.65	%		1.47	%		1.57	%		1.34	%

Non-GAAP Reconciliation – Return on Average Equity	Three Months Ended									Year Ended
(Dollars in Thousands)	12/31/2025			9/30/2025			12/31/2024			12/31/2025			12/31/2024
Adjusted Net Income	$	35,895		$	34,444		$	23,419		$	129,684		$	83,839

Average Equity	$	1,142,357		$	1,079,359		$	732,698		$	1,050,990		$	685,862

Return on Average Equity, as reported		12.49	%		13.00	%		12.67	%		10.72	%		12.22	%
Return on Average Equity, as adjusted		12.57	%		12.76	%		12.79	%		12.34	%		12.22	%

Non-GAAP Reconciliation – Return on Tangible Equity	Three Months Ended									Year Ended
(Dollars in Thousands)	12/31/2025			9/30/2025			12/31/2024			12/31/2025			12/31/2024
Adjusted Net Income	$	35,895		$	34,444		$	23,419		$	129,684		$	83,839

Average Equity, as reported	$	1,142,357		$	1,079,359		$	732,698		$	1,050,990		$	685,862
Average Intangibles, as reported		410,150			415,666			183,274			395,603			184,664
Average Tangible Equity	$	732,207		$	663,693		$	549,424		$	655,387		$	501,198

Return on Tangible Equity, as reported		19.49	%		21.14	%		16.90	%		17.19	%		16.72	%
Return on Tangible Equity, as adjusted		19.61	%		20.76	%		17.05	%		19.79	%		16.73	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260126295976/en/

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2025 FOURTH QUARTER FINANCIAL RESULTS

EAGLE FINANCIAL SERVICES, INC on February 5, 2026

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2025 FOURTH QUARTER FINANCIAL RESULTS

PR Newswire

BERRYVILLE, Va., Jan. 26, 2026

BERRYVILLE, Va., Jan. 26, 2026 /PRNewswire/ — Eagle Financial Services, Inc. (NASDAQ: EFSI) (the “Company”), the holding company for Bank of Clarke, announced its fourth quarter 2025 results. The following table presents selected financial performance highlights for the periods indicated:

	Three Months Ended
	December 31,			September 30,			December 31,
	2025			2025			2024
	(in thousands)
										As adjusted (1)
Consolidated net income	$	4,334		$	5,584		$	6,186		$	3,125

Consolidated noninterest income	$	5,355		$	5,165		$	8,521		$	4,647

Earnings per share – basic and diluted	$	0.81		$	1.04		$	1.74		$	0.88

Annualized return on average equity		9.18	%		12.20	%		21.10	%		10.66	%

Annualized return on average assets		0.91	%		1.10	%		1.32	%		0.67	%

Net interest margin		3.61	%		3.58	%		3.03	%		3.03	%


(1)	Non-GAAP financial measure – Excluding the tax effected impact of the gain on sale of the Old Town Center (“OTC”) building as a result of the executed sale-leaseback transaction. See the “Reconciliation of GAAP to Non-GAAP Performance Highlights” table for a reconciliation of these measures to comparable measures calculated in accordance with GAAP.

Additional key highlights for the fourth quarter of 2025 are as follows:

Non-interest income to average assets increased to 1.12% for the three months ended December 31, 2025 as compared to 1.02% for the prior quarter.
Wealth management fee income increased 25.8% to $2.3 million for the three months ended December 31, 2025 as compared to the prior quarter.
Loan yield increased from 5.68% for the quarter ended September 30, 2025 to 5.76% for the quarter ended December 31, 2025. Net interest spread increased from 2.57% for the quarter ended September 30, 2025 to 2.74% for the quarter ended December 31, 2025.

Brandon Lorey, President and CEO, stated, “2025 was a pivotal year for our organization, marked by a successful capital raise, the strategic balance sheet repositioning, and subsequent uplist to NASDAQ that have significantly strengthened our balance sheet and improved our forward earnings profile. Net of the 2024 sale leaseback transaction, annualized return on average assets increased 36%, led by a 19% improvement in net interest margin over the year. Importantly, the steps we have taken—both operationally and strategically—have further strengthened our franchise value, positioning us for sustained growth, resilience, and enhanced competitiveness in the years ahead. I want to extend my sincere appreciation to our employees, whose dedication and professionalism made this progress possible. To our customers, thank you for placing your trust in us every day. And to our shareholders, we are grateful for your continued confidence and support as we advance our strategic priorities.”

Income Statement Review

Total net income for the quarters ended December 31, 2025 and September 30, 2025 was $4.3 million and $5.6 million, respectively. Net income was $6.2 million for the quarter ended December 31, 2024. For the quarter ended December 31, 2025, net income decreased $1.3 million or 22.4% from the quarter ended September 30, 2025 and decreased $1.9 million or 29.9% from the quarter ended December 31, 2024. The decrease from the quarter ended September 30, 2025 was due to a decrease in net interest income as well as an increase in salaries and employee benefits expense during the quarter ended December 31, 2025. These changes are discussed below in greater detail. The decrease from the quarter ended December 31, 2024 was primarily due to the sale-leaseback transaction of our OTC branch in Winchester, during the fourth quarter of 2024. Excluding the net of tax effected impact of the $3.9 million gain recognized during the fourth quarter of 2024 from the sales-leaseback transaction, adjusted net income for the quarter ended December 31, 2024 was $3.1 million. This is a non-GAAP financial measure. Please refer to the “Reconciliation of GAAP to Non-GAAP Performance Highlights” table for additional information. The increase in net income for the quarter ended December 31, 2025 compared to the as-adjusted quarter ended December 31, 2024 was due to several factors. Wealth management fee income increased by $919 thousand as well as net interest income, which increased by $2.9 million. These increases were partially offset by increases in noninterest expenses of $2.0 million. These changes are discussed below in greater detail

Total loan interest income was $21.3 million and $20.7 million for the quarters ended December 31, 2025 and September 30, 2025, respectively. Total loan interest income was $21.1 million for the quarter ended December 31, 2024. Total loan interest income increased $546 thousand or 2.6% from the quarter ended September 30, 2025 to the quarter ended December 31, 2025. Average loans increased by $18.9 million or 1.3% from the quarter ended September 30, 2025 to the quarter ended December 31, 2025. The tax equivalent yield on average loans for the quarter ended December 31, 2025 was 5.76%, an increase of eight basis points from the 5.68% average yield for the quarter ended September 30, 2025. The slight increase in loan interest income between the quarters ended December 31, 2025 and December 31, 2024 was mainly due to an increase in interest rates offset partially by a lower level of outstanding loans. The tax equivalent yield on average loans for the quarter ended December 31, 2025 was 5.76%, an increase of six basis points from the 5.70% average yield for the quarter ended December 31, 2024. Average loans decreased by $12.1 million or 0.82% for the quarter ended December 31, 2025 compared to the quarter ended December 31, 2024. Early during the first quarter of 2025, ahead of its public offering, the Company sold a pool of mortgage loans at par in order to bolster on-balance sheet liquidity. This pool had a total balance of $18.8 million with a weighted average yield of 6.58%.

Interest and dividend income from the investment portfolio was $1.3 million for the quarter ended December 31, 2025 compared to $1.4 million for the quarter ended September 30, 2025. Interest and dividend income from the investment portfolio was $879 thousand for the quarter ended December 31, 2024. The tax equivalent yield on average investments for the quarter ended December 31, 2025 was 4.25%, down five basis points from 4.30% for the quarter ended September 30, 2025 and up 168 basis points from 2.57% for the quarter ended December 31, 2024. The increase in yield was due largely to lower yielding investments sold during the first quarter of 2025 being replaced with higher yielding securities. During the quarter ended March 31, 2025, $99.2 million in securities were sold with a weighted average yield of 1.72%. During the same quarter, $76.0 million in securities were purchased. Of the $76.0 million in securities purchased, $66.0 million were purchased as a part of the executed balance sheet repositioning with a weighted average yield of 4.72%.

Total interest expense was $8.4 million and $8.7 million for the three months ended December 31, 2025 and September 30, 2025, respectively and $10.5 million for three months ended December 31, 2024. The decrease in interest expense between the quarter ended December 31, 2024 and the quarter ended December 31, 2025 was largely due to a $1.2 million decrease in FHLB interest expense. The average balance of FHLB advances decreased $101.7 million from the quarter ended December 31, 2024 to the same period in 2025. The decrease was also partially attributable to lower interest expense on deposits by $970 thousand for the same comparative periods. The average balance of interest-bearing deposits increased by $11.2 million during this time period but the average yield paid on these deposits decreased by 37 basis points for the same period. The decrease in interest expense between the quarter ended September 30, 2025 and the quarter ended December 31, 2025 was due to lower interest expense on deposits. The average balance of interest-bearing deposits decreased by $5.6 million during this time period.

Net interest income for the quarter ended December 31, 2025 was $16.4 million reflecting a decrease of 4.8% from the quarter ended September 30, 2025 and an increase of 21.3% from the quarter ended December 31, 2024. Net interest income was $17.2 million and $13.5 million, respectively, for the quarters ended September 30, 2025 and December 31, 2024.

The net interest margin was 3.61% for the quarter ended December 31, 2025. For the quarters ended September 30, 2025 and December 31, 2024, the net interest margin was 3.58% and 3.03%, respectively. The increases in the net interest margin from September 30, 2025 was mainly due to the increase in loans combined with the increase in loan rates during the quarter. The increase in the net interest margin from December 31, 2024 can be attributed to several factors. The net interest spread increased to 2.74% at December 31, 2025 from 2.21% at December 31, 2024, respectively. Both the repositioning of the securities portfolio and the run off of higher interest bearing non core deposits during the period had a positive impact to the net interest margin.

The Company’s net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitable earning assets are funded. The Company’s net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 21%. This is a non-GAAP financial measure. Please refer to the “Reconciliation of Tax-Equivalent Net Interest Income” table for additional information.

Total noninterest income was $5.4 million and $5.2 million for the quarters ended December 31, 2025 and September 30, 2025 respectively. Total noninterest income was $8.5 million for the quarter ended December 31, 2024. The increase in total noninterest income when comparing the fourth quarter of 2025 to the third quarter of 2025 is mainly due to the increase in wealth management fee income by $472 thousand or 25.8%. This increase was partially offset by a decrease to gain on sale of loans held for sale of $182 thousand due to a lower volume of SBA loan sales during the fourth quarter of 2025. When comparing the fourth quarter of 2025 to the same quarter of 2024, wealth management fee income increased by $919 thousand or 66.7% which was more than offset by the $3.9 million gain on sale from the sale-leaseback transaction of our OTC branch in Winchester, during the fourth quarter of 2024. In addition, small business investment company income was $435 thousand lower in the fourth quarter of 2025 when compared to the fourth quarter of 2024. Wealth management fee income is comprised of income from fiduciary activities as well as commissions from the sale of non-deposit investment products. The amount of income from fiduciary activities is determined by the number of active accounts and total assets under management which has increased during the quarter ended December 31, 2025. Additionally, per transaction fees for estates and other services have also contributed to the increase in revenue.

Noninterest expense increased $1.2 million, or 8.3%, to $15.5 million for the quarter ended December 31, 2025 from $14.3 million for the quarter ended September 30, 2025. Noninterest expense was $13.6 million for the quarter ended December 31, 2024, representing an increase of $2.0 million or 14.6% when comparing to the quarter ended December 31, 2025. Salaries and benefits expense increased $745 thousand or 8.5% between December 31, 2025 and September 30, 2025, largely due to increased incentive accruals resulting from additional plan metrics reaching payout levels during the quarter. Salaries and benefits expense increased $1.5 million or 18.7% between December 31, 2025 and December 31, 2024, mainly due to the increase in the number of employees as well as increased incentive accruals. Full time equivalent employees were 254 and 231 at December 31, 2025 and December 31, 2024, respectively.

Asset Quality and Provision for Credit Losses

Nonperforming assets consist of nonaccrual loans, loans 90 days or more past due and still accruing, other real estate owned (foreclosed properties), and repossessed assets. Nonperforming assets increased slightly from $14.3 million or 0.74% of total assets at September 30, 2025 to $14.6 million or 0.77% of total assets at December 31, 2025. This increase was due to the addition of one $2.1 million commercial and industrial relationship to nonaccrual status which was partially offset by the sale of several other real estate owned and repossessed assets during the fourth quarter. Based on a recent valuation, the Bank believes that there is sufficient collateral to cover the entirety of the outstanding balance of the new nonaccrual relationship. Nonperforming assets were $3.0 million or 0.16% of total assets at December 31, 2024. Nonperforming assets increased as of December 31, 2025 in comparison to December 31, 2024 mainly due to two large relationships being placed in nonaccrual status during the first quarter of 2025 and one large relationship being placed in nonaccrual status during the fourth quarter of 2025. These three relationships had a total balance of $9.7 million as of December 31, 2025.

The first large relationship placed into nonaccrual status during the first quarter of 2025 had an outstanding balance of $2.2 million as of December 31, 2025 and was a partially owner-occupied property whose owner passed away unexpectedly causing the business to halt. The courts have assigned an executor of the estate, and the Bank has filed and been found in favor on summary judgment. This permits the Bank to move forward with the foreclosure process. Based on a recent appraisal, the Bank believes that there is sufficient collateral to cover the entirety of the outstanding balance of the loan.

The second large relationship placed into nonaccrual status during the first quarter was comprised of four residential multifamily income producing properties in Washington D.C. (the District) with a current combined exposure of approximately $5.5 million. The largest of the four properties had a corresponding loan balance of $5.9 million at June 30, 2025. This property was offered for sale on July 8, 2025, for $5.7 million with the Bank agreeing to a short sale of $4.8 million, thereby creating a deficiency balance of $1.1 million after consideration of past due taxes and other costs. The property owner has entered into an agreement with the Bank to pay back the deficiency balance and the Bank has collateralized this note with the property owner’s remaining three properties, as well as a third deed of trust on two additional properties, as a condition of the aforementioned short sale. The Bank charged-off the full amount of the deficiency balance during the third quarter of 2025 due to the unlikelihood of repayment and the limited amount of remaining collateral value and will now be working through recovery on the collateralized properties. Concurrently, the Bank has been granted receivership on the remaining three properties. The Bank is now actively working with the receiver to update the properties and ready them for sale while continuing to collect the housing payments directly from the District. The remaining properties in non-accrual status have been written down to their current estimated values and the Bank is working through its normal work-out process. The Bank does not anticipate having to make any further significant write-downs on these three properties.

The large relationship placed into nonaccrual status during the fourth quarter of 2025 had an outstanding balance of $2.1 million as of December 31, 2025. The Bank’s portion is part of a larger syndicated loan, with the Bank’s portion being 0.31% of the total loan commitment. The borrower is currently under a forbearance agreement, for financial covenant violations and past due payments. The borrower’s new management team along with the lead bank continue to work on a restructuring of the business. Performance has improved with the new management team in place. Based on most recent business valuation, the Bank believes there is sufficient collateral to cover the entirety of the outstanding balance of the loan. The Bank will continue to closely monitor this relationship.

The majority of all nonaccrual loans are secured by real estate and management evaluates the financial condition of these borrowers and the value of any collateral on these loans. The results of these evaluations are used to estimate the amount of losses which may be realized on the disposition of these nonaccrual loans. Specific reserves on nonaccrual loans totaled $467 thousand, $418 thousand and $248 thousand as of December 31, 2025, September 30, 2025 and December 31, 2024, respectively.

The Company realized $237 thousand in net charge-offs for the quarter ended December 31, 2025 compared to $2.3 million for the three months ended September 30, 2025. During the three months ended December 31, 2024, $486 thousand in net charge-offs were recognized. The majority of the charge-offs recognized during the third quarter of 2025 were for the $1.1 million deficiency balance discussed above along with a $468 thousand write-down on a nonaccrual commercial real estate loan.

The ratio of allowance for credit losses to total loans was 1.04% and 1.01% at December 31, 2025 and September 30, 2025, respectively. The 3 basis point increase in the allowance for credit losses to total loans between September 30, 2025 and December 31, 2025 was largely due to slight increases in both the overall quantitative and qualitative factors due mainly to increased loss rates. The ratio of allowance for credit losses to total loans was 1.02% at December 31, 2024. The amount of provision for credit losses on loans reflects the results of the Bank’s analysis used to determine the adequacy of the allowance for credit losses. The Company recorded $747 thousand in provision for credit losses on loans for the quarter ended December 31, 2025. The Company recognized provision for credit losses on loans of $1.1 million and $210 thousand for the quarters ended September 30, 2025 and December 31, 2024, respectively. The higher provision for the quarter ended September 30, 2025 was mainly due to the larger net charge-offs during the quarter. This was partially offset by the reduction in specific allocations needed at quarter end. Net charge-off levels were lower during the fourth quarter of 2025. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. The Company is committed to maintaining an allowance at a level that adequately reflects expected credit losses over the life of the loan portfolio.

Balance Sheet

Total consolidated assets of the Company at December 31, 2025 were $1.89 billion, which represented a decrease of $43.8 million or 2.27% from total assets of $1.93 billion at September 30, 2025. At December 31, 2024, total consolidated assets were $1.87 billion. Total assets decreased during the fourth quarter of 2025 primarily due to the decrease in cash and cash equivalents of $50.9 million during the fourth quarter of 2025. Cash and cash equivalents were at a lower level as of December 31, 2025 due to declines in deposits during the quarter. See below for further discussion on deposits.

Total net loans increased $12.6 million from $1.45 billion at September 30, 2025 to $1.46 billion at December 31, 2025 driven largely by the growth of commercial real estate loans of $8.8 million and commercial and industrial loans of $9.8 million and partially offset by marine loan amortization. Numerous commercial real estate owner-occupied and non owner-occupied loans were originated during the fourth quarter totaling approximately $15.5 million and $14.5 million, respectively. These originations were partially offset by paydowns and payoffs in the normal course of business. Commercial and industrial loans originated during the fourth quarter of 2025 had an outstanding balance of $8.6 million as of December 31, 2025. In addition to these originations, there were some increases to the usage of commercial lines of credit.

Total deposits decreased to $1.61 billion as of December 31, 2025 when compared to September 30, 2025 deposits of $1.66 billion. At December 31, 2024 total deposits were $1.58 billion. During the second quarter of 2025, total deposits increased $152.7 million. The majority of this increase was due to large deposits in non-interest bearing accounts totaling $151.7 million during the quarter and is primarily related to sales proceeds of two customer’s businesses. During the third quarter of 2025, $72.4 million of these funds left the bank, with $79.3 million still remaining at September 30, 2025. During the fourth quarter of 2025, $74.4 million of these funds left the bank leaving a remaining $4.9 million. This accounts for the majority of the decrease in total deposits during the quarter. Year over year deposits increased $32.2 million and the majority of the growth was in savings and interest bearing deposits. Core deposit change for the quarter and twelve months ended December 31, 2025 was a decrease of $9.5 million and an increase of $5.4 million, respectively. Core deposits consist of checking accounts, NOW accounts, money market accounts, regular savings accounts and time deposits less than $250 thousand.

Liquidity

The objective of the Company’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of December 31, 2025, the Company’s uninsured deposits were approximately $199.0 million or 12.4% of total deposits.

The Company’s liquid assets, which include cash and due from banks, interest-bearing deposits at other banks, loans with a maturity less than one year and nonpledged securities available for sale, were $423.4 million and borrowing availability was $595.3 million as of December 31, 2025, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $819.7 million. Liquid assets have decreased by $44.3 million during the fourth quarter mainly due to a $50.9 million decrease in cash and cash equivalent balance as discussed above. In addition to deposits, the Company utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta (FHLB) as well as federal funds purchased from Community Bankers Bank may be used to fund the Company’s day-to-day operations. Long-term borrowings include FHLB advances as well as subordinated debt. Total outstanding borrowings decreased to $69.6 million at December 31, 2025 from $149.5 million at December 31, 2024. This decrease was primarily due to deposit growth and higher levels of loan sales during the first quarter of 2025 enabling the payoff of borrowings. Borrowings remained stable from September 30, 2025 to December 31, 2025.

Additional sources of liquidity available to the Company include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends

On January 21, 2026, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on February 13, 2026, to shareholders of record on February 2, 2026. The Board of Directors of the Company continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $69.9 million to $188.9 million at December 31, 2025 compared to December 31, 2024 and increased $3.3 million compared to September 30, 2025. During the first quarter of 2025, the Company completed a public offering of common stock. A total of 1,796,875 shares were issued with net proceeds of $53.5 million.

The Company’s securities available for sale are fixed income debt securities and their unrealized loss position is a result of increased market interest rates since they were purchased. The Company expects to recover its investments in debt securities through scheduled payments of principal and interest. The accumulated other comprehensive loss related to the Company’s securities available for sale decreased to $5.3 million at December 31, 2025 compared to $5.6 million at September 30, 2025 and decreased from $18.6 million at December 31, 2024. As part of a balance sheet repositioning as discussed above, the Bank sold available for sale debt securities with an amortized cost balance of $99.2 million (fair value of $86.8 million) and a weighted average yield of 1.72% and reinvested $66.0 million into purchases of available for sale debt securities with a weighted average yield of 4.70%. The sale of debt securities resulted in a net pre-tax realized loss of $12.4 million (after-tax of $9.8 million) that was recognized in the first quarter of 2025.

As of December 31, 2025, the most recent notification from the FDIC categorized the Bank of Clarke as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at December 31, 2025, Bank of Clarke was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, Bank of Clarke must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Bank of Clarke exceeded these ratios at December 31, 2025.

Explanation of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and the impact of non-recurring transactions on the Bank’s results. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s results and financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for or more important than financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Fourth Quarter 2025 Earnings Release Conference Call and Webcast

Eagle Financial Services’ Chief Executive Officer, Brandon Lorey, and Chief Financial Officer, Kate Chappell, will hold a listen-only conference call and webcast to discuss fourth quarter results on Tuesday, January 27, 2026, at 10 a.m. eastern time. Those wishing to listen to the conference call should call the applicable number below and reference the Conference ID below.

USA / International – (Toll) – +1.646.968.2525
USA – (Toll-Free) +1.888.596.4144
Canada – (Toronto) +1.647.495.7514
Canada – (Toll-Free) +1.888.596.4144
Conference ID – 3461943 and press #

A replay of the call and webcast will be accessible at investors.bankofclarke.bank. Webcast URL: https://events.q4inc.com/attendee/675800700

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s future operations and are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to: changes in interest rates and general economic conditions; the legislative and regulatory climate; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and Federal Reserve; the quality or composition of the Company’s loan or investment portfolios; the Company’s ability to successfully resolve non-performing assets; demand for loan products; liquidity and deposit flows; competition; demand for financial services in the Company’s market area; acquisitions and dispositions; the Company’s ability to keep pace with new technologies; a failure in or breach of the Company’s operational or security systems or infrastructure, or those of third-party vendors or other service providers, including as a result of cyberattacks; the Company’s capital and liquidity; changes in tax and accounting rules, principles, policies and guidelines; and other factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the Securities and Exchange Commission.

EAGLE FINANCIAL SERVICES, INC.
KEY STATISTICS (unaudited)

	For the Three Months Ended
(Dollars in thousands, except per share data)	4Q25			3Q25			2Q25			1Q25			4Q24
Net Income (loss)	$	4,334		$	5,584		$	5,270		$	(6,974)		$	6,186
Earnings (loss) per share, basic	$	0.81		$	1.04		$	0.98		$	(1.53)		$	1.74
Earnings (loss) per share, diluted	$	0.81		$	1.04		$	0.98		$	(1.53)		$	1.74
Return on average total assets (4)		0.91	%		1.10	%		1.09	%		(1.48)	%		1.32	%
Return on average total equity (4)		9.18	%		12.20	%		11.93	%		(20.75)	%		21.10	%
Dividend payout ratio		38.27	%		29.81	%		31.63	%	N/M				17.82	%
Fee revenue as a percent of total revenue (1)		17.86	%		15.81	%		15.65	%	N/M				12.79	%
Net interest margin (2) (4)		3.61	%		3.58	%		3.42	%		2.98	%		3.03	%
Yield on average earning assets (4)		5.45	%		5.39	%		5.41	%		5.25	%		5.39	%
Rate on average interest-bearing liabilities (4)		2.71	%		2.82	%		2.90	%		3.12	%		3.18	%
Net interest spread (4)		2.74	%		2.57	%		2.51	%		2.13	%		2.21	%
Tax equivalent adjustment to net interest income	$	26		$	25		$	26		$	28		$	28
Non-interest income to average assets (4)		1.12	%		1.02	%		1.02	%		(1.82)	%		1.81	%
Non-interest expense to average assets (4)		3.24	%		2.83	%		2.78	%		2.68	%		2.88	%
Efficiency ratio (3)		70.39	%		64.06	%		64.91	%		72.20	%		74.58	%

N/M – Not meaningful

(1) Fee revenue as a percentage of total revenue is calculated by dividing the sum of wealth management fees, service charges on deposit accounts and other service charges and fees by the sum of net interest income and non-interest income.

(2) Non-GAAP financial measure – The annualized net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The rate utilized is 21%. Please refer to the “Reconciliation of Tax-Equivalent Net Interest Income” table for the quarterly tax equivalent net interest income and the reconciliation of net interest income to tax equivalent net interest income. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitable earning assets are funded. Because the Company earns a fair amount of nontaxable interest income due tax-exempt loan balances, net interest income for the ratio is calculated on a tax equivalent basis as described above.

(3) Non-GAAP financial measure – The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense less gain/loss on other real estate owned and gain/loss on repossessed assets by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio, the gain on the sale of the Old Town Center location, and loss on sale of other bank premises and equipment. The tax rate utilized is 21%. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses. The Company believes that the efficiency ratio is a reasonable measure of profitability. Please refer to the “Reconciliation of Efficiency Ratio” table for additional information.

(4) Annualized.

EAGLE FINANCIAL SERVICES, INC.
SELECTED FINANCIAL DATA BY QUARTER (unaudited)

(Dollars in thousands, except per share data)	4Q25			3Q25			2Q25			1Q25			4Q24
BALANCE SHEET RATIOS
Loans to deposits		91.65	%		88.21	%		81.44	%		89.99	%		93.14	%
Average interest-earning assets to average-interest bearing liabilities		147.54	%		155.33	%		146.08	%		137.78	%		134.93	%
PER SHARE DATA
Dividends	$	0.31		$	0.31		$	0.31		$	0.31		$	0.31
Book value		35.14			34.52			33.41			32.81			33.52
Tangible book value		35.14			34.52			33.41			32.81			33.52
SHARE PRICE DATA
Closing price	$	39.80		$	37.83		$	30.62		$	32.79		$	36.40
Diluted earnings multiple(1)		12.28			9.09			7.81		N/M				5.23
Book value multiple(2)		1.13			1.10			0.92			1.00			1.09
COMMON STOCK DATA
Outstanding shares at end of period		5,374,205			5,376,346			5,376,346			5,378,653			3,549,581
Weighted average shares outstanding		5,376,088			5,376,346			5,378,214			4,572,297			3,549,581
Weighted average shares outstanding, diluted		5,376,088			5,376,346			5,378,214			4,572,297			3,549,581
CREDIT QUALITY
Net charge-offs to average loans		0.02	%		0.16	%		0.01	%		0.06	%		0.03	%
Total non-performing loans to total loans (3)		0.98	%		0.91	%		1.20	%		1.13	%		0.17	%
Total non-performing assets to total assets (4)		0.77	%		0.74	%		0.86	%		0.86	%		0.16	%
Non-accrual loans to:
total loans		0.98	%		0.90	%		1.16	%		1.11	%		0.14	%
total assets		0.76	%		0.68	%		0.82	%		0.85	%		0.11	%
Allowance for credit losses to:
total loans		1.04	%		1.01	%		1.11	%		1.05	%		1.02	%
non-performing assets (4)		104.98	%		103.81	%		91.24	%		93.45	%		506.30	%
non-accrual loans		106.40	%		112.48	%		95.48	%		94.79	%		725.24	%
NON-PERFORMING ASSETS:
Loans delinquent over 90 days	$	60		$	91		$	593		$	230		$	382
Non-accrual loans		14,398			13,167			16,735			16,122			2,072
Other real estate owned and repossessed assets		135			1,009			186			—			514
NET LOAN CHARGE-OFFS (RECOVERIES):
Loans charged off	$	318		$	2,417		$	335		$	1,076		$	585
(Recoveries)		(81)			(117)			(176)			(185)			(99)
Net charge-offs		237			2,300			159			891			486
PROVISION FOR CREDIT LOSSES ON LOANS	$	747		$	1,131		$	856		$	1,146		$	210
ALLOWANCE FOR CREDIT LOSSES		15,320			14,810			15,979			15,282			15,027

N/M – Not meaningful

(1) The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period’s closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings.

(2) The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share.

(3) Non-performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.

(4) Non-performing assets include non-accrual loans, loans 90 days or more past due and still accruing interest, repossessed assets and other real estate owned (OREO) acquired through foreclosure.

EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS

	Unaudited 12/31/2025		Unaudited 09/30/2025		Unaudited 06/30/2025		Unaudited 03/31/2025		* 12/31/2024
Assets
Cash and due from banks	$	13,942	$	15,558	$	17,401	$	16,527	$	13,129
Interest-bearing deposits with other institutions		103,984		189,119		260,568		187,018		162,595
Federal funds sold		99,268		63,452		118,033		61,401		17,435
Securities available for sale, at fair value and restricted stock		123,329		125,165		124,693		114,844		128,887
Loans held for sale		4,786		3,479		3,302		3,173		2,660
Loans, net of allowance for credit losses		1,457,757		1,445,118		1,422,653		1,436,982		1,452,022
Bank premises and equipment, net		14,906		14,878		14,693		14,625		14,339
Bank owned life insurance		31,720		31,440		31,172		30,894		30,621
Other assets		38,934		44,264		42,565		39,013		44,527
Total assets	$	1,888,626	$	1,932,473	$	2,035,080	$	1,904,477	$	1,866,215
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest bearing demand deposits	$	432,171	$	521,149	$	574,596	$	421,342	$	406,180
Savings and interest bearing demand deposits		728,545		687,530		728,370		697,679		679,330
Time deposits		446,644		446,369		463,558		494,770		489,646
Total deposits	$	1,607,360	$	1,655,048	$	1,766,524	$	1,613,791	$	1,575,156
Federal funds purchased		—		101		172		—		—
Federal Home Loan Bank advances, short-term				—		—		25,000		—
Federal Home Loan Bank advances		40,000		40,000		40,000		40,000		120,000
Subordinated debt, net		29,579		29,562		29,545		29,529		29,512
Other liabilities		22,848		22,181		19,191		19,682		22,560
Total liabilities	$	1,699,787	$	1,746,892	$	1,855,432	$	1,728,002	$	1,747,228

Commitments and contingent liabilities

Shareholders’ Equity
Preferred stock, $10 par value		—		—		—		—		—
Common stock, $2.50 par value		13,264		13,260		13,260		13,252		8,714
Surplus		64,720		64,458		64,154		63,922		14,901
Retained earnings		116,115		113,448		109,530		105,928		114,012
Accumulated other comprehensive (loss)		(5,260)		(5,585)		(7,296)		(6,627)		(18,640)
Total shareholders’ equity	$	188,839	$	185,581	$	179,648	$	176,475	$	118,987
Total liabilities and shareholders’ equity	$	1,888,626	$	1,932,473	$	2,035,080	$	1,904,477	$	1,866,215


*	Derived from audited consolidated financial statements.

EAGLE FINANCIAL SERVICES, INC.
LOAN DATA (unaudited)

	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024
Mortgage real estate loans:
Construction & Secured by Farmland	$	82,336	$	84,467	$	76,060	$	98,660	$	95,200
HELOCs		58,640		54,549		52,032		50,543		50,646
Residential First Lien – Investor		107,308		103,942		106,493		108,519		105,910
Residential First Lien – Owner Occupied		178,806		178,725		177,000		174,822		194,065
Residential Junior Liens		10,724		10,497		10,865		10,983		11,184
Commercial – Owner Occupied		298,853		290,931		288,821		268,990		272,236
Commercial – Non-Owner Occupied & Multifamily		398,926		398,076		372,833		374,471		367,680
Commercial and industrial loans:
BHG loans		2,344		2,637		2,928		3,248		3,566
SBA PPP loans		4		10		16		22		28
Other commercial and industrial loans		110,876		100,777		103,571		109,658		106,749
Marine loans		175,639		185,938		196,434		203,455		210,095
Triad Loans		21,324		21,856		22,111		22,528		22,894
Consumer loans		7,418		7,566		7,628		7,898		8,123
Overdrafts		318		297		240		208		309
Other loans		13,946		13,895		15,372		11,822		11,911
Total loans	$	1,467,462	$	1,454,163	$	1,432,404	$	1,445,827	$	1,460,596
Net deferred loan costs and premiums		5,615		5,765		6,228		6,437		6,453
Allowance for credit losses on loans		(15,320)		(14,810)		(15,979)		(15,282)		(15,027)
Net loans	$	1,457,757	$	1,445,118	$	1,422,653	$	1,436,982	$	1,452,022

EAGLE FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

											*
	Three Months Ended										Year Ended
											December 31,
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024		2025		2024
Interest and Dividend Income
Interest and fees on loans	$	21,268	$	20,722	$	20,409	$	19,971	$	21,148	$	82,370	$	81,779
Interest on federal funds sold		54		55		87		39		5		235		123
Interest and dividends on securities available for sale:
Taxable interest income		1,274		1,293		1,142		695		713		4,404		2,922
Interest income exempt from federal income taxes		—		—		—		3		4		3		16
Dividends		61		60		117		150		162		388		630
Interest on deposits in banks		2,098		3,803		3,060		2,644		1,962		11,605		5,851
Total interest and dividend income	$	24,755	$	25,933	$	24,815	$	23,502	$	23,994	$	99,005	$	91,321
Interest Expense
Interest on deposits	$	7,526	$	7,886	$	8,263	$	8,504	$	8,496	$	32,179	$	31,854
Interest on federal funds purchased		—		—		—		—		—		—		—
Interest on Federal Home Loan Bank advances		494		494		499		1,308		1,645		2,795		6,823
Interest on subordinated debt		354		354		355		354		354		1,417		1,417
Total interest expense	$	8,374	$	8,734	$	9,117	$	10,166	$	10,495	$	36,391	$	40,094
Net interest income	$	16,381	$	17,199	$	15,698	$	13,336	$	13,499	$	62,614	$	51,227
Provision For Credit Losses		688		1,112		668		1,233		351		3,701		2,551
Net interest income after provision for credit losses	$	15,693	$	16,087	$	15,030	$	12,103	$	13,148	$	58,913	$	48,676
Noninterest Income
Wealth management fees	$	2,299	$	1,827	$	1,650	$	1,681	$	1,380	$	7,457	$	5,624
Service charges on deposit accounts		574		558		517		492		508		2,141		1,936
Other service charges and fees		1,009		1,151		1,060		972		929		4,192		4,179
(Loss) gain on the sale of bank premises and equipment		(1)		(2)		—		(16)		3,874		(19)		3,863
(Loss) on sales of AFS securities		—		—		—		(12,425)		—		(12,425)		—
Gain on sale of loans held-for-sale		830		1,012		1,104		429		861		3,375		2,141
Small business investment company income		40		58		133		20		475		251		1,357
Bank owned life insurance income		280		268		278		273		260		1,099		1,981
Other operating income		324		293		175		20		234		812		476
Total noninterest income (loss)	$	5,355	$	5,165	$	4,917	$	(8,554)	$	8,521	$	6,883	$	21,557
Noninterest Expenses
Salaries and employee benefits	$	9,462	$	8,717	$	7,845	$	7,179	$	7,973	$	33,203	$	30,059
Occupancy expenses		663		691		598		662		508		2,614		2,077
Equipment expenses		442		437		401		423		456		1,703		1,657
Advertising and marketing expenses		209		317		152		183		309		861		1,038
Stationery and supplies		20		37		35		42		54		134		145
ATM network fees		324		327		332		362		371		1,345		1,530
Other real estate owned expenses		20		—		—		—		—		20		—
Loss on the sale of other real estate owned		51		—		—		—		—		51		—
Loss on the sale of repossessed assets		169		—		—		133		—		302		204
FDIC assessment		200		172		254		322		330		948		1,433
Computer software expense		373		389		325		282		388		1,369		1,068
Bank franchise tax		388		388		381		367		342		1,524		1,353
Professional fees		723		493		641		563		640		2,420		2,065
Data processing fees		558		469		633		550		616		2,210		2,418
Other operating expenses		1,937		1,907		1,802		1,521		1,568		7,167		6,285
Total noninterest expenses	$	15,539	$	14,344	$	13,399	$	12,589	$	13,555	$	55,871	$	51,332
Income (loss) before income taxes	$	5,509	$	6,908	$	6,548	$	(9,040)	$	8,114	$	9,925	$	18,901
Income Tax Expense (Benefit)		1,175		1,324		1,278		(2,066)		1,928		1,711		3,558
Net income (loss)	$	4,334	$	5,584	$	5,270	$	(6,974)	$	6,186	$	8,214	$	15,343
Earnings (Loss) Per Share
Net income (loss) per common share, basic	$	0.81	$	1.04	$	0.98	$	(1.53)	$	1.74	$	1.59	$	4.32
Net income (loss) per common share, diluted	$	0.81	$	1.04	$	0.98	$	(1.53)	$	1.74	$	1.59	$	4.32


*	Derived from audited consolidated financial statements.

EAGLE FINANCIAL SERVICES, INC.
Average Balances, Income and Expenses, Yields and Rates (unaudited)

	For the Three Months Ended
	December 31, 2025							December 31, 2024
			Interest							Interest
	Average		Income/		Average			Average		Income/		Average
Assets:	Balance		Expense		Yield			Balance		Expense		Yield
Securities:
Taxable	$	124,490	$	1,334		4.25	%	$	135,391	$	874		2.57	%
Tax-Exempt (1)		—		—		—	%		497		5		4.04	%
Total Securities	$	124,490	$	1,334		4.25	%	$	135,888	$	879		2.57	%
Loans:
Taxable	$	1,445,196	$	21,172		5.81	%	$	1,466,603	$	21,047		5.71	%
Non-accrual		12,294		—		—	%		2,355		—		—	%
Tax-Exempt (1)		9,504		122		5.09	%		10,153		129		5.04	%
Total Loans	$	1,466,994	$	21,294		5.76	%	$	1,479,111	$	21,176		5.70	%
Federal funds sold and interest-bearing deposits in other banks		214,010		2,153		3.99	%		158,193		1,966		4.94	%
Total earning assets	$	1,805,494	$	24,781		5.45	%	$	1,773,192	$	24,021		5.39	%
Allowance for credit losses		(15,038)							(15,299)
Total non-earning assets		109,485							110,704
Total assets	$	1,899,941						$	1,868,597
Liabilities and Shareholders’ Equity:
Interest-bearing deposits:
NOW accounts	$	308,621	$	1,696		2.18	%	$	267,207	$	1,527		2.27	%
Money market accounts		278,231		1,522		2.17	%		268,846		1,557		2.30	%
Savings accounts		123,577		34		0.11	%		131,541		37		0.11	%
Time deposits:
$250,000 and more		177,078		1,780		3.99	%		171,735		1,976		4.58	%
Less than $250,000		266,630		2,494		3.71	%		303,617		3,399		4.45	%
Total interest-bearing deposits	$	1,154,137	$	7,526		2.59	%	$	1,142,946	$	8,496		2.96	%
Federal funds purchased		1		—	n/m				5		—	n/m
Federal Home Loan Bank advances		40,000		494		4.90	%		141,739		1,644		4.62	%
Subordinated debt		29,568		354		4.75	%		29,501		354		4.78	%
Total interest-bearing liabilities	$	1,223,706	$	8,374		2.71	%	$	1,314,191	$	10,494		3.18	%
Noninterest-bearing liabilities:
Demand deposits		464,564							418,505
Other Liabilities		24,408							19,245
Total liabilities	$	1,712,678						$	1,751,941
Shareholders’ equity		187,263							116,656
Total liabilities and shareholders’ equity	$	1,899,941						$	1,868,597
Net interest income			$	16,407						$	13,527
Net interest spread						2.74	%						2.21	%
Interest expense as a percent of average earning assets						1.84	%						2.35	%
Net interest margin						3.61	%						3.03	%

N/M – Not meaningful

(1) Non-GAAP financial measure – Income and yields are reported on tax-equivalent basis using a federal tax rate of 21%. Please refer to the “Reconciliation of Tax-Equivalent Net Interest Income” table for additional information.

EAGLE FINANCIAL SERVICES, INC.
Reconciliation of Tax-Equivalent Net Interest Income (unaudited)

	Three Months Ended
	12/31/2025		9/30/2025		6/30/2025		3/31/2025		12/31/2024
GAAP Financial Measurements:
Interest Income – Loans	$	21,268	$	20,722	$	20,409	$	19,971	$	21,148
Interest Income – Securities and Other Interest- Earnings Assets		3,487		5,211		4,406		3,531		2,846
Interest Expense – Deposits		7,526		7,886		8,263		8,504		8,496
Interest Expense – Other Borrowings		848		848		854		1,662		1,999
Total Net Interest Income	$	16,381	$	17,199	$	15,698	$	13,336	$	13,499
Non-GAAP Financial Measurements:
Add: Tax Benefit on Tax-Exempt Interest Income – Loans	$	26	$	25	$	26	$	27	$	27
Add: Tax Benefit on Tax-Exempt Interest Income – Securities		—		—		—		1		1
Total Tax Benefit on Tax-Exempt Interest Income	$	26	$	25	$	26	$	28	$	28
Tax-Equivalent Net Interest Income	$	16,407	$	17,224	$	15,724	$	13,364	$	13,527

EAGLE FINANCIAL SERVICES, INC.
Reconciliation of Efficiency Ratio (unaudited)

	Three Months Ended
(Dollars in thousands)	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Summary of Operating Results:
Noninterest expenses (GAAP)	$	15,539		$	14,344		$	13,399		$	12,589		$	13,555
Less: Loss on sale of other real estate loans and repossessed assets		220			—			—			133			—
Adjusted noninterest expenses (non-GAAP)	$	15,319		$	14,344		$	13,399		$	12,456		$	13,555

Net interest income		16,381			17,199			15,698			13,336			13,499

Noninterest income (loss) (GAAP)		5,355			5,165			4,917			(8,554)			8,521
Less: (Loss) gain on the sale and disposal of premises and equipment		(1)			(2)			—			(16)			3,874
Less: (Loss) on the sale of securities		—			—			—			(12,425)			—
Adjusted noninterest income (non-GAAP)	$	5,356		$	5,167		$	4,917		$	3,887		$	4,647
Tax equivalent adjustment ⁽¹⁾		26			25			26			28			28
Total net interest income and noninterest income, adjusted (non-GAAP)	$	21,763		$	22,391		$	20,641		$	17,251		$	18,174

Efficiency ratio		70.39	%		64.06	%		64.91	%		72.20	%		74.58	%

(1) Non-GAAP financial measure -Includes tax-equivalent adjustments on loans and securities using the federal statutory tax rate of 21%.

EAGLE FINANCIAL SERVICES, INC.
Reconciliation of GAAP to Non-GAAP Performance Highlights (unaudited)

	Three Months Ended
(dollars in thousands except for per share data)	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
GAAP Financial Measurements:
GAAP Net income (loss)	$	4,334		$	5,584		$	5,270		$	(6,974)		$	6,186
Adjustments to net income (loss):
Loss on sales of securities		—			—			—			12,425			—
(Gain) on sale of Old Town Center (sales leaseback)		—			—			—			—			(3,874)
Tax effect of adjustments to net income		—			—			—			(2,609)			813
Non-GAAP Net income	$	4,334		$	5,584		$	5,270		$	2,842		$	3,125

GAAP Noninterest income (loss)	$	5,355		$	5,165		$	4,917		$	(8,554)		$	8,521
Adjustments to noninterest income (loss):
Loss on sales of securities		—			—			—			12,425			—
(Gain) on sale of Old Town Center (sales leaseback)		—			—			—			—			(3,874)
Non-GAAP Noninterest income	$	5,355		$	5,165		$	4,917		$	3,871		$	4,647

Earnings per share, basic and diluted	$	0.81		$	1.04		$	0.98		$	(1.53)		$	1.74
Effect of adjustments to net income		—			—			—			2.15			(0.86)
Non-GAAP Earnings per share, basic and diluted	$	0.81		$	1.04		$	0.98		$	0.62		$	0.88

Annualized return on average equity		9.18	%		12.20	%		11.93	%		(20.75)	%		21.10	%
Effect of adjustments to net income		0.00	%		0.00	%		0.00	%		29.21	%		(10.44)	%
Non-GAAP Annualized return on average equity		9.18	%		12.20	%		11.93	%		8.46	%		10.66	%

Annualized return on average assets		0.91	%		1.10	%		1.09	%		(1.48)	%		1.32	%
Effect of adjustments to net income		0.00	%		0.00	%		0.00	%		2.07	%		(0.65)	%
Non-GAAP Annualized return on average assets		0.91	%		1.10	%		1.09	%		0.59	%		0.67	%

View original content to download multimedia:https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2025-fourth-quarter-financial-results-302670419.html

SOURCE Eagle Financial Services, Inc.

First Bank Announces Fourth Quarter 2025 Net Income of $12.3 Million and Full Year Net Income of $43.7 Million

FIRST BANK on February 5, 2026

Strong net interest margin and operating efficiency support tangible book value expansion

Dividend increase declared

HAMILTON, N.J., Jan. 26, 2026 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (“the Bank”) today announced results for the fourth quarter of 2025. Net income for the fourth quarter of 2025 was $12.3 million, or $0.49 per diluted share, compared to $10.5 million, or $0.41 per diluted share, for the fourth quarter of 2024. Return on average assets, return on average equity and return on average tangible equityⁱ for the fourth quarter of 2025 were 1.21%, 11.11% and 12.58%, respectively, compared to 1.10%, 10.27% and 11.82%, respectively, for the fourth quarter of 2024.

Full year 2025 net income was $43.7 million, or $1.74 per diluted share, compared to $42.2 million, or $1.67 per diluted share for 2024. Return on average assets, return on average equity and return on average tangible equity for the full year 2025 were 1.11%, 10.26% and 11.69%, respectively, compared to 1.15%, 10.77% and 12.50%, respectively, for the full year 2024.

Fourth Quarter 2025 Performance Highlights:

Total loans were $3.29 billion at December 31, 2025, increasing $149.0 million, or 4.7%, from December 31, 2024, and decreasing $80.7 million from the linked quarter ended September 30, 2025. Elevated levels of payoffs totaling $134.8 million during the fourth quarter of 2025 drove the decline in loans. This level of payoffs was almost as much as the total for the first nine months of 2025 which totaled $149.9 million.

Total deposits were $3.20 billion at December 31, 2025, increasing $146.4 million, or 4.8%, from December 31, 2024, and decreasing $21.3 million, or 2.6% annualized, from the linked quarter ended September 30, 2025.

Net interest margin measured 3.74% for the fourth quarter of 2025, increasing three basis points compared to 3.71% for the linked quarter. Net interest margin measured 3.69% for the full year 2025, increasing 12 basis points compared to 3.57% for the full year 2024.

Total revenue (net interest income plus non-interest income) of $38.5 million for the fourth quarter of 2025 increased $495,000, or 1.3%, compared to the linked quarter, while full year total revenue was $147.2 million, an increase of $17.3 million, or 13.4%, compared to 2024.

Efficiency ratioⁱⁱ measured 49.46% for the fourth quarter of 2025, improving from 51.81% for the linked quarter and 56.91% for the fourth quarter of 2024.

Tangible book value per shareⁱⁱⁱ grew to $15.81 at December 31, 2025, increasing 12.4%, annualized, from $15.33 at September 30, 2025 and increasing 11.5% from $14.19 at December 31, 2024.

Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “We experienced continued improvement in our core operating trends and we also saw a number of “non-standard” items during the fourth quarter. Our community banking and specialty banking teams continued to execute our strategy to grow deep commercial relationships, building solid loan and deposit pipelines heading into 2026. During the fourth quarter we increased our net interest margin with effective pricing and balance sheet management, even as loan balances retracted amidst elevated payoff activity during the quarter. We operated with an efficiency ratio that remained below 60% for the 26th consecutive quarter, contributing to strong pre-provision net revenue and demonstrating our core operating strength.

“We did see continued softness in the micro/small business credit-scored segment which led to elevated specific reserves and charge-offs in the quarter. Helping to offset those elevated credit costs in the quarter was a $1.9 million gain (booked as a contra expense) related to an OREO property in Florida that we had been carrying for several years at a $0 value. The unusually high payoff activity led to higher than usual prepayment income during the quarter, a short-term boost to help offset the reduction in interest-earning assets. The re-opening of the federal government in the quarter also allowed us to resume SBA loan sales, which helped drive improved non-interest income in the quarter.

“In our largest commercial segments, we continue to see mostly stable asset quality trends, ending the year with a nonperforming asset to total assets ratio of 0.46% which is identical to the ratio we had at the end of 2024. Criticized loans which includes loans classified as substandard and special mention totaled $80.4 million, or 2.44% of loans at December 31, 2025, up from $67.2 million, or 2.15% of loans at December 31, 2024. Unfortunately, we needed to downgrade one $23 million cashflow-based C&I loan to substandard towards the end of the year due to continued challenges with the sales and profitability of the business. While this business has a number of locations that continue to perform well, the overall downward trends drove the need to downgrade and we’re monitoring the situation closely given the cashflow-based nature of the credit.

“When going a level deeper in our risk rating scale, the total balance of pass/watch rated loans declined from $85.7 million at December 31, 2024, to $70.8 million at September 30, 2025 and $57.8 million at December 31, 2025. Combining all three categories, pass/watch, special mention and substandard, our ratio declined from 4.86% at December 31, 2024, to 4.41% at September 30, 2025 and to 4.20% at December 31, 2025. Meanwhile, credit quality in our largest segment, CREI, has been strong and improving with delinquency levels in that portfolio at 0.02% at December 31, 2025. In summary, small business lending has been a challenge but it remains a small portfolio, and we expect things to stabilize throughout 2026. C&I loans have performed well, except for the aforementioned credit that was downgraded and the CREI portfolio is performing very well.”

Mr. Ryan added, “We are focused on efficiency and profitability coupled with sustainable balance sheet growth as we continue our evolution from a traditional community bank into a full-service, middle market commercial bank. In 2025 we grew loans by 4.7% and delivered an 11.5% increase in tangible book value per share, demonstrating our ability to produce meaningful growth in shareholder returns. We are very pleased that our strong performance in 2025 and our expectations for continued strength in 2026 allowed for a 50% increase to our quarterly cash dividend.

“In 2026 we expect to continue investing in our franchise, from technology to talent. Our specialty banking groups are continuing to move closer to scale, while our core community bankers and CRE lending teams are executing their strategies for profitable growth. We have an optimized branch footprint and are positioned to serve our customers with both in-person and digital convenience and excellence. We believe our diverse teams and our balance sheet are positioned to drive healthy growth and strong profitability across a range of economic conditions and interest rate environments, and we expect our ongoing efficiency initiatives will continue to support increased shareholder returns.”

Income Statement

In the fourth quarter of 2025, the Bank’s net interest income increased to $36.2 million, growing $4.6 million, or 14.5%, compared to the same period in 2024. The increase was primarily driven by an increase of $3.5 million in interest income, reflecting higher average loan balances, and a $1.1 million decrease in interest expense, primarily due to a 40 basis point reduction in the cost of interest bearing deposits. Net interest income increased $633,000, or 1.8%, over the linked quarter of 2025. This increase was driven by a decrease of $1.5 million in interest expense, which primarily resulted from an 18 basis point reduction in the cost of interest bearing deposits and lower costs related to the timing of our subordinated debt refinancing in the third quarter of 2025. This was partially offset by an $854,000 decrease in interest income, primarily due to lower average loan balances and yields.

Full year 2025 net interest income totaled $137.8 million, an increase of $15.3 million, or 12.5%, compared to $122.5 million for 2024. The increase was primarily a result of higher interest income from loans due to average loan growth of $267.0 million, or 8.8%, which outpaced the nine basis point decline in average loan yields in 2025. Net interest income growth was additionally supported by a decrease in interest expense due to a 30 basis point decline in the cost of interest bearing deposits, reflective of the lower interest rate environment in 2025. The average annual cost of time, money market, and interest bearing demand deposits decreased 34, 57, and 15 basis points, respectively, while the average cost of savings deposits increased 37 basis points.

The Bank’s tax equivalent net interest margin measured 3.74% for the fourth quarter of 2025, increasing 20 basis points from 3.54% for the fourth quarter of 2024 and increasing three basis points from the third quarter of 2025. Improvement from the prior year quarter was driven by an improved interest rate spread, reflecting declines in average rates on deposits and borrowings which outpaced the reduction in average rates on earning assets. The Bank’s net interest margin improved compared to the linked quarter primarily due to an improved interest rate spread, reflecting declines in average rates on deposits which outpaced the reduction in average rates on earning assets. Net interest margin for the fourth quarter of 2025 also benefited from the decreased cost of subordinated debt related, to the timing of refinancing during the third quarter of 2025. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions and prepayment penalty income. The net purchase accounting impact was $1.6 million in net interest income during the fourth quarter of 2025, compared to $2.6 million for the third quarter of 2025. Prepayment penalty income was $945,000 in the fourth quarter of 2025, compared to $54,000 in the third quarter of 2025.

The full year 2025 tax equivalent net interest margin was 3.69%, an increase of 12 basis points compared to 3.57% for the full year 2024. The increase was principally a result of a 28 basis point decrease in interest bearing liabilities cost, partially offset by a 14 basis point reduction in the yield on interest earning assets.

The Bank recorded a credit loss expense totaling $4.8 million during the fourth quarter of 2025, compared to credit loss expense totaling $3.0 million for the third quarter of 2025 and $234,000 for the fourth quarter of 2024. The increased credit loss expense in the fourth quarter of 2025 was primarily due to additional net charge-offs and increased specific reserves, primary related to the Bank’s small business portfolio. Additionally, during the fourth quarter of 2025, there was a $20.9 million increase in substandard loans, which led to an increased level of reserves, particularly in our C&I portfolio.

For the full year 2025, the Bank reported a credit loss expense of $11.9 million, compared to $1.2 million for 2024. The increase in credit loss expense reflects the higher level of net charge-offs when compared to 2024 and higher provision commensurate with loan growth during the year. Net charge-offs for 2025 totaled $4.2 million, compared to $205,000 for 2024, excluding $5.5 million in a purchase credit deteriorated loan charge-off in the first quarter of 2024, which was reserved through purchase accounting marks at the time of the Malvern acquisition in 2023.

The Bank recorded non-interest income totaling $2.3 million for the fourth quarter of 2025, compared to $2.2 million and $2.4 million for the prior year and linked quarters, respectively. Non-interest income increased by $107,000 compared to the prior year quarter primarily related to higher gains on the sale of loans during the fourth quarter of 2025, partially offset by lower loan fees. Non-interest income decreased by $138,000 from the linked quarter primarily due to lower gains on the recovery of acquired loans, partially offset by higher loan fees and gains on the sale of loans during the fourth quarter of 2025.

Non-interest income for the full year ended December 31, 2025 totaled $9.4 million, increasing $2.1 million, or 28.3%, compared to $7.3 million for the full year ended December 31, 2024. $1.7 million of the increase related to $666,000 in net gains on the sale of loans recorded in 2025, compared to $1.1 million in net losses realized on the sale of loans and investment securities in 2024. Additionally, in 2025 the Bank recorded $1.0 million in gains on the recovery of acquired loans and gains on the sale of other assets, compared to $270,000 recorded in 2024. The increase in non-interest income was partially offset by a $1.0 million reduction in income earned from bank-owned life insurance (“BOLI”) in 2025 due to elevated BOLI gains recognized in 2024 related to restructuring of the Bank’s BOLI assets.

Non-interest expense for the fourth quarter of 2025 was $17.1 million, decreasing $2.0 million, or 10.7%, compared to $19.1 million for the fourth quarter of 2024. The decrease was primarily due to a $1.9 million gain related to the sale of an Other Real Estate Owned (“OREO”) asset that was acquired in 2019 and was held at no carrying value. Salaries and employee benefits expense increased $469,000 compared to the prior year quarter, while other operating expense categories declined in total, reflecting the Bank’s effective expense management in 2025.

Non-interest expense decreased $2.6 million from $19.7 million in the third quarter of 2025. The linked quarter decline was principally due to the aforementioned $1.9 million OREO gain recorded during the fourth quarter of 2025, coupled with a $400,000 decrease in salaries and employee benefits primarily due to lower bonus expense in the quarter. Declines across other expense categories were primarily related to ongoing implementation of efficiency initiatives during the fourth quarter.

Non-interest expense for the full year 2025 totaled $78.0 million, an increase of $4.5 million, or 6.1%, compared to $73.5 million for 2024. The increase was primarily a result of salaries and employee benefits costs increasing $4.7 million due to a larger employee base and occupancy and equipment costs rising $1.0 million primarily due to branch optimization efforts. These efforts included three new branch locations, two branch closures/consolidations and one branch relocation. This was partially offset by the aforementioned $1.9 million OREO gain and lower professional fees in 2025.

Income tax expense for the three months ended December 31, 2025 was $4.3 million with an effective tax rate of 25.7%, compared to $3.9 million with an effective tax rate of 27.2% for the fourth quarter of 2024. Income tax expense for the fourth quarter of 2024 was elevated primarily due to the impact of the BOLI restructuring completed in 2024. Income tax expense for the full year ended December 31, 2025 was $13.6 million with an effective tax rate of 23.8%, compared to $12.9 million with an effective tax rate of 23.4% for the full year ended December 31, 2024. The fourth quarter 2025 tax rate was higher than the full year rate due to some year-end adjustments primarily related to state tax allocations and tax credit activity. We anticipate our future effective tax rate will be approximately 24-25%.

Balance Sheet

The Bank reported total assets of $3.96 billion at December 31, 2025, an increase of $180.3 million, or 4.8%, from $3.78 billion at December 31, 2024. Total loans increased $149.0 million, or 4.7%, over the same period, reflecting strong organic growth, particularly in the commercial and industrial (“C&I”) portfolio, partially offset by elevated payoffs during the fourth quarter. The Bank’s cash and cash equivalents increased by $37.3 million, or 13.7%, compared to December 31, 2024, as management continued to maintain adequate on-balance sheet liquidity.

Total assets decreased $72.0 million during the fourth quarter of 2025 primarily due to a net decline in loans of $80.7 million. The decline in loans was driven by an elevated level of payoffs totaling $134.8 million. New loan activity continued to be robust. Cash and cash equivalents also decreased by $9.7 million compared to September 30, 2025.

The Bank reported total deposits of $3.20 billion as of December 31, 2025, an increase of $146.4 million, or 4.8%, from $3.06 billion at December 31, 2024. Deposit growth was primarily due to our team’s success in attracting new deposit relationships and maintaining existing balances amid heightened industry-wide pricing competition, partially offset by the Bank’s strategic decision to allow certain higher-cost and non-core funding to leave the Bank. Compared to December 31, 2024, non-interest bearing demand deposits increased by $53.0 million to comprise 17.9% of total deposits, up from 17.0%. Over the same period, interest bearing demand deposits decreased by $21.0 million to comprise 19.0% of total deposits at December 31, 2025, down from 20.6% at December 31, 2024. Money market and savings deposits increased by $7.2 million to comprise 37.6% of total deposits at December 31, 2025, down from 39.2% at December 31, 2024. Time deposits increased by $107.2 million to comprise 25.5% at December 31, 2025, up from 23.2% at December 31, 2024.

During the fourth quarter of 2025, total deposits declined by $21.3 which included a decline of $6.0 million in non-interest bearing deposits and $15.3 million in interest bearing balances. The decline in interest bearing balances was primarily due to a reduction in brokered time deposits as the elevated level of loan pay offs put less pressure on funding needs. The decline in non-interest bearing balances was primarily due to year-end deposit fluctuations in existing accounts.

During the twelve months ended December 31, 2025, stockholders’ equity increased by $34.3 million, or 8.4%, primarily due to net income, partially offset by dividends and share repurchases.

As of December 31, 2025, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.75%, a Tier 1 Risk-Based capital ratio of 10.67%, a Common Equity Tier 1 Capital ratio of 10.67%, and a Total Risk-Based capital ratio of 12.88%. The tangible stockholders’ equity to tangible assets ratio^iv measured 10.03% as of December 31, 2025 compared to 9.56% at December 31, 2024.

Asset Quality

Total nonperforming assets increased from $17.3 million at December 31, 2024 to $18.4 million at December 31, 2025, due to the addition of nonperforming loans, partially offset by sale of the Bank’s OREO assets during the year. Total nonperforming loans increased from $11.7 million at December 31, 2024 to $18.4 million at December 31, 2025. During the fourth quarter of 2025, nonperforming loans increased $4.0 million primarily in nonperforming small business loans.

The Bank recorded net charge-offs of $1.7 million during the fourth quarter of 2025, compared to net charge-offs of $1.7 million during the third quarter of 2025 and net recoveries of $155,000 in the fourth quarter of 2024. Fourth quarter and full year 2025 net charge-offs primarily reflect losses in the Bank’s small business portfolio. The allowance for credit losses on loans as a percentage of total loans measured 1.38% at December 31, 2025, compared to 1.25% at September 30, 2025 and 1.20% at December 31, 2024. In addition to the impact of charge-offs, the increase in the allowance percentage from September 30, 2025 reflects a $2.7 million increase in specific reserves from $2.1 million at September 30, 2025 to $4.7 million at December 31, 2025. The increase in specific reserves relates to reserves against nonperforming small business loans.

Total criticized loans which includes loans classified as substandard and special mention totaled $80.4 million, or 2.44% of loans at December 31, 2025, compared to $71.6 million, or 2.12% of loans at September 30, 2025 and $67.1 million or 2.13% of loans at December 31, 2024. The increase was primarily attributable to a large C&I loan that was downgraded to substandard during the fourth quarter but continued to make current payments through December 31, 2025.

Liquidity and Borrowings

Management believes the Bank’s current on-balance sheet liquidity position, coupled with our various contingent funding sources, provides the Bank with a strong liquidity base and a diverse source of funding options. The Bank’s cash and cash equivalents decreased by $9.7 million, or 3.0%, compared to September 30, 2025, reflecting the use of some excess funds to pay off higher cost borrowing sources and reallocate some cash balances into the investment portfolio. Borrowings decreased by $65.1 million compared to September 30, 2025, due to the Bank’s reduced Federal Home Loan Bank (“FHLB”) advances, which drove higher available borrowing capacity at the FHLB.

Increased Cash Dividend Declared

On January 21, 2026, the Bank’s Board of Directors declared a quarterly cash dividend of $0.09 per share to common stockholders of record at the close of business on February 6, 2026, payable on February 20, 2026. This reflects an increase compared to the Bank’s prior quarterly cash dividend of $0.06 per share.

Share Repurchase Program

The Board of Directors authorized and the Bank received final regulatory approvals on November 7, 2025 for a new share repurchase program, allowing for the repurchase of up to 1.2 million shares of First Bank common stock with an aggregate repurchase amount of up to $20.4 million. The repurchase program expires September 30, 2026. The Bank did not repurchase shares of common stock during the fourth quarter of 2025. The timing, price and volume of any future repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. Any stock repurchase program does not require the Bank to repurchase any specific number of shares, and the Bank may terminate any active repurchase program at any time.

Conference Call and Earnings Release Supplement

Additional details on the quarterly results and the Bank are included in the attached earnings release supplement.

http://ml.globenewswire.com/Resource/Download/3b1ba25e-3fd7-4497-8aaa-56eb8a5d7eec

First Bank will host its earnings call on Tuesday, January 27, 2026 at 9:00 AM Eastern Time. The direct dial number for the call is 1-800-715-9871, toll free, using the access code 2389718. The conference call will also be available (listen-only) via the internet by accessing FRBA Conference Calls. For those unable to participate in the call, a replay will be available on the Bank’s website, www.myfirstbank.com. The conference call will also be available (listen-only) via the Internet by accessing FRBA conference call. The conference call information is also available by accessing the Bank’s website: www.myfirstbank.com, on the – “Investor Relations” page.

About First Bank

First Bank is a New Jersey state-chartered bank with a branch network that traverses the New York to Philadelphia corridor and includes a single location in Palm Beach County, Florida. With $3.96 billion in assets as of December 31, 2025, First Bank offers a full range of deposit and loan products to individuals and businesses in its markets. First Bank’s common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding First Bank’s future financial and business performance, business and growth strategy, projected plans, objectives for our business, products and risk management, integration of the acquired businesses and anticipated results related thereto, our ability to recognize anticipated operational efficiencies, our market presence and desirability of the markets we operate in, competition in our markets, our competitive strength, consumers behavior and relative expectations, our share repurchase programs, anticipated changes in statutes, regulations or regulatory policies applicable to us and their impacts on our business, and other projections based on macroeconomic and industry conditions and trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward- looking statements include the foregoing. Further, certain important factors that could affect First Bank’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets, consummating and integrating suitable acquisitions and realizing anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of inflation, declines in housing markets and public sentiment regarding the financial services industry; the chance that we may experience material weaknesses in our internal control over financial reporting or otherwise fail to maintain an effective system of internal controls in the future; an increase in unemployment levels and slowdowns in economic growth; First Bank’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; changes in market interest rates may increase funding costs or reduce earning asset yields thus reducing margin; the impact of changes in interest rates, both up and down, and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank’s investment securities portfolio; decreases in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; operational risks, including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemic; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank’s operations, including the effect of any changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank’s ability to comply with applicable capital and liquidity requirements, including the ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, accounting standards, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks, uncertainties, and assumptions, including the important factors that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

This press release contains “non-GAAP” financial measures, which management uses in its analysis of First Bank’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, First Bank believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the accompanying financial tables.

ⁱ Return on average tangible equity is a non-GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱ The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ Tangible book value per share is a non-GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

^iv Tangible stockholders’ equity to tangible assets ratio is a non-GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.


FIRST BANK CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data, unaudited)

	Year Ended December 31,
	2025			2024
Assets
Cash and due from banks	$	22,141		$	18,252
Restricted cash		7,780			14,270
Interest bearing deposits with banks		279,299			239,392
Cash and cash equivalents		309,220			271,914
Interest bearing time deposits with banks		747			743
Investment securities available for sale, at fair value (amortized cost of $108,635 and $84,083, respectively)		104,740			77,413
Investment securities held to maturity, net of allowance for credit losses of $163 and $206, respectively (fair value of $37,866 and $42,770, respectively)		40,424			47,123
Equity securities, at fair value		1,930			1,870
Restricted investment in bank stocks		13,877			14,333
Other investments		16,033			11,612
Loans, net of deferred fees and costs		3,293,225			3,144,266
Less: Allowance for credit losses on loans		(45,384	)		(37,773	)
Net loans		3,247,841			3,106,493
Premises and equipment, net		18,367			21,351
Other real estate owned, net		–			5,637
Accrued interest receivable		14,382			14,267
Bank-owned life insurance		88,475			85,553
Goodwill		44,166			44,166
Other intangible assets, net		7,124			8,827
Deferred income taxes, net		22,623			25,528
Other assets		28,087			43,516
Total assets	$	3,958,036		$	3,780,346

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	572,349		$	519,320
Interest bearing deposits		2,629,959			2,536,576
Total deposits		3,202,308			3,055,896
Borrowings		236,672			246,933
Subordinated debentures		34,384			29,954
Accrued interest payable		4,763			3,820
Other liabilities		36,407			34,587
Total liabilities		3,514,534			3,371,190

Commitments and Contingencies		–			–

Stockholders’ Equity:
Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding		–			–
Common stock, par value $5 per share; 40,000,000 shares authorized; 27,643,986 shares issued and 24,800,244 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively		136,788			135,495
Additional paid-in capital		126,334			124,524
Retained earnings		214,458			176,779
Accumulated other comprehensive loss		(2,875	)		(4,925	)
Treasury stock, 2,843,742 and 2,274,610 shares, respectively		(31,203	)		(22,717	)
Total stockholders’ equity		443,502			409,156
Total liabilities and stockholders’ equity	$	3,958,036		$	3,780,346

FIRST BANK CONSOLIDATED STATEMENTS OF INCOME (in thousands, except for share data, unaudited)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2025			2024		2025			2024
Interest and Dividend Income
Investment securities—taxable	$	1,219		$	1,119	$	4,878		$	4,780
Investment securities—tax-exempt		43			48		167			157
Interest bearing deposits with banks, Federal funds sold and other		3,803			4,088		13,930			14,567
Loans, including fees		55,255			51,584		217,475			202,623
Total interest and dividend income		60,320			56,839		236,450			222,127

Interest Expense
Deposits		20,926			22,440		84,839			88,693
Borrowings		2,566			2,365		10,913			9,224
Subordinated debentures		651			440		2,876			1,664
Total interest expense		24,143			25,245		98,628			99,581
Net interest income		36,177			31,594		137,822			122,546
Credit loss expense		4,789			234		11,889			1,178
Net interest income after credit loss expense		31,388			31,360		125,933			121,368

Non-Interest Income
Service fees on deposit accounts		377			369		1,501			1,425
Loan fees		322			436		1,357			873
Income from bank-owned life insurance		754			825		3,010			4,038
Losses on sale of investment securities, net		–			–		–			(555	)
Gains (losses) on sale of loans, net		352			38		666			(498	)
Gains on recovery of acquired loans		44			61		649			270
Gain on sale of other assets		–			–		397			–
Other non-interest income		434			447		1,797			1,755
Total non-interest income		2,283			2,176		9,377			7,308

Non-Interest Expense
Salaries and employee benefits		10,981			10,512		45,439			40,693
Occupancy and equipment		2,352			2,262		9,495			8,450
Legal fees		213			230		1,144			1,031
Other professional fees		704			1,151		3,136			3,779
Regulatory fees		643			635		2,665			2,605
Directors’ fees		260			288		1,063			1,072
Data processing		685			791		3,112			3,146
Marketing and advertising		243			372		1,515			1,355
Travel and entertainment		300			269		1,057			1,031
Insurance		207			250		871			990
Other real estate owned expense, net		(1,938	)		139		(949	)		1,018
Other expense		2,435			2,225		9,458			8,361
Total non-interest expense		17,085			19,124		78,006			73,531
Income Before Income Taxes		16,586			14,412		57,304			55,145
Income tax expense		4,262			3,915		13,645			12,901
Net Income	$	12,324		$	10,497	$	43,659		$	42,244

Basic earnings per common share	$	0.50		$	0.42	$	1.75		$	1.68
Diluted earnings per common share	$	0.49		$	0.41	$	1.74		$	1.67

Basic weighted average common shares outstanding		24,807,303			25,160,097		24,948,588			25,126,100
Diluted weighted average common shares outstanding		24,965,492			25,323,401		25,099,404			25,283,771

FIRST BANK AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES (dollars in thousands, unaudited)

	Three Months Ended December 31,
	2025									2024
	Average						Average			Average						Average
	Balance			Interest			Rate⁽⁵⁾			Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities⁽¹⁾⁽²⁾	$	133,719		$	1,271			3.77	%	$	126,400		$	1,177			3.70	%
Loans⁽³⁾		3,338,838			55,255			6.57	%		3,101,750			51,584			6.62	%
Interest bearing deposits with banks,
Federal funds sold and other		338,424			3,373			3.95	%		301,565			3,648			4.81	%
Restricted investment in bank stocks		15,086			293			7.71	%		13,181			291			8.78	%
Other investments		16,390			137			3.32	%		13,199			149			4.49	%
Total interest earning assets⁽²⁾		3,842,457			60,329			6.23	%		3,556,095			56,849			6.36	%
Allowance for credit losses		(42,486	)								(37,895	)
Non-interest earning assets		247,873									270,689
Total assets	$	4,047,844								$	3,788,889

Interest bearing liabilities
Interest bearing demand deposits	$	609,358		$	3,615			2.35	%	$	629,374		$	4,244			2.68	%
Money market deposits		1,061,255			8,227			3.08	%		1,087,031			9,706			3.55	%
Savings deposits		147,893			736			1.97	%		148,265			695			1.86	%
Time deposits		866,724			8,348			3.82	%		696,803			7,795			4.45	%
Total interest bearing deposits		2,685,230			20,926			3.09	%		2,561,473			22,440			3.49	%
Borrowings		256,720			2,566			3.97	%		215,699			2,365			4.36	%
Subordinated debentures		34,362			651			7.58	%		29,936			440			5.88	%
Total interest bearing liabilities		2,976,312			24,143			3.22	%		2,807,108			25,245			3.58	%
Non-interest bearing deposits		586,236									531,836
Other liabilities		45,237									43,366
Stockholders’ equity		440,059									406,579
Total liabilities and stockholders’ equity	$	4,047,844								$	3,788,889
Net interest income/interest rate spread⁽²⁾					36,186			3.01	%					31,604			2.78	%
Net interest margin⁽²⁾⁽⁴⁾								3.74	%								3.54	%
Tax equivalent adjustment⁽²⁾					(9	)								(10	)
Net interest income				$	36,177								$	31,594

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES (dollars in thousands, unaudited)

	Year Ended December 31,
	2025									2024
	Average						Average			Average						Average
	Balance			Interest			Rate			Balance			Interest			Rate
Interest earning assets
Investment securities⁽¹⁾⁽²⁾	$	133,298		$	5,080			3.81	%	$	139,222		$	4,970			3.57	%
Loans⁽³⁾		3,289,505			217,475			6.61	%		3,022,503			202,623			6.70	%
Interest bearing deposits with banks,
Federal funds sold and other		284,162			12,226			4.30	%		248,866			13,052			5.24	%
Restricted investment in bank stocks		15,690			1,204			7.67	%		11,893			990			8.32	%
Other investments		15,399			500			3.25	%		12,498			525			4.20	%
Total interest earning assets⁽²⁾		3,738,054			236,485			6.33	%		3,434,982			222,160			6.47	%
Allowance for credit losses		(40,307	)								(37,224	)
Non-interest earning assets		252,301									266,705
Total assets	$	3,950,048								$	3,664,463

Interest bearing liabilities
Interest bearing demand deposits	$	605,400		$	14,758			2.44	%	$	606,654		$	15,697			2.59	%
Money market deposits		1,069,287			35,008			3.27	%		1,056,996			40,627			3.84	%
Savings deposits		144,883			2,860			1.97	%		154,367			2,475			1.60	%
Time deposits		798,969			32,213			4.03	%		684,369			29,894			4.37	%
Total interest bearing deposits		2,618,539			84,839			3.24	%		2,502,386			88,693			3.54	%
Borrowings		269,395			10,913			4.05	%		190,354			9,224			4.85	%
Subordinated debentures		38,517			2,876			7.47	%		33,031			1,664			5.04	%
Total interest bearing liabilities		2,926,451			98,628			3.37	%		2,725,771			99,581			3.65	%
Non-interest bearing deposits		556,623									504,238
Other liabilities		41,261									42,322
Stockholders’ equity		425,713									392,132
Total liabilities and stockholders’ equity	$	3,950,048								$	3,664,463
Net interest income/interest rate spread⁽²⁾					137,857			2.96	%					122,579			2.82	%
Net interest margin⁽²⁾⁽⁴⁾								3.69	%								3.57	%
Tax equivalent adjustment⁽²⁾					(35	)								(33	)
Net interest income				$	137,822								$	122,546

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)

	As of or For the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
EARNINGS
Net interest income	$	36,177		$	35,544		$	34,009		$	32,092		$	31,594
Credit loss expense		4,789			2,998			2,558			1,544			234
Non-interest income		2,283			2,421			2,702			1,971			2,176
Non-interest expense		17,085			19,670			20,867			20,384			19,124
Income tax expense		4,262			3,582			3,047			2,754			3,915
Net income		12,324			11,715			10,239			9,381			10,497

PERFORMANCE RATIOS
Return on average assets⁽¹⁾		1.21	%		1.16	%		1.04	%		1.00	%		1.10	%
Return on average equity⁽¹⁾		11.11	%		10.85	%		9.77	%		9.20	%		10.27	%
Return on average tangible equity^{(1) (2)}		12.58	%		12.35	%		11.16	%		10.54	%		11.82	%
Net interest margin^{(1) (3)}		3.74	%		3.71	%		3.65	%		3.65	%		3.54	%
Yield on loans⁽¹⁾		6.57	%		6.66	%		6.62	%		6.59	%		6.62	%
Total cost of deposits⁽¹⁾		2.54	%		2.69	%		2.72	%		2.75	%		2.89	%
Efficiency ratio⁽²⁾		49.46	%		51.81	%		56.13	%		57.60	%		56.91	%

SHARE DATA
Common shares outstanding		24,800,244			24,799,049			24,905,790			25,045,612			25,100,829
Basic earnings per share	$	0.50		$	0.47		$	0.41		$	0.37		$	0.42
Diluted earnings per share		0.49			0.47			0.41			0.37			0.41
Book value per share		17.88			17.41			16.96			16.57			16.30
Tangible book value per share⁽²⁾		15.81			15.33			14.87			14.47			14.19

MARKET DATA
Market value per share	$	16.46		$	16.29		$	15.47		$	14.81		$	14.07
Market value / Tangible book value		104.08	%		106.24	%		104.03	%		102.35	%		99.16	%
Market capitalization	$	408,212		$	403,977		$	385,293		$	370,926		$	353,169

CAPITAL & LIQUIDITY
Stockholders’ equity / assets		11.21	%		10.71	%		10.51	%		10.69	%		10.82	%
Tangible stockholders’ equity / tangible assets⁽²⁾		10.04	%		9.55	%		9.34	%		9.47	%		9.56	%
Loans / deposits		102.84	%		104.66	%		105.02	%		103.73	%		102.89	%

ASSET QUALITY
Net (recoveries) charge-offs	$	1,686		$	1,737		$	796		$	(15	)	$	(155	)
Nonperforming loans		18,381			14,420			15,978			11,584			11,677
Nonperforming assets		18,381			14,420			15,978			16,406			17,314
Net (recoveries) charge offs / average loans⁽¹⁾		0.20	%		0.21	%		0.10	%		(0.00	%)		(0.02	%)
Nonperforming loans / total loans		0.56	%		0.43	%		0.48	%		0.36	%		0.37	%
Nonperforming assets / total assets		0.46	%		0.36	%		0.40	%		0.42	%		0.46	%
Allowance for credit losses on loans / total loans		1.38	%		1.25	%		1.23	%		1.21	%		1.20	%
Allowance for credit losses on loans / nonperforming loans		246.91	%		292.73	%		255.83	%		338.60	%		323.48	%

OTHER DATA
Total assets	$	3,958,036		$	4,032,636		$	4,019,335		$	3,880,759		$	3,780,346
Total loans		3,293,225			3,373,910			3,327,288			3,236,039			3,144,266
Total deposits		3,202,308			3,223,607			3,168,213			3,119,794			3,055,896
Total stockholders’ equity		443,502			431,875			422,379			414,915			409,156
Number of full-time equivalent employees		334			332			335			315			318

(1) Annualized.
(2) Non-GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, “Non-GAAP Financial Measures,” for calculation and reconciliation.
(3) Tax equivalent using a federal income tax rate of 21%.

FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS (dollars in thousands, unaudited)

	As of the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
LOAN COMPOSITION
Commercial and industrial	$	727,075		$	740,350		$	706,849		$	651,690		$	576,625
Commercial real estate:
Owner-occupied		662,245			685,277			707,766			694,113			671,357
Investor		1,148,297			1,211,491			1,192,716			1,160,549			1,181,684
Construction and development		193,312			181,855			161,361			200,262			205,096
Multi-family		282,854			284,983			309,189			308,217			287,843
Total commercial real estate		2,286,708			2,363,606			2,371,032			2,363,141			2,345,980
Residential real estate:
Residential mortgage and first lien home equity loans		154,167			151,372			160,935			142,298			142,769
Home equity–second lien loans and revolving lines of credit		72,919			65,129			62,738			52,438			51,020
Total residential real estate		227,086			216,501			223,673			194,736			193,789
Consumer and other		55,862			57,222			29,248			29,760			31,324
Total loans prior to deferred loan fees and costs		3,296,731			3,377,679			3,330,802			3,239,327			3,147,718
Net deferred loan fees and costs		(3,506	)		(3,769	)		(3,514	)		(3,288	)		(3,452	)
Total loans	$	3,293,225		$	3,373,910		$	3,327,288		$	3,236,039		$	3,144,266

LOAN MIX
Commercial and industrial		22.1	%		21.9	%		21.2	%		20.1	%		18.3	%
Commercial real estate:
Owner-occupied		20.1	%		20.3	%		21.3	%		21.5	%		21.4	%
Investor		34.9	%		35.9	%		35.8	%		35.9	%		37.6	%
Construction and development		5.9	%		5.4	%		4.8	%		6.2	%		6.5	%
Multi-family		8.5	%		8.5	%		9.3	%		9.5	%		9.1	%
Total commercial real estate		69.4	%		70.1	%		71.3	%		73.1	%		74.6	%
Residential real estate:
Residential mortgage and first lien home equity loans		4.7	%		4.5	%		4.8	%		4.4	%		4.6	%
Home equity–second lien loans and revolving lines of credit		2.2	%		1.9	%		1.9	%		1.6	%		1.6	%
Total residential real estate		6.9	%		6.4	%		6.7	%		6.0	%		6.2	%
Consumer and other		1.7	%		1.7	%		0.9	%		0.9	%		1.0	%
Net deferred loan fees and costs		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)
Total loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS (dollars in thousands, unaudited)

	As of the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
DEPOSIT COMPOSITION
Non-interest bearing demand deposits	$	572,349		$	578,345		$	590,209		$	535,584		$	519,320
Interest bearing demand deposits		608,076			561,365			553,909			629,974			629,099
Money market and savings deposits		1,205,275			1,228,758			1,241,277			1,197,517			1,198,039
Time deposits		816,608			855,139			782,818			756,719			709,438
Total Deposits	$	3,202,308		$	3,223,607		$	3,168,213		$	3,119,794		$	3,055,896

DEPOSIT MIX
Non-interest bearing demand deposits		17.9	%		18.0	%		18.6	%		17.2	%		17.0	%
Interest bearing demand deposits		19.0	%		17.4	%		17.5	%		20.2	%		20.6	%
Money market and savings deposits		37.6	%		38.1	%		39.2	%		38.4	%		39.2	%
Time deposits		25.5	%		26.5	%		24.7	%		24.2	%		23.2	%
Total Deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK NON-GAAP FINANCIAL MEASURES (in thousands, except for share data, unaudited)

	As of or For the Quarter Ended
	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Return on Average Tangible Equity
Net income (numerator)	$	12,324		$	11,715		$	10,239		$	9,381		$	10,497

Average stockholders’ equity	$	440,059		$	428,359		$	420,443		$	413,672		$	406,579
Less: Average goodwill and other intangible assets, net		51,434			51,882			52,301			52,805			53,278
Average tangible stockholders’ equity (denominator)	$	388,625		$	376,477		$	368,142		$	360,867		$	353,301

Return on average tangible equity⁽¹⁾		12.58	%		12.35	%		11.16	%		10.54	%		11.82	%

Tangible Book Value Per Share
Stockholders’ equity	$	443,502		$	431,875		$	422,379		$	414,915		$	409,156
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible stockholders’ equity (numerator)	$	392,212		$	380,242		$	370,353		$	362,408		$	356,163

Common shares outstanding (denominator)		24,800,244			24,799,049			24,905,790			25,045,612			25,100,829

Tangible book value per share	$	15.81		$	15.33		$	14.87		$	14.47		$	14.19

Tangible Equity / Tangible Assets
Stockholders’ equity	$	443,502		$	431,875		$	422,379		$	414,915		$	409,156
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible stockholders’ equity (numerator)	$	392,212		$	380,242		$	370,353		$	362,408		$	356,163

Total assets	$	3,958,036		$	4,032,636		$	4,019,335		$	3,880,759		$	3,780,346
Less: Goodwill and other intangible assets, net		51,290			51,633			52,026			52,507			52,993
Tangible total assets (denominator)	$	3,906,746		$	3,981,003		$	3,967,309		$	3,828,252		$	3,727,353

Tangible stockholders’ equity / tangible assets		10.04	%		9.55	%		9.34	%		9.47	%		9.56	%

Efficiency Ratio
Non-interest expense	$	17,085		$	19,670		$	20,867		$	20,384		$	19,124
Less: Other real estate owned write-down, net		–			–			–			815			–
Less: Executive officer severance benefits		–			–			863			–			–
Add: Gains on sale of other real estate owned		1,938			–			–			–			–
Adjusted non-interest expense (numerator)	$	19,023		$	19,670		$	20,004		$	19,569		$	19,124

Net interest income	$	36,177		$	35,544		$	34,009		$	32,092		$	31,594
Non-interest income		2,283			2,421			2,702			1,971			2,176
Total revenue		38,460			37,965			36,711			34,063			33,770
Less: Gains on sale of other assets		–			–			(397	)		–			–
Less: Bank Owned Life Insurance Incentive		–			–			–			(88	)		(168	)
Adjusted total revenue (denominator)	$	38,460		$	37,965		$	36,314		$	33,975		$	33,602

Efficiency ratio		49.46	%		51.81	%		55.09	%		57.60	%		56.91	%


(1) Annualized.

FIRST BANK NON-GAAP FINANCIAL MEASURES (in thousands, except for share data, unaudited)

	As of or For the Year Ended
	12/31/2025			12/31/2024
Return on Average Tangible Equity
Net income (numerator)	$	43,659		$	42,244

Average stockholders’ equity	$	425,713		$	392,132
Less: Average goodwill and other intangible assets, net		52,101			54,057
Average tangible stockholders’ equity (denominator)	$	373,612		$	338,075

Return on average tangible equity		11.69	%		12.50	%

CONTACT: Andrew Hibshman, Chief Financial Officer
(609) 643-0058, andrew.hibshman@firstbanknj.com

HOME BANCORP ANNOUNCES 2025 FOURTH QUARTER RESULTS AND DECLARES A QUARTERLY DIVIDEND

HOME BANCORP, INC. on February 5, 2026

HOME BANCORP ANNOUNCES 2025 FOURTH QUARTER RESULTS AND DECLARES A QUARTERLY DIVIDEND

PR Newswire

LAFAYETTE, La., Jan. 26, 2026

LAFAYETTE, La., Jan. 26, 2026 /PRNewswire/ — Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank, N.A. (the “Bank”) (www.home24bank.com), reported financial results for the fourth quarter of 2025. For the quarter, the Company reported net income of $11.4 million, or $1.46 per diluted common share (“diluted EPS”), down $946,000, or 8%, from $12.4 million, or $1.59 diluted EPS, for the third quarter of 2025.

“We are pleased with our overall fourth quarter and full year results,” said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “During the fourth quarter, loan production increased and core deposits grew. Nonperforming assets increased for the quarter, but we do not anticipate any material losses. The net interest margin decreased to 4.06% for the quarter primarily due to lower loan yield and our ability to manage lower funding cost. The majority of our Certificates of Deposit will reprice within 120 days, which should continue to reduce deposit costs and have a positive impact on NIM. We remain well positioned to assist our customers with opportunities in the new year.”

Fourth Quarter 2025 Highlights

Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, (an increase of 6% on an annualized basis), from September 30, 2025.
Deposits totaled $3.0 billion at December 31, 2025, down $2.7 million, or less than 1% for the quarter and on an annualized basis, from September 30, 2025. Core deposits increased $24.5 million, or 1% during the fourth quarter of 2025 to $2.2 billion (an increase of 5% on an annualized basis).
Net interest income in the fourth quarter of 2025 totaled $34.0 million, down $58,000, or less than 1%, from the prior quarter.
The net interest margin (“NIM”) decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% in the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, partially offset by lower funding cost.
Nonperforming assets totaled $36.1 million, or 1.03% of total assets, at December 31, 2025, up $5.2 million, or 17%, from September 30, 2025, primarily due to two loan relationships which were moved to nonaccrual status, partially offset by paydowns in the fourth quarter of 2025.
The Company recorded a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025, compared to a $229,000 reversal to provision in the third quarter of 2025, primarily due to loan growth.
Net loan charge-offs were $165,000 for the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025. Year-to-date net loan charge-offs to average loans was 0.03% for the year ended December 31, 2025.

Loans

Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, from September 30, 2025. The following table summarizes the changes in the Company’s loan portfolio from September 30, 2025 to December 31, 2025.

	December 31,	September 30,	Increase (Decrease)
*(dollars in thousands)*	2025	2025	Amount	Percent
Real estate loans:
One- to four-family first mortgage	$ 493,446	$ 490,600	$ 2,846	1 %
Home equity loans and lines	92,574	86,885	5,689	7
Commercial real estate	1,190,388	1,175,384	15,004	1
Construction and land	329,227	325,725	3,502	1
Multi-family residential	177,825	184,022	(6,197)	(3)
Total real estate loans	2,283,460	2,262,616	20,844	1
Other loans:
Commercial and industrial	430,517	413,590	16,927	4
Consumer	30,046	29,689	357	1
Total other loans	460,563	443,279	17,284	4
Total loans	$ 2,744,023	$ 2,705,895	$ 38,128	1 %

The average loan yield was 6.44% for the fourth quarter of 2025, down 9 basis points from the third quarter of 2025. The average loan yield began to decline in mid-September 2025 following the Federal Reserve rate cuts. Commercial and industrial and commercial real estate loans were the primary drivers for the loan growth during the fourth quarter of 2025. We experienced growth across most of our markets, primarily within our New Orleans and Acadiana markets.

Credit Quality and Allowance for Loan Losses

Nonperforming assets (“NPAs”) totaled $36.1 million, or 1.03% of total assets at December 31, 2025, up $5.2 million, or 17%, from $30.9 million, or 0.88% of total assets, at September 30, 2025. The increase in NPAs during the fourth quarter of 2025 was primarily due to two loan relationships totaling $5.7 million, which were put on nonaccrual during the quarter, partially offset by payoffs and paydowns. The Company recorded net loan charge-offs of $165,000 during the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025.

The Company made a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025 primarily due to loan growth. For the year ended December 31, 2025, provisions to the allowance for loan losses totaled $1.1 million. At December 31, 2025, the allowance for loan losses totaled $33.1 million, or 1.21% of total loans, compared to $32.8 million, or 1.21% of total loans, at September 30, 2025. Changes in expected losses are based on various factors, including the changing economic activity, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company’s loan portfolio by credit quality classification as of December 31, 2025 and September 30, 2025.

	December 31, 2025
*(dollars in thousands)*	Pass	Special Mention	Substandard	Total
One- to four-family first mortgage	$ 486,453	$ —	$ 6,993	$ 493,446
Home equity loans and lines	91,232	811	531	92,574
Commercial real estate	1,155,097	2,947	32,344	1,190,388
Construction and land	312,994	866	15,367	329,227
Multi-family residential	176,227	—	1,598	177,825
Commercial and industrial	426,265	—	4,252	430,517
Consumer	30,000	—	46	30,046
Total	$ 2,678,268	$ 4,624	$ 61,131	$ 2,744,023

	September 30, 2025
*(dollars in thousands)*	Pass	Special Mention	Substandard	Total
One- to four-family first mortgage	$ 483,737	$ —	$ 6,863	$ 490,600
Home equity loans and lines	85,877	—	1,008	86,885
Commercial real estate	1,140,742	3,067	31,575	1,175,384
Construction and land	314,986	892	9,847	325,725
Multi-family residential	182,731	—	1,291	184,022
Commercial and industrial	406,591	—	6,999	413,590
Consumer	29,629	—	60	29,689
Total	$ 2,644,293	$ 3,959	$ 57,643	$ 2,705,895

Investment Securities

The Company’s investment securities portfolio totaled $392.5 million at December 31, 2025, an increase of $8.1 million, or 2%, from September 30, 2025. At December 31, 2025, the Company had a net unrealized loss position on its investment securities of $23.4 million, compared to a net unrealized loss of $26.5 million at September 30, 2025. The Company’s investment securities portfolio had an effective duration of 3.3 years and 3.5 years at December 31, 2025 and September 30, 2025, respectively. The Company made securities purchases of $14.4 million during the fourth quarter of 2025, compared to $4.3 million during third quarter of 2025. The Company had no securities sales during the year ended December 31, 2025.

The following table summarizes the composition of the Company’s investment securities portfolio at December 31, 2025.

*(dollars in thousands)*	Amortized Cost	Fair Value
Available for sale:
U.S. agency mortgage-backed	$ 284,749	$ 267,650
Collateralized mortgage obligations	61,185	60,327
Municipal bonds	53,018	48,147
U.S. government agency	11,441	11,003
Corporate bonds	4,491	4,321
Total available for sale	$ 414,884	$ 391,448
Held to maturity:
Municipal bonds	$ 1,065	$ 1,066
Total held to maturity	$ 1,065	$ 1,066

Approximately 36% of the investment securities portfolio was pledged as of December 31, 2025 to secure public deposits. As of December 31, 2025 and September 30, 2025, the Company had $140.1 million and $140.2 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $3.0 billion at December 31, 2025, down $2.7 million, or less than 1%, from September 30, 2025. Non-maturity deposits increased $24.5 million, or 1%, during the fourth quarter of 2025 to $2.2 billion. The following table summarizes the changes in the Company’s deposits from September 30, 2025 to December 31, 2025.


	December 31,	September 30,	Increase/(Decrease)
*(dollars in thousands)*	2025	2025	Amount	Percent
Demand deposits	$ 792,951	$ 801,974	$ (9,023)	(1) %
Savings	201,265	200,135	1,130	1
Money market	518,740	499,404	19,336	4
NOW	654,227	641,204	13,023	2
Certificates of deposit	805,623	832,786	(27,163)	(3)
Total deposits	$ 2,972,806	$ 2,975,503	$ (2,697)	— %

The average rate on interest-bearing deposits decreased 6 basis points from 2.57% for the third quarter of 2025 to 2.51% for the fourth quarter of 2025. At December 31, 2025, certificates of deposit maturing within the next 12 months totaled $781.2 million, or 97% of total certificates of deposit.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

	December 31, 2025	September 30, 2025
Individuals	52 %	52 %
Small businesses	39	39
Public funds	6	6
Broker	3	3
Total	100 %	100 %

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $885.4 million at December 31, 2025 and $894.8 million at September 30, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin (“NIM”) decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% for the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, which was offset with lower funding cost for average interest-bearing liabilities.

Average other interest-earning assets were $163.1 million for the fourth quarter of 2025, up $63.4 million, or 64%, from the third quarter of 2025 primarily due to an increase in the average balance of cash and cash equivalents.

The average rate paid on total interest-bearing deposits was 2.51% for the fourth quarter of 2025, down 6 basis points from the third quarter of 2025, due to the lower funding cost. The average rate paid on certificate of deposits was 3.83% for the fourth quarter of 2025, down 2 basis points from the third quarter of 2025.

Average FHLB advances were $3.0 million for the fourth quarter of 2025, a decrease of $36.4 million, or 92%, from the third quarter of 2025 due to paydowns of FHLB advances.

Loan accretion income from acquired loans totaled $242,000 for the fourth quarter of 2025, down $105,000, or 30%, compared to the third quarter of 2025.

Noninterest Income

Noninterest income for the fourth quarter of 2025 totaled $4.0 million, up $260,000, or 7%, from the third quarter of 2025. The increase was related primarily to increases in other income (up $174,000), gains on sale of loans (up $81,000) and service fees and charges (up $30,000), which were partially offset by decreases in bank card fees (down $22,000) for the fourth quarter of 2025 compared to the third quarter of 2025.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 totaled $23.0 million, up $515,000, or 2%, compared to the third quarter of 2025. The increase was primarily due to increases in other noninterest expense (up $637,000) and compensation and benefits (up $443,000), which were partially offset by decreases in foreclosed assets, net (down $323,000), occupancy expense (down $138,000) and a reversal to the allowance for credit losses on unfunded commitments (down $105,000) for the fourth quarter of 2025 compared to the third quarter of 2025.

Capital and Liquidity

At December 31, 2025, shareholders’ equity totaled $435.1 million, up $12.1 million, or 3%, compared to $423.0 million at September 30, 2025. The increase was primarily due to the Company’s earnings of $11.4 million and a decrease in the accumulated other comprehensive loss on available for sale investment securities during the fourth quarter of 2025, which were partially offset by shareholders’ dividends. The market value of the Company’s available for sale securities at December 31, 2025 increased $3.1 million, or 12%, during the fourth quarter of 2025. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.84% and 15.29%, respectively, at December 31, 2025, compared to 11.80% and 15.24%, respectively, at September 30, 2025.

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.31 per share (unchanged from the previous quarterly cash dividend) payable on February 20, 2026, to shareholders of record as of February 9, 2026.

The Company repurchased 750 shares of its common stock during the fourth quarter of 2025 at an average price per share of $59.97. At December 31, 2025, an additional 390,222 shares remain eligible for purchase under the 2025 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $55.56 and $44.84, respectively, at December 31, 2025.

Conference Call

Executive management will host a conference call to discuss fourth quarter 2025 results on Tuesday, January 27, 2026 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (US Toll Free). The investor presentation can be accessed the day of the presentation on the Home Bancorp, Inc. website at https://home24bank.investorroom.com.

A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company’s website, https://home24bank.investorroom.com.

Non-GAAP Reconciliation

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company’s management uses this non-GAAP financial information in its analysis of the Company’s performance. In this news release, information is included which excludes intangible assets. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation of non-GAAP information included herein to GAAP is presented below.

	Quarter Ended
*(dollars in thousands, except per share data)*	12/31/2025	9/30/2025	6/30/2025	3/31/2025	12/31/2024

Reported net income	$ 11,411	$ 12,357	$ 11,330	$ 10,964	$ 9,673
Add: Core deposit intangible amortization, net tax	203	212	213	231	250
Non-GAAP tangible income	$ 11,614	$ 12,569	$ 11,543	$ 11,195	$ 9,923

Total assets	$ 3,492,626	$ 3,494,074	$ 3,491,455	$ 3,485,453	$ 3,443,668
Less: Intangible assets	83,957	84,214	84,482	84,751	85,044
Non-GAAP tangible assets	$ 3,408,669	$ 3,409,860	$ 3,406,973	$ 3,400,702	$ 3,358,624

Total shareholders’ equity	$ 435,094	$ 423,044	$ 408,818	$ 402,831	$ 396,088
Less: Intangible assets	83,957	84,214	84,482	84,751	85,044
Non-GAAP tangible shareholders’ equity	$ 351,137	$ 338,830	$ 324,336	$ 318,080	$ 311,044

Return on average equity	10.52 %	11.78 %	11.24 %	11.02 %	9.71 %
Add: Average intangible assets	2.79	3.24	3.24	3.23	2.99
Non-GAAP return on average tangible common equity	13.31 %	15.02 %	14.48 %	14.25 %	12.70 %

Common equity ratio	12.46 %	12.11 %	11.71 %	11.56 %	11.50 %
Less: Intangible assets	2.16	2.17	2.19	2.21	2.24
Non-GAAP tangible common equity ratio	10.30 %	9.94 %	9.52 %	9.35 %	9.26 %

Book value per share	$ 55.56	$ 54.05	$ 52.36	$ 50.82	$ 48.95
Less: Intangible assets	10.72	10.76	10.82	10.69	10.51
Non-GAAP tangible book value per share	$ 44.84	$ 43.29	$ 41.54	$ 40.13	$ 38.44

This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors – many of which are beyond our control – could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024, describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit actives, the level of the allowance for credit losses, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
*(dollars in thousands)*	12/31/2025	9/30/2025	6/30/2025	3/31/2025	12/31/2024
Assets
Cash and cash equivalents	$ 141,605	$ 189,324	$ 112,595	$ 110,662	$ 98,548
Investment securities available for sale, at fair value	391,448	383,340	393,462	400,553	402,792
Investment securities held to maturity	1,065	1,065	1,065	1,065	1,065
Mortgage loans held for sale	1,558	1,932	1,305	1,855	832
Loans, net of unearned income	2,744,023	2,705,895	2,764,538	2,747,277	2,718,185
Allowance for loan losses	(33,142)	(32,827)	(33,432)	(33,278)	(32,916)
Total loans, net of allowance for loan losses	2,710,881	2,673,068	2,731,106	2,713,999	2,685,269
Office properties and equipment, net	48,995	45,223	45,216	45,327	42,324
Cash surrender value of bank-owned life insurance	49,557	49,269	48,981	48,699	48,421
Goodwill and core deposit intangibles	83,957	84,214	84,482	84,751	85,044
Accrued interest receivable and other assets	63,560	66,639	73,243	78,542	79,373
Total Assets	$ 3,492,626	$ 3,494,074	$ 3,491,455	$ 3,485,453	$ 3,443,668

Liabilities
Deposits	$ 2,972,806	$ 2,975,503	$ 2,908,234	$ 2,827,207	$ 2,780,696
Other Borrowings	—	5,539	5,539	5,539	5,539
Subordinated debt, net of issuance cost	54,675	54,621	54,567	54,513	54,459
Federal Home Loan Bank advances	3,024	3,059	88,196	163,259	175,546
Accrued interest payable and other liabilities	27,027	32,308	26,101	32,104	31,340
Total Liabilities	3,057,532	3,071,030	3,082,637	3,082,622	3,047,580

Shareholders’ Equity
Common stock	78	78	78	79	81
Additional paid-in capital	168,963	168,016	166,576	167,231	168,138
Common stock acquired by benefit plans	(982)	(1,071)	(1,160)	(1,250)	(1,339)
Retained earnings	284,834	275,912	265,817	261,856	259,190
Accumulated other comprehensive loss	(17,799)	(19,891)	(22,493)	(25,085)	(29,982)
Total Shareholders’ Equity	435,094	423,044	408,818	402,831	396,088
Total Liabilities and Shareholders’ Equity	$ 3,492,626	$ 3,494,074	$ 3,491,455	$ 3,485,453	$ 3,443,668

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended			Twelve Months Ended
*(dollars in thousands, except per share data)*	12/31/2025	9/30/2025	12/31/2024	12/31/2025	12/31/2024
Interest Income
Loans, including fees	$ 44,548	$ 45,607	$ 43,978	$ 179,474	$ 170,255
Investment securities	2,530	2,504	2,703	10,294	10,908
Other investments and deposits	1,642	1,111	1,123	4,004	3,604
Total interest income	48,720	49,222	47,804	193,772	184,767
Interest Expense
Deposits	13,808	13,805	13,606	53,377	52,780
Other borrowings	8	54	1,279	168	6,094
Subordinated debt expense	845	845	848	3,379	3,381
Federal Home Loan Bank advances	11	412	485	3,594	2,250
Total interest expense	14,672	15,116	16,218	60,518	64,505
Net interest income	34,048	34,106	31,586	133,254	120,262
Provision (reversal) for loan losses	480	(229)	873	1,134	2,415
Net interest income after provision for loan losses	33,568	34,335	30,713	132,120	117,847
Noninterest Income
Service fees and charges	1,438	1,408	1,334	5,500	5,118
Bank card fees	1,624	1,646	1,586	6,598	6,525
Gain on sale of loans, net	225	144	62	860	470
Income from bank-owned life insurance	289	288	282	1,136	1,100
(Loss) gain on sale of assets, net	(4)	—	39	3	33
Other income	426	252	326	1,364	1,379
Total noninterest income	3,998	3,738	3,629	15,461	14,625
Noninterest Expense
Compensation and benefits	13,974	13,531	13,314	53,479	51,330
Occupancy	2,406	2,544	2,342	10,024	10,131
Marketing and advertising	560	515	667	1,965	2,000
Data processing and communication	2,548	2,556	2,526	10,374	10,241
Professional fees	401	406	416	1,608	1,922
Forms, printing and supplies	224	175	214	802	794
Franchise and shares tax	434	475	400	1,868	1,863
Regulatory fees	431	459	483	1,908	1,954
Foreclosed assets, net	54	377	125	1,077	341
Amortization of acquisition intangible	257	268	317	1,087	1,328
(Reversal) provision for credit losses on unfunded commitments	(105)	—	240	(1,075)	106
Other expenses	1,862	1,225	1,311	6,446	5,279
Total noninterest expense	23,046	22,531	22,355	89,563	87,289
Income before income tax expense	14,520	15,542	11,987	58,018	45,183
Income tax expense	3,109	3,185	2,314	11,956	8,756
Net income	$ 11,411	$ 12,357	$ 9,673	$ 46,062	$ 36,427

Earnings per share – basic	$ 1.48	$ 1.60	$ 1.22	$ 5.93	$ 4.58
Earnings per share – diluted	$ 1.46	$ 1.59	$ 1.21	$ 5.87	$ 4.55

Cash dividends declared per common share	$ 0.31	$ 0.29	$ 0.26	$ 1.14	$ 1.01

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
	Three Months Ended			Twelve Months Ended
*(dollars in thousands, except per share data)*	12/31/2025	9/30/2025	12/31/2024	12/31/2025	12/31/2024
EARNINGS DATA
Total interest income	$ 48,720	$ 49,222	$ 47,804	$ 193,772	$ 184,767
Total interest expense	14,672	15,116	16,218	60,518	64,505
Net interest income	34,048	34,106	31,586	133,254	120,262
Provision (reversal) for loan losses	480	(229)	873	1,134	2,415
Total noninterest income	3,998	3,738	3,629	15,461	14,625
Total noninterest expense	23,046	22,531	22,355	89,563	87,289
Income tax expense	3,109	3,185	2,314	11,956	8,756
Net income	$ 11,411	$ 12,357	$ 9,673	$ 46,062	$ 36,427

AVERAGE BALANCE SHEET DATA
Total assets	$ 3,501,957	$ 3,467,070	$ 3,439,925	$ 3,473,442	$ 3,386,721
Total interest-earning assets	3,288,830	3,255,291	3,232,896	3,261,733	3,183,952
Total loans	2,716,382	2,743,695	2,686,188	2,742,263	2,652,669
PPP loans	168	235	2,742	509	4,436
Total interest-bearing deposits	2,183,431	2,128,540	2,035,579	2,110,057	1,982,064
Total interest-bearing liabilities	2,241,895	2,228,117	2,250,699	2,252,653	2,222,067
Total deposits	2,977,273	2,918,938	2,789,712	2,883,707	2,729,704
Total shareholders’ equity	430,198	416,239	396,163	413,657	381,196

PER SHARE DATA
Earnings per share – basic	$ 1.48	$ 1.60	$ 1.22	$ 5.93	$ 4.58
Earnings per share – diluted	1.46	1.59	1.21	5.87	4.55
Book value at period end	55.56	54.05	48.95	55.56	48.95
Tangible book value at period end	44.84	43.29	38.44	44.84	38.44
Shares outstanding at period end	7,831,342	7,827,481	8,091,522	7,831,342	8,091,522
Weighted average shares outstanding
Basic	7,726,157	7,712,707	7,944,629	7,773,161	7,955,619
Diluted	7,795,826	7,782,979	7,993,852	7,845,853	8,004,672

SELECTED RATIOS ⁽¹⁾
Return on average assets	1.29 %	1.41 %	1.12 %	1.33 %	1.08 %
Return on average equity	10.52	11.78	9.71	11.14	9.56
Common equity ratio	12.46	12.11	11.50	12.46	11.50
Efficiency ratio ⁽²⁾	60.57	59.54	63.48	60.22	64.71
Average equity to average assets	12.28	12.01	11.52	11.91	11.26
Tier 1 leverage capital ratio ⁽³⁾	11.84	11.80	11.38	11.84	11.38
Total risk-based capital ratio ⁽³⁾	15.29	15.24	14.51	15.29	14.51
Net interest margin ⁽⁴⁾	4.06	4.10	3.82	4.03	3.71

SELECTED NON-GAAP RATIOS ⁽¹⁾
Tangible common equity ratio ⁽⁵⁾	10.30 %	9.94 %	9.26 %	10.30 %	9.26 %
Return on average tangible common equity ⁽⁶⁾	13.31	15.02	12.70	14.25	12.68

(1)	With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.
(2)	The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.
(3)	Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.
(4)	Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.
(5)	Tangible common equity ratio is common shareholders’ equity less intangible assets divided by total assets less intangible assets. See “Non-GAAP Reconciliation” for additional information.
(6)	Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders’ equity less average intangible assets. See “Non-GAAP Reconciliation” for additional information.

HOME BANCORP, INC. AND SUBSIDIARY
Consolidated Net Interest Margin
(Unaudited)
	Three Months Ended
	12/31/2025			9/30/2025			12/31/2024
*(dollars in thousands)*	Average Balance	Interest	Average Yield/ Rate	Average Balance	Interest	Average Yield/ Rate	Average Balance	Interest	Average Yield/ Rate
Interest-earning assets:
Loans receivable	$ 2,716,382	$ 44,548	6.44 %	$ 2,743,695	$ 45,607	6.53 %	$ 2,686,188	$ 43,978	6.43 %
Investment securities (TE)⁽¹⁾	409,391	2,530	2.49	411,889	2,504	2.45	449,216	2,703	2.42
Other interest-earning assets	163,057	1,642	4.00	99,707	1,111	4.42	97,492	1,123	4.58
Total interest-earning assets	$ 3,288,830	$ 48,720	5.83 %	$ 3,255,291	$ 49,222	5.95 %	$ 3,232,896	$ 47,804	5.82 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market	$ 1,359,342	$ 5,860	1.71 %	$ 1,301,888	$ 5,783	1.76 %	$ 1,311,815	$ 5,721	1.73 %
Certificates of deposit	824,089	7,948	3.83	826,652	8,022	3.85	723,764	7,885	4.33
Total interest-bearing deposits	2,183,431	13,808	2.51	2,128,540	13,805	2.57	2,035,579	13,606	2.66
Other borrowings	783	8	4.19	5,539	54	3.80	107,767	1,279	4.72
Subordinated debt	54,647	845	6.18	54,593	845	6.19	54,427	848	6.23
FHLB advances	3,034	11	1.52	39,445	412	4.12	52,926	485	3.63
Total interest-bearing liabilities	$ 2,241,895	$ 14,672	2.60 %	$ 2,228,117	$ 15,116	2.69 %	$ 2,250,699	$ 16,218	2.87 %
Noninterest-bearing deposits	$ 793,842			$ 790,398			$ 754,133
Net interest spread (TE)⁽¹⁾			3.23 %			3.26 %			2.95 %
Net interest margin (TE)⁽¹⁾			4.06 %			4.10 %			3.82 %


(1)	Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%

HOME BANCORP, INC. AND SUBSIDIARY
Consolidated Net Interest Margin
(Unaudited)
	Twelve Months Ended
	12/31/2025			12/31/2024
*(dollars in thousands)*	Average Balance	Interest	Average Yield/ Rate	Average Balance	Interest	Average Yield/ Rate
Interest-earning assets:
Loans receivable	$ 2,742,263	$ 179,474	6.47 %	$ 2,652,669	$ 170,255	6.33 %
Investment securities (TE)⁽¹⁾	421,750	10,294	2.46	459,785	10,908	2.39
Other interest-earning assets	97,720	4,004	4.10	71,498	3,604	5.04
Total interest-earning assets	$ 3,261,733	$ 193,772	5.88 %	$ 3,183,952	$ 184,767	5.74 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market	$ 1,316,199	$ 22,575	1.72 %	$ 1,277,083	$ 21,200	1.66 %
Certificates of deposit	793,858	30,802	3.88	704,981	31,580	4.48
Total interest-bearing deposits	2,110,057	53,377	2.53	1,982,064	52,780	2.66
Other borrowings	4,348	168	3.86	128,699	6,094	4.74
Subordinated debt	54,567	3,379	6.19	54,348	3,381	6.22
FHLB advances	83,681	3,594	4.24	56,956	2,250	3.92
Total interest-bearing liabilities	$ 2,252,653	$ 60,518	2.68 %	$ 2,222,067	$ 64,505	2.90 %
Noninterest-bearing deposits	$ 773,650			$ 747,640
Net interest spread (TE)⁽¹⁾			3.20 %			2.84 %
Net interest margin (TE)⁽¹⁾			4.03 %			3.71 %


(1)	Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
	Three Months Ended
*(dollars in thousands)*	12/31/2025	9/30/2025	6/30/2025	3/31/2025	12/31/2024
CREDIT QUALITY ⁽¹⁾
Nonaccrual loans:
One- to four-family first mortgage	$ 6,531	$ 6,402	$ 6,272	$ 6,368	$ 7,039
Home equity loans and lines	531	1,008	1,033	372	279
Commercial real estate	9,011	10,016	7,669	4,349	3,304
Construction and land	15,367	9,847	6,103	5,584	1,622
Multi-family residential	1,281	973	916	930	—
Commercial and industrial	1,344	1,161	1,312	1,206	1,311
Consumer	46	60	35	161	27
Total nonaccrual loans	$ 34,111	$ 29,467	$ 23,340	$ 18,970	$ 13,582
Accruing loans past due 90 days and over	65	55	12	77	16
Total nonperforming loans	34,176	29,522	23,352	19,047	13,598
Foreclosed assets and ORE	1,929	1,384	2,077	2,424	2,010
Total nonperforming assets	$ 36,105	$ 30,906	$ 25,429	$ 21,471	$ 15,608

Nonperforming assets to total assets	1.03 %	0.88 %	0.73 %	0.62 %	0.45 %
Nonperforming loans to total assets	0.98	0.84	0.67	0.55	0.39
Nonperforming loans to total loans	1.25	1.09	0.84	0.69	0.50

ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses:
Beginning balance	$ 32,827	$ 33,432	$ 33,278	$ 32,916	$ 32,278
(Reversal) provision for loan losses	480	(229)	489	394	873
Charge-offs	(189)	(488)	(460)	(226)	(255)
Recoveries	24	112	125	194	20
Net charge-offs	(165)	(376)	(335)	(32)	(235)
Ending balance	$ 33,142	$ 32,827	$ 33,432	$ 33,278	$ 32,916

Reserve for unfunded lending commitments⁽²⁾
Beginning balance	$ 1,730	$ 1,730	$ 2,700	$ 2,700	$ 2,460
(Reversal) provision for losses on unfunded lending commitments	(105)	—	(970)	—	240
Ending balance	$ 1,625	$ 1,730	$ 1,730	$ 2,700	$ 2,700
Total allowance for credit losses	34,767	34,557	35,162	35,978	35,616

Total loans	$ 2,744,023	$ 2,705,895	$ 2,764,538	$ 2,747,277	$ 2,718,185
Total unfunded commitments	509,331	509,709	492,306	508,864	516,785

Allowance for loan losses to nonperforming assets	91.79 %	106.22 %	131.47 %	154.99 %	210.89 %
Allowance for loan losses to nonperforming loans	96.97	111.20	143.17	174.72	242.07
Allowance for loan losses to total loans	1.21	1.21	1.21	1.21	1.21
Allowance for credit losses to total loans	1.27	1.28	1.27	1.31	1.31

Year-to-date loan charge-offs	$ (1,363)	$ (1,174)	$ (686)	$ (226)	$ (1,285)
Year-to-date loan recoveries	455	431	319	194	249
Year-to-date net loan charge-offs	$ (908)	$ (743)	$ (367)	$ (32)	$ (1,036)
Annualized YTD net loan charge-offs to average loans	(0.03) %	(0.04) %	(0.03) %	— %	(0.04) %

(1)	It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.
(2)	The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

View original content to download multimedia:https://www.prnewswire.com/news-releases/home-bancorp-announces-2025-fourth-quarter-results-and-declares-a-quarterly-dividend-302670401.html

SOURCE Home Bancorp, Inc.

FirstSun Capital Bancorp Reports Fourth Quarter and Full Year 2025 Results

Business Wire on February 5, 2026

FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $24.8 million for the fourth quarter of 2025 compared to net income of $16.4 million for the fourth quarter of 2024. Earnings per diluted share were $0.88 for the fourth quarter of 2025 compared to $0.58 for the fourth quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $26.9 million or $0.95 per diluted share for the fourth quarter of 2025 compared to $24.3 million or $0.86 per diluted share for the fourth quarter of 2024.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “We are very pleased with our strong operating results in the fourth quarter. Among the highlights were our growth in net interest margin to a strong 4.18%, average loan growth of 8.5%, annualized and revenue growth driving our earnings growth. Our strategic focus on our C&I, consumer and service fee businesses has enabled us to continue to responsibly grow our franchise and deliver strong earnings once again this year. While we acknowledge the potential influence of macroeconomic and geopolitical risks, we look forward to the franchise opportunities ahead in 2026 and believe our business model and well diversified business mix will position us for continued success.

“We are also encouraged with the progress we are making with the First Foundation team on operational integration planning and balance sheet optimization work. Finally, I want to thank all of our hard-working employees for their continued focus on creating a best-in-class bank while delivering value added solutions to all our customers throughout our footprint.”

Fourth Quarter 2025 Results

Net income totaled $24.8 million, or $0.88 per diluted share, for the fourth quarter of 2025, compared to $23.2 million, or $0.82 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $26.9 million, or $0.95 per diluted share, for the fourth quarter of 2025, compared to $23.4 million, or $0.83 per diluted share, for the prior quarter.

The return on average total assets was 1.17% for the fourth quarter of 2025, compared to 1.09% for the prior quarter, and the return on average stockholders’ equity was 8.58% for the fourth quarter of 2025, compared to 8.22% for the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.27% and 9.31% respectively for the fourth quarter of 2025 compared to 1.10% and 8.31% respectively for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $83.5 million for the fourth quarter of 2025, an increase of $2.5 million compared to the prior quarter. Our net interest margin increased 11 basis points to 4.18% compared to the prior quarter.

Average loans, including loans held-for-sale, increased by $158.2 million in the fourth quarter of 2025, compared to the prior quarter. Loan yield decreased by 12 basis points to 6.37% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets decreased by $131.2 million in the fourth quarter of 2025, compared to the prior quarter. Interest-bearing cash and other assets yield decreased by 57 basis points to 3.68% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment.

Average interest-bearing deposits decreased $60.6 million in the fourth quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits decreased by 21 basis points to 2.60% in the fourth quarter of 2025, compared to the prior quarter, primarily due to rate decreases for certificates of deposit and money market deposits amidst the declining interest rate environment and a decrease in certificates of deposit balances. Average other long-term borrowings decreased $39.5 million in the fourth quarter of 2025, compared to the prior quarter. Cost of other long-term borrowings decreased 259 basis points to 5.82% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the redemption of $40.0 million of subordinated notes.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $6.2 million for the fourth quarter of 2025 primarily due to impacts from net portfolio downgrades.

Net charge-offs for the fourth quarter of 2025 were $5.0 million resulting in an annualized ratio of net charge-offs to average loans of 0.30%, compared to net charge-offs of $9.1 million, or an annualized ratio of net-charge offs to average loans of 0.55% for the prior quarter. Net charge-offs for the fourth quarter of 2025 were elevated primarily due to a write-down related to a specific customer relationship in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, an increase of one basis point from the prior quarter. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.98% at September 30, 2025.

Noninterest Income

Noninterest income totaled $26.7 million for the fourth quarter of 2025, an increase of $0.4 million from the prior quarter. Income from mortgage banking services decreased $0.5 million for the fourth quarter of 2025, from the prior quarter, primarily due to a decrease in net MSR capitalization resulting from higher balance runoff in the servicing portfolio. Other noninterest income increased $0.8 million for the fourth quarter of 2025, from the prior quarter, primarily due to an increase in loan syndication fees and swap fee income, partially offset by a decrease in the fair value of investments related to our deferred compensation plan.

Noninterest income as a percentage of total revenue¹ was 24.3%, a decrease of 0.2% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $72.0 million for the fourth quarter of 2025, an increase of $3.1 million from the prior quarter. Salary and employee benefits decreased $1.3 million in the fourth quarter of 2025 from the prior quarter, primarily due to a decrease in the fair value of investments related to our deferred compensation plan and a reduction in medical insurance costs. Other noninterest expenses increased $2.4 million in the fourth quarter of 2025 from the prior quarter, primarily due to the acceleration of remaining deferred expenses related to the $40.0 million subordinated notes redemption and maintenance expenses incurred related to OREO properties. Merger related expenses increased $2.0 million in the fourth quarter of 2025 from the prior quarter.

The efficiency ratio for the fourth quarter of 2025 was 65.37% compared to 64.22% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the fourth quarter of 2025 was 63.36% compared to 64.00% for the prior quarter.

Tax Rate

The effective tax rate was 22.4% for the fourth quarter of 2025, compared to 18.1% for the prior quarter.

Loans

Loans were $6.7 billion at December 31, 2025 and September 30, 2025, decreasing $8.4 million in the fourth quarter of 2025, or 0.5% on an annualized basis.

Deposits

Deposits were $7.1 billion at December 31, 2025 and September 30, 2025, an increase of $1.9 million in the fourth quarter of 2025, or 0.1% on an annualized basis, primarily due to an increase of $100.0 million in money market accounts, partially offset by decreases of $61.8 million in certificates of deposit and $23.1 million in noninterest-bearing deposit accounts. Average deposits were $7.1 billion for fourth quarter of 2025 and for the prior quarter, decreasing $4.8 million or 0.3% on an annualized basis.

Noninterest-bearing deposit accounts represented 23.2% of total deposits at December 31, 2025 and the loan to deposit ratio was 93.9% at December 31, 2025.

The ratio of total uninsured deposits to total deposits was estimated to be 36.6% at December 31, 2025. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 29.0% at December 31, 2025.²

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $0.88 from September 30, 2025. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $0.91 from September 30, 2025.

Full Year 2025 Results

Full Year Highlights:

Net income of $97.9 million, $3.47 per diluted share (adjusted, $100.5 million, $3.56 per diluted share, see the “Non-GAAP Financial Measures and Reconciliations” below)
Net interest margin of 4.10%
Return on average total assets of 1.18% (adjusted, 1.21%, see the “Non-GAAP Financial Measures and Reconciliations” below)
Return on average stockholders’ equity of 8.88% (adjusted, 9.11%, see the “Non-GAAP Financial Measures and Reconciliations” below)
Loan growth of 4.7%
Average deposit growth of 6.6%
24.3% noninterest income to total revenue¹

Net income totaled $97.9 million, or $3.47 per diluted share, in 2025, compared to $75.6 million, or $2.69 per diluted share, in 2024. Adjusted net income, a non-GAAP financial measure, was $100.5 million, or $3.56 per diluted share, in 2025 compared to $87.7 million, or $3.13 per diluted share, in 2024.

The return on average total assets was 1.18% in 2025, compared to 0.96% in 2024, and the return on average stockholders’ equity was 8.88% in 2025, compared to 7.56% in 2024. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.21% and 9.11% respectively in 2025 compared to 1.12% and 8.77% respectively in 2024.

Net Interest Income and Net Interest Margin

Net interest income totaled $317.4 million in 2025, an increase of $20.5 million compared to 2024. Our net interest margin increased four basis points to 4.10% compared to 2024.

Average loans, including loans held-for-sale, increased by $224.1 million in 2025, compared to 2024. Loan yield decreased by 17 basis points to 6.41% in 2025, compared to 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets increased by $218.6 million in 2025, compared to 2024. Interest-bearing cash and other assets yield decreased by 88 basis points to 4.14% in 2025, compared to 2024, primarily due to the declining interest rate environment.

Average deposits increased $357.6 million in 2025, compared to 2024. Total cost of interest-bearing deposits decreased by 30 basis points to 2.73% in 2025, compared to 2024, primarily due to a decrease in balances and rates for certificates of deposit amidst the declining interest rate environment, partially offset by an increase in promotional rate money market deposit balances. Average FHLB borrowings decreased $117.0 million in 2025, compared to 2024. The cost of FHLB borrowings decreased by 87 basis points to 4.61% in 2025, compared to 2024.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $24.6 million in 2025, a decrease of $3.0 million compared to 2024. The provision for credit losses in 2025 was primarily due to a combination of deterioration of two customer relationships in our commercial and industrial (C&I) portfolio, impacts from net portfolio downgrades, and impacts from growth in loan portfolio balances.

Net charge-offs in 2025 were $28.3 million, or a ratio of net charge-offs to average loans of 0.43%, compared to net charge-offs of $20.4 million, or a ratio of net charge-offs to average loans of 0.32%, in 2024. Net charge-offs in 2025 were elevated primarily due to write-downs of two customer relationships in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, compared to 1.38% at December 31, 2024. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.92% at December 31, 2024.

Noninterest Income

Noninterest income totaled $101.9 million during 2025, an increase of $12.1 million from 2024. Income from mortgage banking services increased $8.1 million in 2025 compared to 2024, primarily due to an increase in gain on sales driven by higher origination volume and margins and an increase in mortgage servicing revenue driven by higher servicing portfolio balances. Treasury management service fees increased $2.6 million in 2025 compared to 2024, primarily due to growth in services provided to our business customers. Other noninterest income increased $2.8 million in 2025 compared to 2024, primarily due to an increase in loan syndication fees and swap fee income.

Noninterest income as a percentage of total revenue¹ totaled 24.3% in 2025, compared to 23.2% in 2024.

Noninterest Expense

Noninterest expense totaled $271.8 million in 2025, an increase of $7.7 million from 2024. Salaries and employee benefits increased $16.8 million in 2025 compared to 2024, primarily due to an increase in headcount of C&I bankers and support personnel, higher levels of variable compensation, including those associated with an increase in mortgage loan originations, and an increase in medical insurance costs. Merger related expenses decreased $10.4 million in 2025 compared to 2024.

The efficiency ratio for 2025 was 64.82% compared to 68.28% in 2024. The adjusted efficiency ratio, a non-GAAP financial measure, in 2025 was 64.17% compared to 64.13% in 2024.

Tax Rate

The effective tax rate was 20.3% in 2025, compared to 20.5% in 2024.

Loans

Loans were $6.7 billion at December 31, 2025 compared to $6.4 billion at December 31, 2024, an increase of $0.3 billion or 4.7%, primarily due to growth of $0.3 billion in C&I loans.

Deposits

Deposits were $7.1 billion at December 31, 2025 and $6.7 billion at December 31, 2024, an increase of $0.4 billion or 6.5% in 2025, primarily due to increases of $0.1 billion in noninterest-bearing deposit accounts, $0.1 billion in interest-bearing demand and NOW accounts, and $0.5 billion in money market accounts, partially offset by a decrease of $0.3 billion in certificates of deposit. Average deposits were $6.9 billion for the year ending December 31, 2025, compared to $6.5 billion for the prior year, an increase of $430.4 million or 6.6%.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $3.78 from December 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $3.89 from December 31, 2024.

Non-GAAP Financial Measures

This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release:

Tangible stockholders’ equity to tangible assets;
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax;
Tangible book value per share;
Adjusted net income;
Adjusted diluted earnings per share;
Adjusted return on average total assets;
Adjusted return on average stockholders’ equity;
Return on average tangible stockholders’ equity;
Adjusted return on average tangible stockholders’ equity;
Adjusted total noninterest expense;
Adjusted efficiency ratio; and
Fully tax equivalent (“FTE”) net interest income and net interest margin.

The tables within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release to the most comparable GAAP equivalent.

____________________
¹		Total revenue is net interest income plus noninterest income.
²		Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp (NASDAQ: FSUN), headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank and First National 1870. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with depository branches in seven states and mortgage capabilities in 44 states. FirstSun had total consolidated assets of $8.5 billion as of December 31, 2025.

First National 1870 is a division of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com or SunflowerBank.com

Investor Earnings Conference Call

FirstSun will host a conference call on Tuesday, January 27, 2026 at 11:00 a.m. (EST) to discuss its fourth quarter and full year 2025 financial results.

Participants may join by phone by dialing (833) 470-1428 for toll-free within the US and (404) 975-4839 for all other locations. The conference Access Code is 586052. The numbers for international participants are available here: https://www.netroadshow.com/events/global-numbers?confId=48643.

An audio replay of the live call, and the accompanying presentation slides, is expected to be available following the live event on the Events & Presentations page of FirstSun’s website at https://ir.firstsuncb.com/overview/default.aspx.

Day-Count Convention

Annualized ratios are presented utilizing the Actual/Actual day-count convention. Annualized ratios have been recalculated to conform to the current presentation for periods prior to March 31, 2025.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our future franchise opportunities and continued success in 2026. These statements reflect management’s current expectations and are not guarantees of future performance. Words such as “focus,” “may,” “will,” “believe,” “anticipate,” “expect,” “intend,” “opportunity,” “continue,” “should,” and “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: changes in interest rates (including anticipated Federal Reserve rate cuts that might not occur) and their related impact on macroeconomic conditions, customer behavior, our funding costs and our loan and securities portfolios; the quality or composition of our loan or investment portfolios and changes therein; failure to maintain our mortgage production flow to secondary markets; the sufficiency of liquidity and changes in our capital position; the inability of our infrastructure initiatives to reduce expenses; increased deposit volatility; potential regulatory developments; U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; the possibility that our previously announced merger with First Foundation Inc. (“First Foundation”) does not close when expected or at all because required regulatory, stockholder or other approvals and conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the proposed First Foundation merger, including the re-positioning strategy, will not be completed as planned, or achieve the anticipated benefits; the diversion of management’s attention from ongoing business operations and opportunities due to the proposed First Foundation merger; the occurrence of any event, change or other circumstances that could give rise to the termination of the First Foundation merger agreement; the possibility that the anticipated benefits of the proposed First Foundation merger, including anticipated cost savings and synergies, are not realized when expected or at all, including because of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy, competitive factors in the areas where we do business, or because of other unexpected factors or events; and other general competitive, economic, business, market and political conditions.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. Additional information concerning additional factors that could materially affect the forward-looking statements in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other documents subsequently filed by the Company with the SEC, including its Quarterly Reports on Form 10-Q. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

Additional Information About the Merger and Where to Find It

This communication contains statements regarding the proposed transaction between FirstSun and First Foundation. In connection with the proposed transaction, FirstSun filed a registration statement on Form S-4 on December 11, 2025, as amended on January 14, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000014/e26019_fsun-s4a.htm), to register FirstSun’s shares that will be issued to First Foundation’s stockholders in connection with the merger. The registration statement includes a joint proxy statement of FirstSun and First Foundation and a prospectus of FirstSun, as well as other relevant documents concerning the proposed transaction. The Registration Statement was declared effective by the SEC on January 15, 2026 and FirstSun filed a definitive joint proxy statement/prospectus on January 15, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm) and it was first mailed to FirstSun and First Foundation stockholders on January 16, 2026.

INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION REGARDING FIRSTSUN, FIRST FOUNDATION, THE TRANSACTION AND RELATED MATTERS.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

A free copy of the joint proxy statement/prospectus, as well as other documents filed by FirstSun or First Foundation may be obtained at the SEC’s Internet site at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by (i) FirstSun on its website at https://ir.firstsuncb.com/overview/default.aspx under the Financials tab and then under the SEC Filings option, and (ii) First Foundation on its website at https://investor.ff-inc.com/investor-home/default.aspx under the Financials tab and then under the SEC Filings option.

Participants in the Solicitation

FirstSun, First Foundation and certain of their directors and executive officers may be deemed participants in the solicitation of proxies from stockholders of FirstSun or First Foundation in connection with the proposed transaction. Information regarding the directors and executive officers of FirstSun and First Foundation and other persons who may be deemed participants in the solicitation of the stockholders of FirstSun or First Foundation in connection with the proposed transaction is included in the joint proxy statement/prospectus, which was filed by FirstSun with the SEC on January 15, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm). Information about the directors and officers of FirstSun and their ownership of FirstSun common stock can be found in FirstSun’s definitive proxy statement in connection with its 2025 annual meeting of stockholders, including under the headings “Director Experience”, “Biographical Information for Executive Officers”, “Certain Relationships and Related Party Transactions”, “Security Ownership of Certain Beneficial Owners and Management”, “Executive Compensation”, and “Compensation of Directors for Fiscal Year 2024”, as filed with the SEC on March 21, 2025 and available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001709442/000170944225000020/fcb-20250321.htm, and other documents subsequently filed by FirstSun with the SEC, including on Statements of Change in Ownership on Form 4 filed with the SEC, available at https://www.sec.gov/edgar/browse/?CIK=1709442&owner=exclude. Information about the directors and officers of First Foundation and their ownership of First Foundation common stock can be found in First Foundation’s definitive proxy statement in connection with its 2025 annual meeting of stockholders, including under the headings “Security Ownership of Certain Beneficial Owners and Management”, “Election of Directors (Proposal No. 1)”, “Advisory Vote on the Compensation of the Company’s Named Executive Officers (Proposal No. 4)”, “Compensation Committee Report”, and “Certain Relationships and Related Party Transactions” as filed with the SEC on April 17, 2025 and available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001413837/000110465925036041/tm252563-3_def14a.htm, and other documents subsequently filed by First Foundation with the SEC, including on Statements of Change in Ownership on Form 4 filed with the SEC, available at https://www.sec.gov/edgar/browse/?CIK=1413837&owner=exclude. Additional information regarding the interests of participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are included in the joint proxy statement/prospectus filed by FirstSun with the SEC on January 15, 2026 (which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm). You may obtain free copies of these documents through the website maintained by the SEC at https://www.sec.gov.

Summary Data:

	As of and for the three months ended
($ in thousands, except per share amounts)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Net interest income	$	83,461		$	80,953		$	78,499		$	74,478		$	77,047
Provision for credit losses		6,200			10,100			4,500			3,800			4,850
Noninterest income		26,744			26,333			27,073			21,729			21,635
Noninterest expense		72,041			68,901			68,110			62,722			73,673
Income before income taxes		31,964			28,285			32,962			29,685			20,159
Provision for income taxes		7,157			5,111			6,576			6,116			3,809
Net income		24,807			23,174			26,386			23,569			16,350
Adjusted net income¹		26,923			23,412			26,601			23,569			24,316
Weighted average common shares outstanding, basic		27,839,044			27,801,255			27,783,710			27,721,760			27,668,470
Weighted average common shares outstanding, diluted		28,262,530			28,291,778			28,232,319			28,293,912			28,290,474
Diluted earnings per share	$	0.88		$	0.82		$	0.93		$	0.83		$	0.58
Adjusted diluted earnings per share¹	$	0.95		$	0.83		$	0.94		$	0.83		$	0.86
Return on average total assets		1.17	%		1.09	%		1.28	%		1.20	%		0.81	%
Adjusted return on average total assets¹		1.27	%		1.10	%		1.29	%		1.20	%		1.20	%
Return on average stockholders’ equity		8.58	%		8.22	%		9.74	%		9.03	%		6.22	%
Adjusted return on average stockholders’ equity¹		9.31	%		8.31	%		9.82	%		9.03	%		9.24	%
Return on average tangible stockholders’ equity¹		9.58	%		9.20	%		10.91	%		10.18	%		7.36	%
Adjusted return on average tangible stockholders’ equity¹		10.38	%		9.30	%		11.00	%		10.18	%		10.72	%
Net interest margin		4.18	%		4.07	%		4.07	%		4.07	%		4.09	%
Net interest margin (FTE basis)¹		4.23	%		4.12	%		4.13	%		4.13	%		4.15	%
Efficiency ratio		65.37	%		64.22	%		64.52	%		65.19	%		74.66	%
Adjusted efficiency ratio¹		63.36	%		64.00	%		64.25	%		65.19	%		63.63	%
Noninterest income to total revenue²		24.3	%		24.5	%		25.6	%		22.6	%		21.9	%
Total assets	$	8,485,162		$	8,495,437		$	8,435,861		$	8,216,458		$	8,097,387
Loans held-for-sale		100,539			85,250			90,781			65,603			61,825
Loans held-for-investment		6,673,180			6,681,629			6,507,066			6,484,008			6,376,357
Total deposits		7,107,356			7,105,415			7,100,164			6,874,239			6,672,260
Total stockholders’ equity		1,153,356			1,127,513			1,095,402			1,068,295			1,041,366
Loan to deposit ratio		93.9	%		94.0	%		91.6	%		94.3	%		95.6	%
Period end common shares outstanding		27,887,337			27,854,764			27,834,525			27,753,918			27,709,679
Book value per share	$	41.36		$	40.48		$	39.35		$	38.49		$	37.58
Tangible book value per share¹	$	37.83		$	36.92		$	35.77		$	34.88		$	33.94

¹		Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
²		Total revenue is net interest income plus noninterest income.

Summary Data (cont’d):

	As of and for the year ended
($ in thousands, except per share amounts)	December 31, 2025			December 31, 2024
Net interest income	$	317,391		$	296,910
Provision for credit losses		24,600			27,550
Noninterest income		101,879			89,792
Noninterest expense		271,774			264,040
Income before income taxes		122,896			95,112
Provision for income taxes		24,960			19,484
Net income		97,936			75,628
Adjusted net income¹		100,505			87,744
Weighted average common shares outstanding, basic		27,786,887			27,433,865
Weighted average common shares outstanding, diluted		28,249,796			28,067,273
Diluted earnings per share	$	3.47		$	2.69
Adjusted diluted earnings per share¹	$	3.56		$	3.13
Return on average total assets		1.18	%		0.96	%
Adjusted return on average total assets¹		1.21	%		1.12	%
Return on average stockholders’ equity		8.88	%		7.56	%
Adjusted return on average stockholders’ equity¹		9.11	%		8.77	%
Return on average tangible stockholders’ equity¹		9.95	%		8.74	%
Adjusted return on average tangible stockholders’ equity¹		10.21	%		10.09	%
Net interest margin		4.10	%		4.06	%
Net interest margin (FTE basis)¹		4.16	%		4.12	%
Efficiency ratio		64.82	%		68.28	%
Adjusted efficiency ratio¹		64.17	%		64.13	%
Noninterest income to total revenue²		24.3	%		23.2	%
Total assets	$	8,485,162		$	8,097,387
Loans held-for-sale		100,539			61,825
Loans held-for-investment		6,673,180			6,376,357
Total deposits		7,107,356			6,672,260
Total stockholders’ equity		1,153,356			1,041,366
Loan to deposit ratio		93.9	%		95.6	%
Period end common shares outstanding		27,887,337			27,709,679
Book value per share	$	41.36		$	37.58
Tangible book value per share¹	$	37.83		$	33.94

¹		Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
²		Total revenue is net interest income plus noninterest income.

Condensed Consolidated Statements of Income (Unaudited):

	For the three months ended				For the year ended
($ in thousands, except per share amounts)	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Total interest income	$	119,273	$	116,039	$	467,769	$	459,540
Total interest expense		35,812		38,992		150,378		162,630
Net interest income		83,461		77,047		317,391		296,910
Provision for credit losses		6,200		4,850		24,600		27,550
Net interest income after credit loss expense		77,261		72,197		292,791		269,360
Noninterest income:
Service charges on deposit accounts		2,116		2,219		8,321		9,495
Treasury management service fees		4,544		3,982		17,473		14,829
Credit and debit card fees		2,744		2,706		10,729		11,153
Trust and investment advisory fees		1,515		1,436		5,945		5,787
Income from mortgage banking services, net		12,102		9,631		47,072		39,014
Other noninterest income		3,723		1,661		12,339		9,514
Total noninterest income		26,744		21,635		101,879		89,792
Noninterest expense:
Salary and employee benefits		43,520		38,498		171,824		154,985
Occupancy and equipment		9,576		9,865		38,244		36,282
Amortization and impairment of intangible assets		628		1,431		2,412		3,549
Merger related expenses		2,217		8,010		2,743		13,178
Other noninterest expenses		16,100		15,869		56,551		56,046
Total noninterest expense		72,041		73,673		271,774		264,040
Income before income taxes		31,964		20,159		122,896		95,112
Provision for income taxes		7,157		3,809		24,960		19,484
Net income	$	24,807	$	16,350	$	97,936	$	75,628
Earnings per share – basic	$	0.89	$	0.59	$	3.52	$	2.76
Earnings per share – diluted	$	0.88	$	0.58	$	3.47	$	2.69

Condensed Consolidated Statements of Income (Unaudited) (cont’d):

	For the three months ended
($ in thousands, except per share amounts)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Total interest income	$	119,273	$	121,128	$	116,921	$	110,447	$	116,039
Total interest expense		35,812		40,175		38,422		35,969		38,992
Net interest income		83,461		80,953		78,499		74,478		77,047
Provision for credit losses		6,200		10,100		4,500		3,800		4,850
Net interest income after credit loss expense		77,261		70,853		73,999		70,678		72,197
Noninterest income:
Service charges on deposit accounts		2,116		2,162		2,016		2,027		2,219
Treasury management service fees		4,544		4,402		4,333		4,194		3,982
Credit and debit card fees		2,744		2,671		2,728		2,586		2,706
Trust and investment advisory fees		1,515		1,536		1,473		1,421		1,436
Income from mortgage banking services, net		12,102		12,641		13,274		9,055		9,631
Other noninterest income		3,723		2,921		3,249		2,446		1,661
Total noninterest income		26,744		26,333		27,073		21,729		21,635
Noninterest expense:
Salary and employee benefits		43,520		44,822		43,921		39,561		38,498
Occupancy and equipment		9,576		9,591		9,541		9,536		9,865
Amortization and impairment of intangible assets		628		578		578		628		1,431
Merger related expenses		2,217		241		285		—		8,010
Other noninterest expenses		16,100		13,669		13,785		12,997		15,869
Total noninterest expense		72,041		68,901		68,110		62,722		73,673
Income before income taxes		31,964		28,285		32,962		29,685		20,159
Provision for income taxes		7,157		5,111		6,576		6,116		3,809
Net income	$	24,807	$	23,174	$	26,386	$	23,569	$	16,350
Earnings per share – basic	$	0.89	$	0.83	$	0.95	$	0.85	$	0.59
Earnings per share – diluted	$	0.88	$	0.82	$	0.93	$	0.83	$	0.58

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Assets
Cash and cash equivalents	$	652,592		$	659,899		$	785,115		$	621,377		$	615,917
Securities available-for-sale, at fair value		468,970			476,114			473,468			480,615			469,076
Securities held-to-maturity		33,839			34,247			34,581			34,914			35,242
Loans held-for-sale, at fair value		100,539			85,250			90,781			65,603			61,825
Loans		6,673,180			6,681,629			6,507,066			6,484,008			6,376,357
Allowance for credit losses		(85,016	)		(84,040	)		(82,993	)		(91,790	)		(88,221	)
Loans, net		6,588,164			6,597,589			6,424,073			6,392,218			6,288,136
Mortgage servicing rights, at fair value		86,651			85,695			84,736			82,927			84,258
Premises and equipment, net		81,523			81,886			82,248			82,333			82,483
Other real estate owned and foreclosed assets, net		11,514			13,418			13,052			4,914			5,138
Goodwill		93,483			93,483			93,483			93,483			93,483
Core deposits and other intangible assets, net		4,983			5,650			6,228			6,806			7,434
Other assets		362,904			362,206			348,096			351,268			354,395
Total assets	$	8,485,162		$	8,495,437		$	8,435,861		$	8,216,458		$	8,097,387
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing accounts	$	1,651,373		$	1,674,497		$	1,706,678		$	1,574,736		$	1,541,158
Interest-bearing accounts:
Demand and NOW		848,661			854,176			797,755			748,589			731,404
Savings		378,631			386,235			397,120			405,621			402,338
Money market		2,937,017			2,837,019			2,769,346			2,569,153			2,431,785
Certificates of deposit		1,291,674			1,353,488			1,429,265			1,576,140			1,565,575
Total deposits		7,107,356			7,105,415			7,100,164			6,874,239			6,672,260
Securities sold under agreements to repurchase		11,160			9,824			11,173			8,515			14,699
Federal Home Loan Bank advances		—			—			—			35,000			135,000
Subordinated debt, net		36,680			76,163			76,066			75,969			75,841
Other liabilities		176,610			176,522			153,056			154,440			158,221
Total liabilities		7,331,806			7,367,924			7,340,459			7,148,163			7,056,021
Stockholders’ equity:
Preferred stock		—			—			—			—			—
Common stock		3			3			3			3			3
Additional paid-in capital		549,617			548,952			547,950			547,484			547,325
Retained earnings		631,086			606,279			583,105			556,719			533,150
Accumulated other comprehensive loss, net		(27,350	)		(27,721	)		(35,656	)		(35,911	)		(39,112	)
Total stockholders’ equity		1,153,356			1,127,513			1,095,402			1,068,295			1,041,366
Total liabilities and stockholders’ equity	$	8,485,162		$	8,495,437		$	8,435,861		$	8,216,458		$	8,097,387

Consolidated Capital Ratios as of:

	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Stockholders’ equity to total assets	13.59	%	13.27	%	12.99	%	13.00	%	12.86	%
Tangible stockholders’ equity to tangible assets¹	12.58	%	12.25	%	11.94	%	11.93	%	11.76	%
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax^{1, 2}	12.54	%	12.21	%	11.90	%	11.89	%	11.71	%
Tier 1 leverage ratio	12.75	%	12.44	%	12.39	%	12.47	%	12.11	%
Common equity tier 1 risk-based capital ratio	14.12	%	13.79	%	13.78	%	13.26	%	13.18	%
Tier 1 risk-based capital ratio	14.12	%	13.79	%	13.78	%	13.26	%	13.18	%
Total risk-based capital ratio	15.73	%	15.81	%	15.94	%	15.52	%	15.42	%

¹		Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
²		Tangible stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax.

Summary of Net Interest Margin:

	For the three months ended								For the year ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
(In thousands)	Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets
Loans¹		6,825,404	6.37	%		6,481,701	6.51	%		6,634,643	6.41	%		6,410,520	6.58	%
Investment securities		506,964	3.35	%		519,221	3.40	%		506,294	3.45	%		529,209	3.49	%
Interest-bearing cash and other assets		583,717	3.68	%		491,326	4.48	%		599,588	4.14	%		380,967	5.02	%
Total earning assets		7,916,085	5.98	%		7,492,248	6.16	%		7,740,525	6.04	%		7,320,696	6.28	%
Other assets		519,607				542,862				536,383				543,650
Total assets	$	8,435,692			$	8,035,110			$	8,276,908			$	7,864,346

Interest-bearing liabilities
Demand and NOW deposits	$	831,419	2.98	%	$	703,087	3.45	%	$	785,777	3.18	%	$	633,123	3.63	%
Savings deposits		381,978	0.55	%		404,762	0.64	%		393,771	0.57	%		412,941	0.69	%
Money market deposits		2,879,668	2.36	%		2,348,328	2.23	%		2,709,997	2.40	%		2,161,618	2.11	%
Certificates of deposit		1,284,200	3.49	%		1,589,721	4.08	%		1,432,539	3.71	%		1,756,755	4.51	%
Total deposits		5,377,265	2.60	%		5,045,898	2.85	%		5,322,084	2.73	%		4,964,437	3.03	%
Repurchase agreements		9,146	1.71	%		10,964	1.45	%		8,956	1.67	%		15,557	1.21	%
Total deposits and repurchase agreements		5,386,411	2.60	%		5,056,862	2.85	%		5,331,040	2.73	%		4,979,994	3.03	%
FHLB borrowings		—	—	%		121,957	5.02	%		7,847	4.61	%		124,833	5.48	%
Other long-term borrowings		36,650	5.82	%		75,778	6.41	%		66,094	6.85	%		75,586	6.55	%
Total interest-bearing liabilities		5,423,061	2.62	%		5,254,597	2.95	%		5,404,981	2.78	%		5,180,413	3.14	%
Noninterest-bearing deposits		1,698,126				1,581,571				1,615,511				1,542,808
Other liabilities		167,658				152,552				153,460				140,529
Stockholders’ equity		1,146,847				1,046,390				1,102,956				1,000,596
Total liabilities and stockholders’ equity	$	8,435,692			$	8,035,110			$	8,276,908			$	7,864,346

Net interest spread			3.36	%			3.21	%			3.26	%			3.14	%
Net interest margin			4.18	%			4.09	%			4.10	%			4.06	%
Net interest margin (on FTE basis)²			4.23	%			4.15	%			4.16	%			4.12	%

¹		Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
²		Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Summary of Net Interest Margin (cont’d ):

	For the three months ended
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
(In thousands)	Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate		Average Balance		Average Yield/Rate
Interest Earning Assets
Loans¹		6,825,404	6.37	%		6,667,158	6.49	%		6,620,493	6.43	%		6,420,710	6.36	%		6,481,701	6.51	%
Investment securities		506,964	3.35	%		505,999	3.43	%		510,350	3.48	%		501,809	3.53	%		519,221	3.40	%
Interest-bearing cash and other assets		583,717	3.68	%		714,885	4.25	%		596,713	4.28	%		500,857	4.37	%		491,326	4.48	%
Total earning assets		7,916,085	5.98	%		7,888,042	6.09	%		7,727,556	6.07	%		7,423,376	6.03	%		7,492,248	6.16	%
Other assets		519,607				540,079				537,156				548,976				542,862
Total assets	$	8,435,692			$	8,428,121			$	8,264,712			$	7,972,352			$	8,035,110

Interest-bearing liabilities
Demand and NOW deposits	$	831,419	2.98	%	$	796,192	3.29	%	$	793,461	3.26	%	$	720,700	3.21	%	$	703,087	3.45	%
Savings deposits		381,978	0.55	%		391,444	0.59	%		401,093	0.58	%		400,801	0.58	%		404,762	0.64	%
Money market deposits		2,879,668	2.36	%		2,852,860	2.58	%		2,659,342	2.42	%		2,441,737	2.19	%		2,348,328	2.23	%
Certificates of deposit		1,284,200	3.49	%		1,397,371	3.64	%		1,504,235	3.76	%		1,547,634	3.91	%		1,589,721	4.08	%
Total deposits		5,377,265	2.60	%		5,437,867	2.81	%		5,358,131	2.78	%		5,110,872	2.73	%		5,045,898	2.85	%
Repurchase agreements		9,146	1.71	%		8,055	1.82	%		9,024	1.61	%		9,615	1.57	%		10,964	1.45	%
Total deposits and repurchase agreements		5,386,411	2.60	%		5,445,922	2.81	%		5,367,155	2.78	%		5,120,487	2.73	%		5,056,862	2.85	%
FHLB borrowings		—	—	%		—	—	%		2,308	4.72	%		29,489	4.60	%		121,957	5.02	%
Other long-term borrowings		36,650	5.82	%		76,117	8.41	%		76,025	6.19	%		75,907	6.43	%		75,778	6.41	%
Total interest-bearing liabilities		5,423,061	2.62	%		5,522,039	2.89	%		5,445,488	2.83	%		5,225,883	2.79	%		5,254,597	2.95	%
Noninterest-bearing deposits		1,698,126				1,642,346				1,587,302				1,532,150				1,581,571
Other liabilities		167,658				145,730				145,064				155,337				152,552
Stockholders’ equity		1,146,847				1,118,006				1,086,858				1,058,982				1,046,390
Total liabilities and stockholders’ equity	$	8,435,692			$	8,428,121			$	8,264,712			$	7,972,352			$	8,035,110

Net interest spread			3.36	%			3.20	%			3.24	%			3.24	%			3.21	%
Net interest margin			4.18	%			4.07	%			4.07	%			4.07	%			4.09	%
Net interest margin (on FTE basis)²			4.23	%			4.12	%			4.13	%			4.13	%			4.15	%

¹		Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.
²		Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Deposits as of:

($ in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Consumer
Noninterest-bearing deposit accounts	$	404,666	$	412,568	$	426,909	$	412,734	$	410,303
Interest-bearing deposit accounts:
Demand and NOW		110,155		129,148		113,415		93,675		61,987
Savings		308,655		314,954		322,672		330,489		326,916
Money market		1,880,973		1,885,609		1,803,348		1,600,413		1,516,577
Certificates of deposit		809,401		869,077		937,439		1,065,839		1,069,704
Total interest-bearing deposit accounts		3,109,184		3,198,788		3,176,874		3,090,416		2,975,184
Total consumer deposits	$	3,513,850	$	3,611,356	$	3,603,783	$	3,503,150	$	3,385,487
Business
Noninterest-bearing deposit accounts	$	1,246,707	$	1,261,929	$	1,279,769	$	1,162,002	$	1,130,855
Interest-bearing deposit accounts:
Demand and NOW		738,506		725,028		684,340		654,914		669,417
Savings		69,976		71,281		74,448		75,132		75,422
Money market		1,056,044		951,410		965,998		968,740		915,208
Certificates of deposit		57,349		57,225		56,930		65,420		51,131
Total interest-bearing deposit accounts		1,921,875		1,804,944		1,781,716		1,764,206		1,711,178
Total business deposits	$	3,168,582	$	3,066,873	$	3,061,485	$	2,926,208	$	2,842,033
Wholesale deposits¹	$	424,924	$	427,186	$	434,896	$	444,881	$	444,740
Total deposits	$	7,107,356	$	7,105,415	$	7,100,164	$	6,874,239	$	6,672,260

¹		Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit.

Balance Sheet Ratios as of:

	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Cash to total assets¹	7.60	%	7.70	%	9.20	%	7.50	%	7.50	%
Loan to deposit ratio	93.9	%	94.0	%	91.6	%	94.3	%	95.6	%
Uninsured deposits to total deposits²	36.6	%	36.2	%	37.0	%	35.2	%	34.8	%
Uninsured and uncollateralized deposits to total deposits²	29.0	%	28.3	%	28.3	%	26.4	%	25.2	%
Wholesale deposits and borrowings to total liabilities³	5.8	%	5.8	%	5.9	%	6.7	%	8.2	%

¹		Cash consists of cash and amounts due from banks and interest-bearing deposits with other financial institutions.
²		Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated.
³		Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit. Wholesale borrowings consist of FHLB overnight and term advances.

Loan Portfolio as of:

($ in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024
Commercial and industrial¹	$	2,937,867	$	2,945,697	$	2,779,767	$	2,764,035	$	2,627,591
Commercial real estate:
Non-owner occupied		742,002		725,425		705,749		733,949		752,628
Owner occupied		700,774		668,172		660,334		677,341		700,867
Construction and land		268,652		343,803		383,969		386,056		362,677
Multifamily		210,368		183,504		134,520		85,239		94,355
Total commercial real estate		1,921,796		1,920,904		1,884,572		1,882,585		1,910,527
Residential real estate²		1,221,086		1,209,742		1,226,760		1,195,714		1,180,610
Public Finance		501,582		516,247		524,441		551,252		554,784
Consumer		32,651		38,931		42,881		38,896		41,144
Other		58,198		50,108		48,645		51,526		61,701
Loans, net of deferred costs, fees, premiums, and discounts	$	6,673,180	$	6,681,629	$	6,507,066	$	6,484,008	$	6,376,357

¹		As of September 30, 2025, loans to nondepository financial institutions are now included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation.
²		Includes 1-4 family residential construction.

Asset Quality:

	As of and for the three months ended															As of and for the year ended
($ in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Net charge-offs (recoveries)	$	5,024		$	9,053		$	13,547		$	631		$	(462	)	$	28,255		$	20,377
Allowance for credit losses	$	85,016		$	84,040		$	82,993		$	91,790		$	88,221		$	85,016		$	88,221
Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due	$	60,771		$	69,641		$	54,841		$	78,590		$	69,050		$	60,771		$	69,050
Nonperforming assets	$	72,285		$	83,059		$	67,893		$	83,504		$	74,188		$	72,285		$	74,188
Ratio of net charge-offs (recoveries) to average loans outstanding		0.30	%		0.55	%		0.83	%		0.04	%		(0.03	)%		0.43	%		0.32	%
Allowance for credit losses to loans outstanding		1.27	%		1.26	%		1.28	%		1.42	%		1.38	%		1.27	%		1.38	%
Allowance for credit losses to nonperforming loans		139.90	%		120.68	%		151.33	%		116.80	%		127.76	%		139.90	%		127.76	%
Nonperforming loans to loans		0.91	%		1.04	%		0.84	%		1.21	%		1.08	%		0.91	%		1.08	%
Nonperforming assets to total assets		0.85	%		0.98	%		0.80	%		1.02	%		0.92	%		0.85	%		0.92	%

Non-GAAP Financial Measures and Reconciliations:

	As of and for the three months ended															As of and for the year ended
($ in thousands, except share and per share amounts)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Tangible stockholders’ equity to tangible assets:
Total stockholders’ equity (GAAP)	$	1,153,356		$	1,127,513		$	1,095,402		$	1,068,295		$	1,041,366		$	1,153,356		$	1,041,366
Less: Goodwill and other intangible assets
Goodwill		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)
Other intangible assets		(4,983	)		(5,650	)		(6,228	)		(6,806	)		(7,434	)		(4,983	)		(7,434	)
Tangible stockholders’ equity (non-GAAP)	$	1,054,890		$	1,028,380		$	995,691		$	968,006		$	940,449		$	1,054,890		$	940,449
Total assets (GAAP)	$	8,485,162		$	8,495,437		$	8,435,861		$	8,216,458		$	8,097,387		$	8,485,162		$	8,097,387
Less: Goodwill and other intangible assets
Goodwill		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)		(93,483	)
Other intangible assets		(4,983	)		(5,650	)		(6,228	)		(6,806	)		(7,434	)		(4,983	)		(7,434	)
Tangible assets (non-GAAP)	$	8,386,696		$	8,396,304		$	8,336,150		$	8,116,169		$	7,996,470		$	8,386,696		$	7,996,470
Total stockholders’ equity to total assets (GAAP)		13.59	%		13.27	%		12.99	%		13.00	%		12.86	%		13.59	%		12.86	%
Less: Impact of goodwill and other intangible assets		(1.01	)%		(1.02	)%		(1.05	)%		(1.07	)%		(1.10	)%		(1.01	)%		(1.10	)%
Tangible stockholders’ equity to tangible assets (non-GAAP)		12.58	%		12.25	%		11.94	%		11.93	%		11.76	%		12.58	%		11.76	%
Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:
Tangible stockholders’ equity (non-GAAP)	$	1,054,890		$	1,028,380		$	995,691		$	968,006		$	940,449		$	1,054,890		$	940,449
Less: Net unrealized losses on HTM securities, net of tax		(3,320	)		(3,432	)		(4,238	)		(3,803	)		(4,292	)		(3,320	)		(4,292	)
Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	1,051,570		$	1,024,948		$	991,453		$	964,203		$	936,157		$	1,051,570		$	936,157
Tangible assets (non-GAAP)	$	8,386,696		$	8,396,304		$	8,336,150		$	8,116,169		$	7,996,470		$	8,386,696		$	7,996,470
Less: Net unrealized losses on HTM securities, net of tax		(3,320	)		(3,432	)		(4,238	)		(3,803	)		(4,292	)		(3,320	)		(4,292	)
Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)	$	8,383,376		$	8,392,872		$	8,331,912		$	8,112,366		$	7,992,178		$	8,383,376		$	7,992,178
Tangible stockholders’ equity to tangible assets (non-GAAP)		12.58	%		12.25	%		11.94	%		11.93	%		11.76	%		12.58	%		11.76	%
Less: Impact of net unrealized losses on HTM securities, net of tax		(0.04	)%		(0.04	)%		(0.04	)%		(0.04	)%		(0.05	)%		(0.04	)%		(0.05	)%
Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)		12.54	%		12.21	%		11.90	%		11.89	%		11.71	%		12.54	%		11.71	%
Tangible book value per share:
Total stockholders’ equity (GAAP)	$	1,153,356		$	1,127,513		$	1,095,402		$	1,068,295		$	1,041,366		$	1,153,356		$	1,041,366
Tangible stockholders’ equity (non-GAAP)	$	1,054,890		$	1,028,380		$	995,691		$	968,006		$	940,449		$	1,054,890		$	940,449
Total shares outstanding		27,887,337			27,854,764			27,834,525			27,753,918			27,709,679			27,887,337			27,709,679
Book value per share (GAAP)	$	41.36		$	40.48		$	39.35		$	38.49		$	37.58		$	41.36		$	37.58
Tangible book value per share (non-GAAP)	$	37.83		$	36.92		$	35.77		$	34.88		$	33.94		$	37.83		$	33.94
Adjusted net income:
Net income (GAAP)	$	24,807		$	23,174		$	26,386		$	23,569		$	16,350		$	97,936		$	75,628
Add: Adjustments
Merger related expenses, net of tax		2,116			238			215			—			5,799			2,569			9,949
Write-off of Guardian Mortgage tradename, net of tax		—			—			—			—			625			—			625
Disposal of ATMs, net of tax		—			—			—			—			1,542			—			1,542
Total adjustments, net of tax		2,116			238			215			—			7,966			2,569			12,116
Adjusted net income (non-GAAP)	$	26,923		$	23,412		$	26,601		$	23,569		$	24,316		$	100,505		$	87,744
Adjusted diluted earnings per share:
Diluted earnings per share (GAAP)	$	0.88		$	0.82		$	0.93		$	0.83		$	0.58		$	3.47		$	2.69
Add: Impact of adjustments
Merger related expenses, net of tax		0.07			0.01			0.01			—			0.21			0.09			0.36
Write-off of Guardian Mortgage tradename, net of tax		—			—			—			—			0.02			—			0.02
Disposal of ATMs, net of tax		—			—			—			—			0.05			—			0.06
Adjusted diluted earnings per share (non-GAAP)	$	0.95		$	0.83		$	0.94		$	0.83		$	0.86		$	3.56		$	3.13
Adjusted return on average total assets:
Return on average total assets (ROAA) (GAAP)		1.17	%		1.09	%		1.28	%		1.20	%		0.81	%		1.18	%		0.96	%
Add: Impact of adjustments
Merger related expenses, net of tax		0.10	%		0.01	%		0.01	%		—	%		0.28	%		0.03	%		0.13	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		—	%		—	%		—	%		0.03	%		—	%		0.01	%
Disposal of ATMs, net of tax		—	%		—	%		—	%		—	%		0.08	%		—	%		0.02	%
Adjusted ROAA (non-GAAP)		1.27	%		1.10	%		1.29	%		1.20	%		1.20	%		1.21	%		1.12	%
Adjusted return on average stockholders’ equity:
Return on average stockholders’ equity (ROACE) (GAAP)		8.58	%		8.22	%		9.74	%		9.03	%		6.22	%		8.88	%		7.56	%
Add: Impact of adjustments
Merger related expenses, net of tax		0.73	%		0.09	%		0.08	%		—	%		2.19	%		0.23	%		1.00	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		—	%		—	%		—	%		0.24	%		—	%		0.06	%
Disposal of ATMs, net of tax		—	%		—	%		—	%		—	%		0.59	%		—	%		0.15	%
Adjusted ROACE (non-GAAP)		9.31	%		8.31	%		9.82	%		9.03	%		9.24	%		9.11	%		8.77	%
Return on average tangible stockholders’ equity
Return on average stockholders’ equity (ROACE) (GAAP)		8.58	%		8.22	%		9.74	%		9.03	%		6.22	%		8.88	%		7.56	%
Add: Impact from goodwill and other intangible assets
Goodwill		0.81	%		0.81	%		0.98	%		0.94	%		0.67	%		0.88	%		0.87	%
Other intangible assets		0.19	%		0.17	%		0.19	%		0.21	%		0.47	%		0.19	%		0.31	%
Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)		9.58	%		9.20	%		10.91	%		10.18	%		7.36	%		9.95	%		8.74	%
Adjusted return on average tangible stockholders’ equity:
Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)		9.58	%		9.20	%		10.91	%		10.18	%		7.36	%		9.95	%		8.74	%
Add: Impact of adjustments
Merger related expenses, net of tax		0.80	%		0.10	%		0.09	%		—	%		2.45	%		0.26	%		1.11	%
Write-off of Guardian Mortgage tradename, net of tax		—	%		—	%		—	%		—	%		0.26	%		—	%		0.07	%
Disposal of ATMs, net of tax		—	%		—	%		—	%		—	%		0.65	%		—	%		0.17	%
Adjusted ROATCE (non-GAAP)		10.38	%		9.30	%		11.00	%		10.18	%		10.72	%		10.21	%		10.09	%
Adjusted total noninterest expense:
Total noninterest expense (GAAP)	$	72,041		$	68,901		$	68,110		$	62,722		$	73,673		$	271,774		$	264,040
Less: Adjustments:
Merger related expenses		(2,217	)		(241	)		(285	)		—			(8,010	)		(2,743	)		(13,178	)
Write-off of Guardian Mortgage tradename		—			—			—			—			(828	)		—			(828	)
Disposal of ATMs		—			—			—			—			(2,042	)		—			(2,042	)
Total adjustments		(2,217	)		(241	)		(285	)		—			(10,880	)		(2,743	)		(16,048	)
Adjusted total noninterest expense (non-GAAP)	$	69,824		$	68,660		$	67,825		$	62,722		$	62,793		$	269,031		$	247,992
Adjusted efficiency ratio:
Efficiency ratio (GAAP)		65.37	%		64.22	%		64.52	%		65.19	%		74.66	%		64.82	%		68.28	%
Less: Impact of adjustments
Merger related expenses		(2.01	)%		(0.22	)%		(0.27	)%		—	%		(8.12	)%		(0.65	)%		(3.41	)%
Write-off of Guardian Mortgage tradename		—	%		—	%		—	%		—	%		(0.84	)%		—	%		(0.21	)%
Disposal of ATMs		—	%		—	%		—	%		—	%		(2.07	)%		—	%		(0.53	)%
Adjusted efficiency ratio (non-GAAP)		63.36	%		64.00	%		64.25	%		65.19	%		63.63	%		64.17	%		64.13	%
Fully tax equivalent (“FTE”) net interest income and net interest margin:
Net interest income (GAAP)	$	83,461		$	80,953		$	78,499		$	74,478		$	77,047		$	317,391		$	296,910
Gross income effect of tax exempt income		1,156			1,225			1,204			1,192			1,161			4,777			4,767
FTE net interest income (non-GAAP)	$	84,617		$	82,178		$	79,703		$	75,670		$	78,208		$	322,168		$	301,677
Average earning assets	$	7,916,085		$	7,888,042		$	7,727,556		$	7,423,376		$	7,492,248		$	7,740,525		$	7,320,696
Net interest margin		4.18	%		4.07	%		4.07	%		4.07	%		4.09	%		4.10	%		4.06	%
Net interest margin on FTE basis (non-GAAP)		4.23	%		4.12	%		4.13	%		4.13	%		4.15	%		4.16	%		4.12	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260123862881/en/

Commercial Bancgroup, Inc. Announces Results for the Fourth Quarter 2025

Commercial Bancgroup, Inc. on February 5, 2026

HARROGATE, TENNESSEE / ACCESS Newswire / January 26, 2026 / Commercial Bancgroup, Inc. (“Commercial” or the “Company”) (Nasdaq:CBK), the parent company of Commercial Bank (the “Bank”), today announced net income less non-controlling interest of $9.9 million, or $0.72 per diluted common share, for the fourth quarter of 2025, compared to net income less non-controlling interest of $5.6 million, or $0.46 per diluted common share, for the fourth quarter of 2024.

On October 1, 2025, the Company priced its initial public offering (the “IPO”) of 7,173,092 shares of its common stock 1,458,343 of which were sold by Commercial and 5,714,758 of which were sold by certain selling shareholders, at a public offering price of $24.00 per share.

Prior to September 18, 2025, Commercial had three classes of common stock outstanding: common stock, Class B common stock, and Class C common stock. On September 18, 2025, Commercial’s charter was amended and restated. The Company’s amended and restated charter provided for, among other things:

effective upon the filing of the amended and restated charter, the reclassification and conversion of (i) each outstanding share of Class B common stock into 1.15 shares of common stock and (ii) each outstanding share of Class C common stock into 1.05 shares of common stock (collectively, the “Stock Reclassification”); and
effective immediately following the Stock Reclassification, a 250-for-1 forward stock split in respect of the outstanding shares of our common stock (the “Stock Split”).

Our financial statements, including earnings per share and book value per share, reflect the stock Reclassification and Stock Split retroactively. Because the IPO occurred after September 30, 2025, the financial impacts of the IPO are reflected for the fourth quarter of 2025 in the financial statements presented in this press release.

Fourth Quarter 2025 Performance Highlights:

Net income of $9.9 million or $0.72 per diluted share
Return on average assets (“ROAA”) of 1.76%
Return on average equity (“ROAE”) of 15.26%; Return on average tangible common equity (“ROATCE”) of 15.99%
Net interest margin of 4.01%, a decrease of 1 basis points from the third quarter of 2025
Efficiency ratio of 45.24%
Gross loans increased $106.3 million during the quarter, or 24% annualized, from the third quarter
Book value per share increased $0.78, or 16% annualized, to $20.81 and tangible book value per increased $0.91, or 19% annualized, to $19.96 at December 31, 2025 from the third quarter of 2025
Net charge-offs to average loans of 0.014% and Nonperforming assets to total assets of 0.28%
Redeemed $20.3 million of holding company debt

2025 highlights:

Net income less non-controlling interest of $36.9 million or $2.93 per share and $2.92 per diluted share for the twelve months ended December 31, 2025, compared to $31.4 million or $2.58 per share and $2.54 per diluted share for the twelve months ended December 31, 2024.
Return on average assets of 1.61% for the twelve months ended December 31, 2025, compared to 1.40% for the twelve months ended December 31, 2024.
Return on average shareholders’ equity of 15.60% for the twelve months ended December 31, 2025, compared to 15.30% for the twelve months ended December 31, 2024.
Total operating revenue of $90.4 million for the twelve months ended December 31, 2025, compared to $88.5 million for the twelve months ended December 31, 2024.
Non-interest expense of $42.5 million for the twelve months ended December 31, 2025, compared to $46.1 million for the twelve months ended December 31, 2024.
Tangible book value per share of $19.96 per share as of December 31, 2025, compared to $17.11 per share as of December 31, 2024 (see non-GAAP reconciliation).
Efficiency ratio of 47.0% for the twelve months ended December 31, 2025, compared to 48.9% for the twelve months ended December 31, 2024.

Balance Sheet Trends

Total assets were $2.3 billion as of December 31, 2025, compared to $2.3 billion as of December 31, 2024. This was primarily due to a decrease in the loan portfolio during the first three quarters of the year offset by loan growth during the fourth quarter.

Total net loans were $1.9 billion as of December 31, 2025, an increase of $66.9 million, or 3.7%, from December 31, 2024. While the Bank experienced some large loan payoffs from long-term borrowers selling businesses during the year, the Bank had strong loan growth during the fourth quarter. Total net loans increased by $106.5 million or 6.1% from $1.7 billion as of September 30, 2025.

As of December 31, 2025, the Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 14.1%, a Tier 1 risk-based capital ratio of 13.1%, a common equity Tier 1 capital ratio of 13.1%, and a Tier 1 leverage ratio of 10.8%.

Total deposits were $1.8 billion as of December 31, 2025, a decrease of $122.9 million, or 6.3%, from December 31, 2024. This decrease was primarily driven by a $126.9 million reduction in brokered deposits to $48.0 million at December 31, 2025, from $174.9 million at December 31, 2024.

Noninterest bearing demand deposits increased $1.2 million, or 0.3%, to $397.8 million as of December 31, 2025, from $396.6 million as of December 31, 2024.

Non-brokered deposits were $1.8 billion as of December 31, 2025, an increase of $4.1 million, or 0.2%, from December 31, 2024. This increase was primarily driven by normal customer business cycles.

Asset quality decreased slightly with nonperforming assets to total assets of .28% as of December 31, 2025 and compared to .26% as of December 31, 2024. The allowance for credit losses to total loans decreased slightly to 0.95% as of December 31, 2025 from 1.00% as of December 31, 2014.

Net Income Before Income Taxes

Net income before income taxes was $47.7 million for the twelve months ended December 31, 2025, an increase of $7.2 million, or 17.6%, from the twelve months ended December 31, 2024. The increase was primarily the result of an increase in net interest income after provision for credit losses of $4.5 million or 6.0% and a decrease of noninterest expense of $3.6 million or 7.8%.

Non-Interest Income

Non-interest income was $9.9 million for the twelve months ended December 31, 2025, a decrease of $0.9 million, or 8.7%, from the twelve months ended December 31, 2024. This decrease was primarily due to one-time gains on the sale of bank property during 2024 of $0.4 million.

About Commercial Bancgroup, Inc.

Commercial Bancgroup, Inc. is a bank holding company headquartered in Harrogate, Tennessee. Through a wholly owned subsidiary, Commercial Bank, a Tennessee state-chartered bank, the Bank offers a suite of traditional consumer and commercial banking products and services to businesses and individuals in select markets in Kentucky, North Carolina, and Tennessee. More information about Commercial can be found on its website at www.cbtn.com.

Commercial Bancgroup, Inc.
Financial Tables

Financial Highlights (unaudited)													Table 1A
	As of and for the Three Months Ended										As of and for the Twelve Months Ended
(dollars in thousands except per share amounts)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Selected Operating Data:
Interest and Dividend Income	$	29,958	$	30,021	$	30,859	$	30,766	$	31,334	$	121,604	$	123,213
Interest Expense		9,148		9,799		10,800		11,426		11,566		41,173		45,629
Net Interest Income		20,810		20,222		20,059		19,340		19,768		80,431		77,584
Provision for Credit Losses		150		–		–		–		6		150		1,829
Net Interest Income After Provision for Credit Losses		20,660		20,222		20,059		19,340		19,762		80,281		75,755
Noninterest Income		2,666		2,626		2,194		2,443		3,000		9,930		10,878
Noninterest Expense		10,621		10,552		10,725		10,581		13,916		42,480		46,061
Income Before Income Taxes		12,705		12,296		11,528		11,202		8,846		47,731		40,572
Provision for Income Taxes		2,792		2,829		2,658		2,510		3,235		10,789		8,886
Net Income		9,913		9,467		8,870		8,692		5,611		36,942		31,686
Less: Net Income Attributable to Noncontrolling Interest		–		–		–		–		–		–		276
Net Income attributable to Commercial Bancgroup, Inc.		9,913		9,467		8,870		8,692		5,611		36,942		31,410
(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures tables 10A – 10I

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Financial Highlights (unaudited)
	As of and for the Three Months Ended										As of and for the Twelve Months Ended
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Share and Per Share Data:
Basic earnings per share	$	0.72	$	0.77	$	0.72	$	0.71	$	0.46	$	2.93	$	2.58
Diluted earnings per share	$	0.72	$	0.77	$	0.73	$	0.72	$	0.46	$	2.92	$	2.54
Book value per share	$	20.81	$	20.03	$	19.22	$	18.48	$	18.18	$	20.81	$	18.18
Tangible book value per share (1)	$	19.96	$	19.05	$	18.22	$	17.45	$	17.11	$	19.96	$	17.11
Shares of common stock outstanding		13,697,987		12,239,644		12,239,644		12,239,644		12,113,114		13,697,987		12,113,114
Weighted average diluted shares outstanding		13,835,816		12,188,624		12,137,013		12,137,013		12,301,998		13,835,816		12,367,248
(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures tables 10A – 10I

Financial Highlights (unaudited)
	As of and for the Three Months Ended										As of and for the Twelve Months Ended
(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Selected Balance Sheet Data:
Total assets	$	2,291,112	$	2,214,408	$	2,262,511	$	2,266,878	$	2,301,211	$	2,291,112	$	2,301,211
Securities available-for-sale at fair value		43,137		29,556		30,113		48,830		47,938		43,137		47,938
Securities held-to-maturity, at carrying value, net of allowance for credit losses		97,728		131,915		157,452		140,019		128,217		97,728		128,217
Gross loans less deferred fees and discounts		1,873,533		1,767,193		1,791,516		1,795,178		1,806,997		1,873,533		1,806,997
Allowance for credit losses		17,830		17,942		17,989		18,109		18,205		17,830		18,205
Goodwill and other intangible assets		12,767		13,149		13,546		13,938		14,339		12,767		14,339
Total deposits		1,815,734		1,780,634		1,851,248		1,902,207		1,938,597		1,815,734		1,938,597
Core deposits (1)		1,665,470		1,631,921		1,628,816		1,659,301		1,669,380		1,665,470		1,669,380
Other borrowings		166,838		162,760		148,509		109,090		109,165		166,838		109,165
Total Shareholders’ equity		285,090		245,153		235,268		226,180		220,256		285,090		220,256
(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures tables 10

Financial Highlights (unaudited)													Table 1B
	As of and for the Three Months Ended										As of and for the Twelve Months Ended
(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Performance Ratios
Pre-tax Pre-provision net revenue (PPNR) (1)	$	12,855	$	12,296	$	11,528	$	11,202	$	8,851	$	47,881	$	42,401
Return on average assets (ROAA)		1.76		1.69		1.57		1.52		0.99		1.61		1.40
Return on average equity (ROAE)		15.26		15.81		15.57		15.81		10.38		15.60		15.30
Return on average tangible common equity (ROATCE) (1)		15.99		16.65		16.43		16.75		11.03		16.44		16.49
Net interest rate spread		3.34		3.32		3.11		2.98		3.10		3.20		3.05
Net interest margin		4.01		4.02		3.84		3.63		3.77		3.87		3.75
Cost of Funds		1.88		2.07		2.18		2.25		2.31		2.10		2.31
Efficiency ratio		45.24		46.19		48.20		48.57		61.12		47.01		48.92
Noninterest income to average assets		0.47		0.48		0.39		0.43		0.53		0.44		0.49
Noninterest expense to average assets		1.89		1.94		1.91		1.85		2.47		1.90		2.08
Average interest-earning assets to average interest-bearing liabilities		1.38		1.36		1.31		1.30		1.31		1.34		1.32
Average equity to average total assets		0.12		0.11		0.10		0.10		0.09		0.11		0.09

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures tables 10

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Financial Highlights (unaudited)
	As of and for the Three Months Ended															As of and for the Twelve Months Ended
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Asset Quality Data:
Net charge-offs to average loans		0.01	%		0.00	%		0.01	%		0.01	%		0.00	%		0.03	%		0.01	%
Total allowance for credit losses to total loans		0.95			1.02			1.00			1.01			1.01			0.95			1.01
Total allowance for credit losses to nonperforming loans		286	%		333	%		307	%		375	%		360	%		286	%		360	%
Nonperforming loans to gross loans		0.33	%		0.31	%		0.33	%		0.27	%		0.28	%		0.33	%		0.28	%
Nonperforming assets to total assets		0.28	%		0.27	%		0.30	%		0.24	%		0.26	%		0.28	%		0.26	%

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Financial Highlights (unaudited)
	As of and for the Three Months Ended															As of and for the Twelve Months Ended
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Balance Sheet and Capital Ratios (Commercial Bancgroup, Inc.)
Loan-to-deposit ratio		103.18	%		99.25	%		96.77	%		94.37	%		93.21	%		103.18	%		93.21	%
Noninterest bearing deposits to total deposits		21.91	%		22.39	%		22.53	%		22.05	%		20.46	%		21.91	%		20.46	%
Total shareholders’ equity to total assets		12.44	%		11.07	%		10.40	%		9.98	%		9.57	%		12.44	%		9.57	%
Tangible common equity to tangible assets (1)		12.00	%		10.59	%		9.92	%		9.48	%		9.07	%		12.00	%		9.07	%
Tier 1 leverage ratio		12.19	%		11.03	%		10.22	%		9.63	%		9.51	%		12.19	%		9.51	%
Common equity tier 1 ratio		14.99	%		12.83	%		12.26	%		11.62	%		11.11	%		14.99	%		11.11	%
Total risk-based capital ratio		15.96	%		14.12	%		13.55	%		12.90	%		12.37	%		15.96	%		12.37	%
Other

Number of branches		34			34			34			34			34			34			34
Number of full-time equivalent employees		287			287			289			284			279			287			279

(1) Considered non-GAAP financial measure – See “Non-GAAP Financial Measures” and reconciliation of GAAP to non-GAAP financial measures tables 10

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Quarter End Balance Sheets (unaudited)													Table 2

(dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025				December 31, 2024
Assets
Cash and due from banks	$	118,989		$	122,945		$	108,501		$	113,190			$	134,455
Federal funds sold		25,329			31,841			42,782			37,303				43,743
Investment securities		140,865			161,471			187,565			188,849				176,155
Gross loans less deferred fees and discounts		1,873,533			1,767,193			1,791,516			1,795,178				1,806,997
Allowance for credit losses		(17,830	)		(17,942	)		(17,989	)		(18,109	)			(18,205	)
Loans, net of allowance for credit losses		1,855,703			1,749,251			1,773,527			1,777,069				1,788,792
Premises and equipment, net		49,765			50,268			50,337			50,038				50,288
Foreclosed assets held for sale, net		253			533			861			565				832
Bank owned life insurance		46,648			46,482			46,480			46,191				45,883
Goodwill and other intangible assets		12,767			13,149			13,546			13,938				14,339
Deferred tax asset		1,427			1,427			1,029			1,029				1,079
Other		39,366			37,041			37,883			38,706				45,645
Total Assets	$	2,291,112		$	2,214,408		$	2,262,511		$	2,266,878			$	2,301,211

Liabilities and Shareholders’ Equity
Liabilities
Deposits
Demand		913,986			928,958			926,886			960,915				976,481
Savings, NOW and money market		414,716			382,002			382,788			390,491				385,615
Time		487,032			469,674			541,574			550,800				576,501
Total deposits		1,815,734			1,780,634			1,851,248			1,902,206				1,938,597
Short-term borrowings		88,251			62,663			46,300			5,900				3,392
Long-term debt		78,587			100,097			102,209			103,190				105,773
Interest Payable		2,962			3,410			4,545			5,157				4,225
Other Liabilities		20,488			22,451			22,941			24,246				28,968
Total Liabilities	$	2,006,022		$	1,969,255		$	2,027,243		$	2,040,699			$	2,080,955

Shareholders’ Equity
Common stock		137			122			122			122				121
Additional paid-in capital		38,377			8,406			8,406			8,406				9,388
Retained earnings		247,251			237,366			227,900			219,000				212,312
Accumulated other comprehensive loss		(675	)		(741	)		(1,160	)		(1,349	)			(1,565	)
Total Shareholders’ equity		285,090			245,153			235,268			226,179				220,256
Total liabilities and shareholders’ equity	$	2,291,112		$	2,214,408		$	2,262,511		$	2,266,878			$	2,301,211

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Statement of Operations (unaudited)														Table 3
	As of and for the Three Months Ended											As of and for the Twelve Months Ended
(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025			December 31, 2024		December 31, 2025			December 31, 2024
Interest and Dividend Income
Loans, including fees	$	27,866	$	28,074	$	28,432	$	27,930		$	28,422	$	112,301		$	113,391
Debt securities-taxable		739		929		1,070		975			764		3,714			2,679
Debt securities-tax-exempt		114		102		116		110			91		442			368
Dividends on restricted stock		157		156		148		160			184		621			700
Interest-bearing deposits		1,082		760		1,093		1,591			1,872		4,526			6,075
Total interest and dividend income		29,958		30,021		30,859		30,766			31,333		121,604			123,213

Interest expense
Deposits		8,441		8,654		9,717		10,294			10,377		37,107			40,352
Short-term borrowings		18		55		44		31			40		148			205
Long-term debt		689		1,090		1,039		1,101			1,149		3,919			5,072

Total interest expense		9,148		9,799		10,800		11,426			11,566		41,174			45,629
Net interest income		20,810		20,222		20,059		19,340			19,767		80,430			77,584

Provision for credit losses		150		–		–		–			5		150			1,829
Net interest income after provision for credit losses		20,660		20,222		20,059		19,340			19,762		80,280			75,755

Noninterest Income
Customer service fees		779		735		674		655			882		2,844			3,041
Net gains on sales of premises and equipment		13		20		2		(28	)		347		38			759
Net gains on sales of foreclosed assets		48		110		1		3			2		161			153
ATM fees		877		846		891		799			849		3,413			3,281
Increase in BOLI		342		306		336		308			323		1,292			1,199
Other		607		609		290		706			597		2,182			2,445

Total noninterest income		2,666		2,626		2,194		2,443			3,000		9,930			10,878

Noninterest Expense
Salaries and employee benefits		5,753		5,729		5,657		5,626			8,021		22,764			24,873
Occupancy		734		738		774		875			1,135		3,264			3,786
Data processing		1,068		1,103		1,151		1,207			842		4,530			4,235
Deposit insurance premiums		234		267		245		226			254		972			1,129
Professional fees		229		136		286		195			37		846			1,017
Depreciation and amortization		1,001		955		803		948			992		3,706			4,109
Other		1,602		1,624		1,809		1,504			2,635		6,397			6,912

Total noninterest expense		10,621		10,552		10,725		10,581			13,916		42,479			46,061

Income before income taxes		12,705		12,296		11,528		11,202			8,846		47,731			40,572
Provision for income taxes		2,792		2,829		2,658		2,510			3,235		10,789			8,886
Net Income		9,913		9,467		8,870		8,692			5,611		36,942			31,686
Less: Net Income Attributable to Noncontrolling Interest		–		–		–		–			–		–			276
Net Income attributable to Commercial Bancgroup, Inc.	$	9,913	$	9,467	$	8,870	$	8,692		$	5,611	$	36,942		$	31,410

QTD Average Balances and Yields/Rates (unaudited)														Table 4
	Three Months Ended
(dollars in thousands)	December 31, 2025								September 30, 2025
	Average Balance			Interest		Yield/ Rate			Average Balance			Interest			Yield/ Rate
Interest Earning Assets
Gross loans, net of unearned income	$	1,807,127		$	27,866		6.2	%	$	1,767,379		$	28,074			6.4	%
Investment securities		152,782			1,011		2.6	%		169,679			1,187			2.8	%
Other interest-earning assets		116,517			1,081		3.7	%		76,746			760			4.0	%
Total interest-earning assets		2,076,426			29,958		5.8	%		2,013,804			30,021			6.0	%

Noninterest-earning assets:
Allowance for credit losses		(17,954	)							(17,971	)
Noninterest-earning assets		190,810								175,036

Total Assets		2,249,282								2,170,869

Interest-bearing liabilities:
Interest-bearing DDAs		518,495			2,647		2.0	%		509,726			2,806			2.2	%
NOW, savings and MMDA deposits		427,419			1,585		1.5	%		380,421			1,396			1.5	%
Time Deposits		475,972			4,209		3.5	%		486,555			4,452			3.7	%
Federal Home Loan bank advances		60,781			444		2.9	%		61,827			455			2.9	%
Other borrowings		24,953			263		4.2	%		45,934			690			6.0	%
Total interest-bearing liabilities		1,507,620			9,148		2.4	%		1,484,463			9,799			2.6	%

Noninterest bearing liabilities:
Noninterest bearing deposits		434,578								413,376
Other liabilities		47,299								33,557
Total noninterest bearing liabilities		481,877								446,933
Shareholders’ equity		259,785								239,473
Total liabilities and shareholders’ equity		2,249,282								2,170,869
Net interest income					20,810								20,222
Net interest spread							3.3	%								3.3	%
Net interest margin							4.0	%								4.0	%

Cost interest bearing deposits							2.37	%								2.51	%
Cost of funds							2.43	%								2.64	%

YTD Average Balances and Yields/Rates (unaudited)														Table 5
	Twelve Months Ended
	December 31, 2025								December 31, 2024
(dollars in thousands)	Average Balance			Interest		Yield/ Rate			Average Balance			Interest			Yield/ Rate

Interest Earning Assets
Gross loans, net of unearned income		1,791,550			112,301		6.27	%		1,738,433			113,391			6.52	%
Investment securities		173,927			4,777		2.75	%		204,554			3,747			1.83	%
Other interest-earning assets		112,578			4,526		4.02	%		123,380			6,075			4.92	%
Total interest-earning assets		2,078,055			121,604		5.85	%		2,066,367			123,213			5.96	%

Noninterest-earning assets:
Allowance for credit losses		(18,102	)							(17,568	)
Noninterest-earning assets		179,515								168,624

Total Assets		2,239,468								2,217,423

Interest-bearing liabilities:
Interest-bearing DDAs		533,325			11,730		2.20	%		497,662			11,757			2.36	%
NOW, savings and MMDA deposits		396,126			5,902		1.49	%		403,563			6,665			1.65	%
Time Deposits		519,390			19,475		3.75	%		546,599			21,931			4.01	%
Short-term borrowings
Federal Home Loan bank advances		62,419			1,778		2.85	%		72,540			1,983			2.73	%
Other borrowings		40,109			2,288		5.71	%		47,746			3,293			6.90	%
Total interest-bearing liabilities		1,551,369			41,173		2.65	%		1,568,110			45,629			2.91	%

Noninterest bearing liabilities:
Noninterest bearing deposits		412,956								409,405
Other liabilities		38,373								33,286
Total noninterest bearing liabilities		451,329								442,691
Shareholders’ equity		236,770								206,622
Total liabilities and shareholders’ equity		2,239,468								2,217,423
Net interest income					80,431								77,584
Net interest spread							3.20	%								3.05	%
Net interest margin							3.87	%								3.75	%

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Loan Data (unaudited)																					Table 6
	As of Quarter Ended
	December 31, 2025					September 30, 2025					June 30, 2025					March 31, 2025					December 31, 2024
(dollars in thousands)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
Real Estate Loans
Commercial		1,113,440		57	%		1,002,192		57	%		1,016,229		57	%		1,029,444		57	%		1,006,207		55	%
Construction and land development		176,688		11	%		201,399		11	%		189,187		11	%		180,066		10	%		199,800		11	%
Residential		377,943		21	%		376,769		21	%		376,442		21	%		372,338		21	%		369,308		20	%
Other		14,824		1	%		14,831		1	%		15,290		1	%		16,406		1	%		16,816		1	%
Commercial		174,248		9	%		154,732		9	%		178,832		10	%		182,186		10	%		201,593		11	%
Consumer		15,417		1	%		16,009		1	%		14,636		1	%		14,908		1	%		15,214		1	%
Other		7,450		0	%		7,642		0	%		7,772		0	%		7,505		0	%		6,744		0	%
Total loans		1,880,010		100	%		1,773,574		100	%		1,798,388		100	%		1,802,853		100	%		1,815,682		100	%
Deferred loan fees and discounts		6,477					6,381					6,872					7,675					8,685
Allowance for credit losses		17,830					17,942					17,989					18,109					18,205
Loans, net		1,855,703					1,749,251					1,773,527					1,777,069					1,788,792

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Nonperforming Assets (unaudited)													Table 7
	As of the Quarter Ended
(dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025				December 31, 2024

Nonaccrual loans	$	6,245		$	5,390		$	5,846		$	4,808			$	5,059
Past due loans 90 days and still accruing		–			–			6			20				2
Total nonperforming loans		6,245			5,390			5,852			4,828				5,061
Other real estate owned		253			533			861			565				832
Total nonperforming assets	$	6,498		$	5,923		$	6,713		$	5,393			$	5,893

Allowance for credit losses	$	17,830		$	17,942		$	17,989		$	18,109			$	18,205
Total loans outstanding at end of period	$	1,873,533		$	1,767,193		$	1,791,516		$	1,795,178			$	1,806,997

Nonperforming loans to total loans		0.33	%		0.31	%		0.33	%		0.27	%			0.28	%
Nonperforming assets to total loans and OREO		0.35	%		0.34	%		0.37	%		0.30	%			0.33	%
Allowance for credit losses to nonperforming loans		286	%		333	%		307	%		375	%			360	%
Allowance for credit losses to total loans		0.95	%		1.02	%		1.00	%		1.01	%			1.01	%
Nonaccrual loans to total assets		0.27	%		0.24	%		0.26	%		0.21	%			0.22	%
Nonperforming assets to total assets		0.28	%		0.27	%		0.30	%		0.24	%			0.26	%

Allowance for credit losses (unaudited)																			Table 8
	As of and for the Three Months Ended															As of and for the Twelve Months Ended
(dollars in thousands)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025				December 31, 2024

Average loans outstanding	$	1,807,127		$	1,767,379		$	1,795,846		$	1,794,477		$	1,769,580		$	1,791,550			$	1,738,433
Total loans outstanding at end of period		1,873,533			1,767,193			1,791,516			1,795,178			1,806,997			1,873,533				1,806,997
Balance, beginning of period		17,942			17,989			18,109			18,205			18,291			18,205				16,635
Charge-offs:
Commercial real estate		(284	)		–			(18	)		–			–			(301	)			(49	)
Construction and land development		–			–						–			–
Residential real estate		–			–			(121	)		–			(105	)		(121	)			(52	)
Commercial		(48	)		–			–			(314	)		(5	)		(362	)			(177	)
Consumer and other		(13	)		(186	)		(34	)		(17	)		–			(251	)			(151	)
Total charge-offs		(345	)		(186	)		(173	)		(331	)		(110	)		(1,035	)			(429	)

Recoveries:
Commercial real estate		–			108			33			10			19			151				75
Construction and land development		–			–			–			202			–			202
Residential real estate		20			26			2			16			–			64				9
Commercial		7			1			3			–			–			11				54
Consumer and other		56			4			15			7			5			83				32
Total recoveries		83			139			53			235			24			511				170

Net (charge-offs) recoveries		(262	)		(47	)		(120	)		(96	)		(86	)		(524	)			(259	)
Provision for credit losses		150			–			–			–			–			150				1,829
Balance at end of period	$	17,830		$	17,942		$	17,989		$	18,109		$	18,205		$	17,831			$	18,205
Ratio of allowance to end of period loans		0.95	%		1.02	%		1.00	%		1.01	%		1.01	%		0.95	%			1.01	%
Ratio of net (charge-offs) recoveries to average loans		-0.01	%		0.00	%		-0.01	%		-0.01	%		0.00	%		-0.03	%			-0.01	%

Commercial Bancgroup, Inc.
Financial Tables
(Unaudited)

Loan Risk Ratings (unaudited)									Table 9
	As of the Quarter Ended
(dollars in thousands)	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025			December 31, 2024
Real Estate Loans
Commercial
Pass	$	1,104,532	$	999,788	$	1,012,190	$	1,023,884		$	1,002,113
Special mention		8,814		1,776		2,515		4,182			3,605
Substandard		94		628		1,524		1,378			489
Total Commercial	$	1,113,440	$	1,002,192	$	1,016,229	$	1,029,444		$	1,006,207
Construction and land development
Pass	$	176,014	$	201,363	$	189,149	$	180,066		$	199,098
Special mention		78		–		–		–			702
Substandard		596		36		38		–			–
Total Construction and land development	$	176,688	$	201,399	$	189,187	$	180,066		$	199,800
Residential
Pass	$	371,583	$	371,226	$	371,353	$	367,216		$	363,952
Special mention		833		838		849		854			865
Substandard		5,527		4,705		4,240		4,268			4,491
Total Residential	$	377,943	$	376,769	$	376,442	$	372,338		$	369,308
Other
Pass	$	14,824	$	14,831	$	15,290	$	16,406		$	16,816
Special mention		–		–				–			–
Substandard		–		–		–		–			–
Total Other	$	14,824	$	14,831	$	15,290	$	16,406		$	16,816
Commercial
Pass	$	173,324	$	153,819	$	177,969	$	181,255		$	200,976
Special mention		793		733		747		808			543
Substandard		131		180		116		123			74
Total Commercial	$	174,248	$	154,732	$	178,832	$	182,186		$	201,593
Consumer
Pass	$	15,317	$	15,974	$	14,594	$	14,866		$	15,159
Special mention		21		5		6		7			8
Substandard		79		30		36		35			47
Total Consumer	$	15,417	$	16,009	$	14,636	$	14,908		$	15,214
Other
Pass	$	7,451	$	7,642	$	7,773	$	7,506		$	6,744
Special mention		–		–				–			–
Substandard		–		–		–		–			–
Total Other	$	7,451	$	7,642	$	7,773	$	7,506		$	6,744
Total loans
Pass	$	1,863,045	$	1,764,643	$	1,788,318	$	1,791,199		$	1,804,858
Special mention		10,539		3,352		4,117		5,851			5,723
Substandard		6,427		5,579		5,954		5,804			5,101
Total Gross loans	$	1,880,011	$	1,773,574	$	1,798,389	$	1,802,854		$	1,815,682

Non-GAAP Financial Measures

This press release contains certain financial measure(s) that are not financial measure(s) recognized under generally accepted accounting principles in the U.S. (“GAAP”) and, therefore, are considered non-GAAP financial measure(s) and should be read along with the accompanying reconciliation of non-GAAP financial measure(s) to GAAP financial measure(s). We use non-GAAP financial measures, certain of which are included in this press release, both to explain our operating results to shareholders and the investment community and to evaluate, analyze, and manage our business. We believe that these non-GAAP financial measures provide a better understanding of ongoing operations, enhance the comparability of results across periods, and enable investors to better understand our performance. However, non-GAAP financial measures should not be considered in isolation and should be considered supplemental in nature and not as a substitute for or superior to the most directly comparable or other financial measures calculated in accordance with GAAP. Additionally, the manner in which the non-GAAP financial measure(s) contained in this press release are calculated may differ from the manner in which measures with similar names are calculated by other companies. You should understand how other companies calculate their financial measures similar to, or with names similar to, the non-GAAP financial measure(s) contained in this press release when comparing such financial measures.

The non-GAAP financial measures in this press release include the following:

Core deposits. We calculate core deposits by excluding jumbo time deposits (deposits greater than or equal to $250,000) from total deposits.
Core net income. We define core net income as net income plus acquisition related expenses, net of the related tax effect of acquisition related expenses.
Core diluted earnings per share. We define core diluted earnings per share as core net income divided by diluted weighted average shares outstanding.
Core ROAA. We define core ROAA as core net income divided by average assets, with average assets based upon the average daily balance of total assets in each year.
Core return on average tangible common equity. We define core return on average tangible common equity as core net income divided by total average shareholders’ equity less average intangible assets (goodwill and core deposit intangibles).
Core efficiency ratio. We define core efficiency ratio as operating revenue (net interest income, plus total noninterest income, divided by noninterest expenses (less acquisition related expenses). This ratio is an indicator used by our management to assess operating efficiencies and is intended to demonstrate how efficiently our management is controlling expenses relative to generating revenues on our core activities.
Efficiency Ratio. We define efficiency ratio as operating expenses divided by fee income plus tax equivalent net interest income. This metric indicates how effectively the Company manages its expenses relative to its income, providing insights into cost management and profitability.
Pre-tax, pre-provision ROAA. We define pre-tax, pre-provision ROAA as pre-tax, pre-provision net income divided by average assets calculated based upon the average daily balance of total assets in each year.
Tangible assets. We define tangible assets as total assets less goodwill and other intangible assets.
Tangible book value per share. We define tangible book value per share as our tangible common equity, which is shareholders’ equity reduced by goodwill and other intangible assets, divided by diluted weighted average shares outstanding.

Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our performance. In addition to the foregoing, our management believes that the “core” metrics described above assist users of the Company’s financial statements with their financial analysis period-over-period as they exclude certain non-recurring items. While we believe that these non-GAAP financial measures are useful in evaluating our performance, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate these non-GAAP financial measures may differ from that of other companies reporting measures with similar names.

The following table provides a reconciliation of the above non-GAAP financial measures to their most directly comparable financial measure presented in accordance with GAAP.

Non-GAAP Reconciliations (unaudited)																			Table 10
	As of and for the Three Months Ended															As of and for the Twelve Months Ended
(dollars in thousands, except per share data)	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			December 31, 2025				December 31, 2024

Pre-Tax Pre-Provision Net Income
Pre-tax income	$	12,705		$	12,296		$	11,528		$	11,202		$	8,846		$	47,731			$	40,572
Add: provision for loan and lease losses		150			–			–			–			5			150				1,829
Pre-tax pre-provision net income	$	12,855		$	12,296		$	11,528		$	11,202		$	8,851		$	47,881			$	42,401
Tangible Common Equity:
Shareholders’ equity	$	285,090		$	245,153		$	235,268		$	226,179		$	220,256			285,090				220,256
Less: non controlling interest											–										–
Less: goodwill		8,511			8,511			8,511			8,511			8,514			8,511				8,514
Less: core deposit intangible (net of tax benefit)		3,164			3,448			3,744			4,035			4,331			3,164				4,331
Tangible common equity	$	273,415		$	233,194		$	223,013		$	213,633		$	207,411		$	273,415			$	207,411
Pre-Tax Pre-Provision Return on Average Assets:
Total average assets	$	2,249,282		$	2,170,869		$	2,248,134		$	2,289,582		$	2,255,565		$	2,239,468			$	2,217,423
Pre-tax pre-provision net income		12,855			12,296			11,528			11,202			8,851			47,881				42,401
Pre-tax pre-provision return on average assets		2.29	%		2.27	%		2.05	%		1.96	%		1.57	%		2.14	%			1.91	%
Return on Average Tangible Common Equity:
Total average shareholders’ equity	$	259,784		$	239,473		$	227,883		$	219,940		$	216,140		$	236,770			$	206,622
Less: average intangible assets (net of tax benefit)		11,767			11,980			11,997			12,310			12,676		$	12,014				13,497
Less: average non controlling interest		–			–			–			–			–			–				2,701
Average tangible equity		248,017			227,493			215,886			207,630			203,464			224,757				190,424
Net income to shareholders		9,913			9,467			8,870			8,692			5,611			36,942				31,410
Return on average tangible equity		15.99	%		16.65	%		16.43	%		16.75	%		11.03	%		16.44	%			16.49	%
Tangible Book Value per Common Share, Reported:
Tangible common equity	$	273,415		$	233,194		$	223,013		$	213,633		$	207,411		$	273,415			$	207,411
Shares of common stock outstanding		13,697,987			12,239,644			12,239,644			12,239,644			12,113,114			13,697,987				12,113,114
Tangible book value per share, reported	$	19.96		$	19.05		$	18.22		$	17.45		$	17.12		$	19.96			$	17.12
Tangible Common Equity to Tangible Assets:
Tangible common equity	$	273,415		$	233,194		$	223,013		$	213,633		$	207,411		$	273,415			$	207,411
Total assets		2,291,112			2,214,408			2,262,511			2,266,878			2,301,211			2,291,112				2,301,211
Less: intangible assets		12,767			13,149			13,546			13,938			14,339			12,767				14,339
Tangible assets		2,278,345			2,201,258			2,248,965			2,252,940			2,286,872			2,278,345				2,286,872
Tangible common equity to tangible assets		12.00	%		10.59	%		9.92	%		9.48	%		9.07	%		12.00	%			9.07	%
Core Deposits:
Total Deposits	$	1,815,734		$	1,780,634		$	1,851,248		$	1,902,206		$	1,938,597		$	1,815,734				1,938,597
Less: Time deposits equal to or greater than $250,000		102,294			100,743			97,209			97,537			94,567			102,294				94,567
Less: Brokered deposits		47,970			47,970			125,223			145,375			174,918			47,970				174,918
Core deposits	$	1,665,470		$	1,631,921		$	1,628,816		$	1,659,294		$	1,669,112		$	1,665,470			$	1,669,112
Core Net Income:
Net income	$	9,913		$	9,467		$	8,870		$	8,692		$	5,611		$	36,942				31,410
Add: merger expenses from AB&T acquisition		–			–			302			7			131			309				2,788
Less: tax effect		–			–			(76	)		(2	)		(33	)		(78	)			(697	)
Core net income	$	9,913		$	9,467		$	9,096		$	8,697		$	5,709		$	37,173				33,501
Core Earnings per Share:
Core net income	$	9,913		$	9,467		$	9,096		$	8,697		$	5,709		$	37,173			$	33,501
Average shares outstanding		13,835,816			12,188,624			12,137,013			12,137,013			12,301,998			12,574,617				12,187,788
Core earnings per share	$	0.72		$	0.78		$	0.75		$	0.72		$	0.46		$	2.96			$	2.75
Core Return on Average Assets:
Core net income	$	9,913		$	9,467		$	9,096		$	8,697		$	5,709		$	37,173			$	33,501
Average assets		2,249,282			2,170,869			2,248,134			2,289,582			2,255,565			2,239,468				2,217,423
Core return on average assets		1.76	%		1.74	%		1.62	%		1.52	%		1.01	%		1.66	%			1.51	%
Core Return on Average Common Tangible Equity:
Average tangible common equity	$	248,017		$	227,493		$	215,886		$	207,630		$	203,464		$	224,757			$	190,424
Core net income		9,913			9,467			9,096			8,697			5,709			37,173				33,501
Core return on average tangible common equity		15.99	%		16.65	%		16.85	%		16.75	%		11.22	%		16.54	%			17.59	%
Core Efficiency Ratio:
Add: net interest income	$	20,810		$	20,222		$	20,059		$	19,340		$	19,767		$	80,431			$	77,584
Add: non interest income		2,666			2,626			2,194			2,443			3,000			9,929				10,878
Operating revenue	$	23,476		$	22,848		$	22,253		$	21,783		$	22,767		$	90,360				88,462
Total noninterest expenses		10,621			10,552			10,725			10,581			13,916			42,479				46,061
Less: merger expenses from AB&T acquisition		–			–			302			7			131			309				2,788
Core noninterest expenses		10,621			10,552			10,423			10,574			13,785			42,170				43,273
Core efficiency ratio		45.24	%		46.18	%		46.84	%		48.54	%		60.55	%		46.67	%			48.92	%

Contacts

Philip J. Metheny
Sr. Executive Vice President, Chief Financial Officer
Commercial Bancgroup, Inc.
ir@cbtn.com
423-869-5151 Ext. 3307

Roger Mobley
Executive Vice President, Chief Financial Officer
Commercial Bank
ir@cbtn.com
704-648-0185 Ext. 4118

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. The statements in this press release that are not purely historical facts are forward-looking statements. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. You should not place undue reliance on these forward-looking statements as actual future results may differ materially from those expressed or implied by any forward-looking statement. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those expressed in any forward-looking statements, including but not limited to: (1) business and economic conditions nationally, regionally and in our target markets, particularly in Kentucky, North Carolina and Tennessee and the particular geographic areas in which we operate; (2) the level of, or changes in the level of, interest rates and inflation, including the effects thereof on our earnings and financial condition and the market value of our investment securities and loan portfolios; (3) the concentration of our loan portfolio in real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate; (4) the concentration of our business within our geographic areas of operation in Kentucky, North Carolina and Tennessee and neighboring markets; (5) credit and lending risks associated with our commercial real estate, commercial, and construction and land development loan portfolios; (6) risks associated with our focus on lending to small and medium-sized businesses; (7) our ability to maintain important deposit customer relationships, maintain our reputation or otherwise avoid liquidity risks; (8) changes in demand for our products and services; (9) the failure of assumptions and estimates underlying the establishment of allowances for possible credit losses and other asset impairments, losses, valuations of assets and liabilities and other estimates; (10) the sufficiency of our capital, including sources of such capital and the extent to which capital may be used or required; (11) our inability to secure a “satisfactory” rating under the Community Reinvestment Act; (12) the risk that our cost of funding could increase in the event we are unable to continue to attract stable, low-cost deposits and reduce our cost of deposits; (13) our inability to raise necessary capital to fund our growth strategy and operations or to meet increased required minimum regulatory capital levels; (14) our ability to execute and prudently manage our growth and execute our business strategy, including expansionary activities; (15) the composition of and changes in our management team and our ability to attract, incentivize and retain key personnel; (16) the effects of competition from a wide variety of local, regional, national and other providers of financial, investment, trust and other wealth management services and insurance services, including the disruptive effects of financial technology and other competitors who are not subject to the same regulations as the Company and the Bank; (17) the deterioration of our asset quality or the value of collateral securing loans; (18) changes in accounting standards; (19) the effectiveness of our risk management framework, including internal controls; (20) severe weather, natural disasters, pandemics, epidemics, acts of war, terrorism, or other external events, such as the transition risk associated with climate change, and other matters beyond our control; (21) changes in technology or products that may be more difficult, costly, or less effective than anticipated; (22) the risks of acquisitions and other expansionary activities, including without limitation our ability to identify and consummate transactions with potential future acquisition candidates, the time and costs associated with pursuing such transactions, our ability to successfully integrate operations as part of such transactions and our ability, and possible failures, to achieve expected gains, revenue growth, expense savings and/or other synergies from such transactions; (23) our ability to maintain our historical rate of growth; (24) failure to keep pace with technological change or difficulties when implementing new technologies; (25) systems failures or interruptions involving our risk management framework, our information technology and telecommunications systems or fourth-party service providers; (26) our ability to identify and address unauthorized data access, cyber-crime and other threats to data security and customer privacy; (27) our compliance with governmental and regulatory requirements, including the Bank Holding Company Act of 1956, as amended, and other laws relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with mortgage origination, sale and servicing operations; (28) compliance with the Bank Secrecy Act of 1970, Office of Foreign Assets Control rules and anti-money laundering laws and regulations; (29) governmental monetary and fiscal policies; (30) changes in laws, rules, or regulations, or interpretations thereof, or policies relating to financial institutions or accounting, tax, trade, monetary or fiscal matters; (31) our ability to receive dividends from the Bank and satisfy our obligations as they become due; (32) the institution and outcome of litigation and other legal proceedings against us or to which we become subject; (33) the limited experience of our management team in managing and operating a public company; (34) the incremental costs of operating as a public company; (35) our ability to meet our obligations as a public company, including our obligations under Section 404 of the Sarbanes-Oxley Act of 2002; and (36) other risks and factors described under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Registration Statement on Form S-1/A (Registration No. 333-289862) filed with the U.S. Securities and Exchange Commission on September 22, 2025. Commercial undertakes no obligation to update these forward-looking statements, as a result of changes in assumptions, new information, or otherwise, after the date of this press release, except as required by law.

SOURCE: Commercial Bancgroup, Inc.

View the original press release on ACCESS Newswire

RBB Bancorp Reports Fourth Quarter and Fiscal Year 2025 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

RBB Bancorp on February 5, 2026

LOS ANGELES, Jan. 26, 2026 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Highlights

Net income totaled $10.2 million, or $0.59 diluted earnings per share
Return on average assets of 0.96%, compared to 0.97% for the quarter ended September 30, 2025
Net interest margin increased to 2.99%, from 2.98% for the quarter ended September 30, 2025
Loans held for investment growth of $11.7 million, or 1.4% annualized
Classified and criticized loans decreased $31.8 million, or 25.2%, to $94.4 million at December 31, 2025, compared to prior quarter end
Nonperforming assets decreased $852,000, or 1.6%, to $53.5 million at December 31, 2025, compared to prior quarter end
Book value and tangible book value per share⁽¹⁾ increased to $30.69 and $26.42 at December 31, 2025, up from $30.18 and $25.89 at September 30, 2025

Fiscal 2025 Highlights

Net income totaled $31.9 million, or $1.83 diluted earnings per share, increased 19.8% and 24.5%, respectively, compared to fiscal 2024
Pre-tax pre-provision income (1) totaled $52.5 million, a 15.3% increase compared to fiscal 2024
Loans held for investment growth of $261.1 million, or 8.6%
Classified and criticized loans decreased $71.3 million, or 43.0%, to $94.4 million at December 31, 2025, compared to year-end 2024
Nonperforming assets decreased $27.6 million, or 34.0%, to $53.5 million at December 31, 2025, compared to year-end 2024
Returned $25.3 million to shareholders through quarterly dividends and common stock repurchases, while increasing book value and tangible book value per share (1) 7.1% and 7.8% compared to prior year end

The Company reported net income of $10.2 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2025, compared to net income of $10.1 million, or $0.59 diluted earnings per share, for the quarter ended September 30, 2025. Net income for the year ended December 31, 2025 totaled $31.9 million, or $1.83 diluted earnings per share, compared to net income of $26.7 million, or $1.47 diluted earnings per share, for the year ended December 31, 2024. Net income for the year ended December 31, 2025 included income from an Employee Retention Credit (“ERC”) of $5.2 million (pre-tax), which was included in other income, offset partially by professional and advisory costs associated with filing and determining eligibility for the ERC totaling $1.2 million (pre-tax).

“The fourth quarter was a strong finish to a year with solid loan growth, improving performance ratios, and normalizing credit,” said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. “2025 net interest income increased 13% year-over-year and drove return on assets, net interest margin, and earnings per share for the year. I am grateful to the entire RBB team for the work they have done to return the Bank to its historical performance. We continue to work on resolving our remaining non-performing assets and remain optimistic that credit will continue to improve in future quarters.”

(1)		Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Net Interest Income and Net Interest Margin

Net interest income was $29.5 million for the fourth quarter of 2025, compared to $29.3 million for the third quarter of 2025. The $231,000 increase was due to a $430,000 decrease in interest expense, offset by a $199,000 decrease in interest income. The decrease in interest expense was due mainly to a $496,000 decrease in interest on Federal Home Loan Bank (“FHLB”) advances as a result of lower average balances while the cost remained similar. The decrease in interest income was due to the combination of a $565,000 decrease in interest on cash and investment securities, offset by a $353,000 increase in loan interest income as average loans increased.

The net interest margin (“NIM”) increased 1 basis point to 2.99% for the fourth quarter of 2025 from 2.98% for the third quarter of 2025. The NIM increase included an 8 basis point decrease in the overall cost of funds combined with a 7 basis point decrease in the yield on average interest-earning assets as shorter term market interest rates moved lower. With three rate cuts in the last four months of 2025, the average overnight Federal Funds Rate was 3.90% for the fourth quarter of 2025 compared to 4.30% for the third quarter of 2025. The yield on average interest-earning assets decreased to 5.78% for the fourth quarter of 2025 from 5.85% for the third quarter of 2025 due mostly to the 5 basis point decrease of the yield on average loans to 6.07%. Average loans represented 84.0% of average interest-earning assets in the fourth quarter of 2025, as compared to 83.3% in the third quarter of 2025.

The average total cost of funds decreased 8 basis points to 3.04% for the fourth quarter of 2025 from 3.12% for the third quarter of 2025, due mostly to a 7 basis point decrease in the overall cost of deposits to 2.96% for the fourth quarter of 2025. The total cost of deposits decreased due to a 12 basis point decrease in the cost of average interest-bearing deposits to 3.51%, offset by the impact of the mix of average total deposits. Average noninterest-bearing deposits represented 15.9% of average total deposits for the fourth quarter of 2025 compared to 16.6% for the prior quarter. In addition, the overall funding mix for the fourth quarter of 2025 included higher average total deposits as maturing FHLB advances were replaced with retail and wholesale deposits. Average total deposits represented 92.7% of average total funding for the fourth quarter of 2025 compared to 91.0% for the prior quarter. The spot rate for total deposits was 2.90% at December 31, 2025.

Net interest income was $112.3 million for the year ended December 31, 2025, compared to $99.4 million for the year ended December 31, 2024. The $12.9 million increase was due to an $8.5 million decrease in interest expense and a $4.5 million increase in interest income. The increase in interest income was due mainly to a $9.3 million increase in interest and fees on loans and a $2.8 million increase in interest on investment securities, offset by a $7.5 million decrease in interest on cash balances. The decrease in interest expense was due mainly to an $11.3 million decrease in interest on deposits, offset partially by a $3.0 million increase in interest on FHLB advances.

NIM was 2.95% for fiscal 2025, an increase of 25 basis points from 2.70% for fiscal 2024. The NIM expansion included a 38 basis point decrease in the overall cost of funds, offset by an 8 basis point decrease in the yield on average interest-earning assets. With three rate cuts in the last four months of 2025, the average overnight Fed funds rate was 4.21% for fiscal 2025 compared to 5.14% for fiscal 2024. The yield on average interest-earning assets decreased 8 basis points to 5.80% for fiscal 2025 from 5.88% for fiscal 2024. Total net loan growth of $261.1 million during 2025 improved the earning-asset mix as average loans represented 83.8% of average interest-earning assets during 2025, up from 82.6% during 2024.

The average total cost of funds decreased 38 basis points to 3.11% for fiscal 2025 from 3.49% for fiscal 2024, due mostly to a 50 basis point decrease in the overall cost of deposits to 3.04%, offset partially by a 94 basis point increase in the cost of average total borrowings to 3.94%, while the overall average funding mix remained relatively unchanged year over year. The cost of total deposits decreased due to a 64 basis point decrease in the cost of average interest-bearing deposits to 3.64%, offset by the impact of the mix of average total deposits. Average noninterest-bearing deposits represented 16.6% of average total deposits for 2025 compared to 17.3% for 2024.

Provision for Credit Losses

The provision for credit losses was $600,000 for the fourth quarter of 2025 compared to $625,000 for the third quarter of 2025. The fourth quarter 2025 provision for credit losses reflected a provision for loan losses of $620,000 and a negative provision for unfunded commitments of $20,000 due to a lower volume of unfunded commitments. The fourth quarter provision for loan losses was due mainly to charge-offs and loan growth during the quarter, partially offset by positive changes in the economic forecast, and credit quality metrics, including changes in loans 30-89 days past due, nonperforming loans, special mention and substandard loans during the period. Net charge-offs totaled $1.6 million in the fourth quarter of 2025, of which $1.4 million related to an $8.4 million substandard commercial real estate loan that was paid off through a short sale of the underlying collateral. Net charge-offs on an annualized basis represented 0.20% of average loans for the fourth quarter of 2025 compared to 0.84% for the third quarter of 2025.

The provision for credit losses was $10.4 million for the year ended December 31, 2025 compared to $9.9 million for the year ended December 31, 2024. The 2025 provision for credit losses reflected a provision for loan losses of $10.6 million and a negative provision for unfunded commitments of $245,000 due to a lower volume of unfunded commitments. The 2025 provision for loan losses was due to 8.6% annual loan growth in 2025 and the resolution of certain nonperforming assets resulting in charge-offs during the year. The provision also took into consideration factors such as changes in the outlook for economic conditions and market interest rates, and changes in credit quality metrics. Net charge-offs totaled $14.4 million for fiscal 2025, compared to $3.9 million for fiscal 2024. Net charge-offs represented 0.45% of average loans for fiscal 2025 compared to 0.13% for fiscal 2024.

Noninterest Income

Noninterest income for the fourth quarter of 2025 was $2.8 million, a decrease of $486,000 from $3.3 million for the third quarter of 2025. The decrease in noninterest income was mainly due to lower income from equity investments of $609,000, offset partially by higher gain on sale of loans of $197,000 in the fourth quarter of 2025. The sale of $22.0 million of mortgage loans and $2.9 million of Small Business Administration (“SBA”) loans resulted in gains of $457,000 for the fourth quarter of 2025 compared to the sale of mortgage loans of $14.2 million and SBA loans of $1.9 million for gains of $260,000 for the third quarter of 2025.

Noninterest income for fiscal 2025 was $16.9 million, an increase of $1.5 million from $15.3 million for fiscal 2024. The increase was mostly due to 2025 including other income of $5.2 million for the receipt of ERC funds from the IRS. There were no such ERC amounts received or associated advisory costs recognized during 2024. This increase was offset in part by lower recoveries on a fully charged-off loan relationship of $2.5 million, lower gain on other real estate owned (“OREO”) of $1.0 million, and lower gain on sale of loans of $430,000. Recoveries on this fully charged-off loan relationship totaled $365,000 for 2025, down from $2.9 million for 2024. The sale of $58.1 million of mortgage loans and $10.8 million of SBA loans resulted in gains of $1.2 million for fiscal 2025 compared to the sale of mortgage loans of $47.7 million and SBA loans of $13.8 million for gains of $1.6 million for fiscal 2024.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 was $19.0 million, an increase of $282,000 from $18.7 million for the third quarter of 2025. The increase was mainly due to higher legal and professional expenses of $151,000 and higher salaries and employee benefits of $133,000. The efficiency ratio was 58.69% for the fourth quarter of 2025, compared to 57.36% for the third quarter of 2025.

Noninterest expense for fiscal 2025 was $76.7 million, an increase of $7.5 million from $69.2 million for fiscal 2024. The increase included higher salaries and employee benefits of $3.7 million, higher legal and professional expenses of $3.0 million, of which $1.2 million related to the ERC advisory costs, and higher data processing costs of $1.0 million. The increase in compensation costs was due to the impact of raises, higher incentives due to higher production, higher health insurance premiums, and executive management transition costs. The efficiency ratio was 59.36% for the year ended December 31, 2025, compared to 60.30% for the year ended December 31, 2024.

Income Taxes

The effective tax rate was 20.2% for the fourth quarter of 2025 and 23.5% for the third quarter of 2025. The decrease in the effective tax rate for the fourth quarter of 2025 was due mostly to a reduction in the multi-state blended tax rate and benefits from state tax planning.

The effective tax rate was 24.2% for the year ended December 31, 2025 and 25.3% for the year ended December 31, 2024. The decrease in the effective tax rate for 2025 was due largely to a change in California tax law (Senate Bill 132), which changes the way banks and financial institutions apportion income for California tax purposes. This reduced the Company’s blended state tax rate. In addition, other state tax planning favorably decreased the Company’s tax rate in 2025.

Balance Sheet

At December 31, 2025, total assets were $4.2 billion, a $161,000 decrease compared to total assets at September 30, 2025, and a $215.8 million, or 5.4%, increase compared to total assets of $4.0 billion at December 31, 2024.

Loan and Securities Portfolio

Loans held for investment (“HFI”) totaled $3.3 billion as of December 31, 2025, an increase of $11.7 million, or 1.4% annualized, compared to September 30, 2025 and an increase of $261.1 million, or 8.6%, compared to December 31, 2024. Net loan growth for the fourth quarter of 2025 included $145.0 million in originations with an average yield of 6.38%, offset mostly by payoffs/paydowns of $149.3 million, loans sold of $26.4 million, and charge-offs of $1.6 million. Net loan growth for 2025 included $712.7 million in originations and advances on existing loans of $135.9 million, offset by payoffs/paydowns of $499.6 million, loan sales of $74.0 million, and charge-offs of $14.7 million. The loan to deposit ratio was 99.0% at December 31, 2025, compared to 98.1% at September 30, 2025 and 99.4% at December 31, 2024.

As of December 31, 2025, available for sale securities (“AFS”) totaled $407.2 million, a decrease of $3.4 million from September 30, 2025, primarily related to maturities and paydowns of $49.0 million, offset by purchases of $44.0 million during the fourth quarter of 2025. As of December 31, 2025, net unrealized pre-tax losses totaled $18.9 million, a $1.6 million decrease when compared to net unrealized pre-tax losses of $20.5 million as of September 30, 2025.

Deposits

Total deposits were $3.4 billion as of December 31, 2025, a decrease of $16.1 million, or 1.9% annualized, compared to September 30, 2025 and an increase of $266.6 million, or 8.6%, compared to December 31, 2024. The decrease in total deposits during the fourth quarter of 2025 was due to a $42.4 million decrease in wholesale deposits, offset by a $26.3 million increase in retail deposits. The increase in retail deposits included a shift to non-maturity deposits from traditional time deposits as interest-bearing non-maturity deposits increased $234.6 million, while retail time deposits and noninterest-bearing deposits decreased $184.4 million and $24.0 million, respectively.

The increase in total deposits during 2025 was due to a $188.4 million increase in retail deposits and $78.2 million increase in wholesale deposits, in support of loan growth and lowering reliance on maturing FHLB advances. The 2025 retail deposit growth included a shift to non-maturity deposits from traditional time deposits as interest-bearing non-maturity deposits increased $293.3 million, while retail time deposits and noninterest-bearing deposits decreased $68.4 million and $36.5 million, respectively. Noninterest-bearing deposits totaled $526.5 million, or 15.7% of total deposits, at December 31, 2025 compared to $550.5 million, or 16.4% of total deposits, at September 30, 2025, and $563.0 million, or 18.3% of total deposits, at December 31, 2024.

Credit Quality

Nonperforming assets totaled $53.5 million, or 1.27% of total assets, at December 31, 2025, down from $54.3 million, or 1.29% of total assets, at September 30, 2025, and down from $81.0 million, or 2.03% of total assets, at December 31, 2024. Nonperforming assets included the same $8.8 million of OREO (included in “accrued interest and other assets”) at December 31, 2025 and September 30, 2025, and there was no OREO outstanding at December 31, 2024.

Nonperforming loans (“NPLs”) totaled $44.6 million at December 31, 2025, down from $45.5 million at September 30, 2025 and down from $81.0 million at December 31, 2024. The $852,000 decrease in NPLs during the fourth quarter of 2025 was due to $1.1 million in payoffs and paydowns and $186,000 in net charge-offs, partially offset by additions of $408,000. The $36.4 million decrease in NPLs during 2025 was due to the Company’s focus on resolving problem loans. The decrease in NPLs included $15.3 million in payoffs and paydowns, $7.0 million in loan sales, $6.0 million in upgrades and internal refinance, $5.3 million in net loans which migrated to and remain in OREO, $1.3 million in charge-offs of fully resolved loans, and $10.4 million in partial charge-offs for outstanding NPLs. These decreases were offset by additions to NPLs of $8.9 million.

Substandard loans, also referred to as classified loans, totaled $75.2 million at December 31, 2025, down from $76.9 million at September 30, 2025 and $100.3 million at December 31, 2024. The $1.7 million decrease in substandard loans during the fourth quarter of 2025 was primarily due to payoffs and paydowns totaling $9.1 million, charge-offs of $1.6 million, and upgrades to pass-rated loans of $1.2 million, partially offset by downgrades to substandard totaling $10.1 million.

The $25.2 million decrease in substandard loans during fiscal 2025 was primarily due to payoffs and paydowns totaling $12.1 million, loans which migrated to OREO totaling $12.9 million, charge-offs of $11.7 million, loan sales of $7.6 million, and upgrades to pass-rated loans and internal refinances of $7.3 million, partially offset by downgrades to substandard loans totaling $26.4 million. Of the total substandard loans outstanding at December 31, 2025, there were $30.5 million, or 40% of such loans, on accrual status.

Special mention loans, also referred to as criticized loans, totaled $19.2 million, or 0.58% of total loans, at December 31, 2025, down from $49.3 million, or 1.49% of total loans, at September 30, 2025, and down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $30.1 million decrease for the fourth quarter of 2025 was primarily due to upgrades of $21.7 million to pass-rated loans, downgrades to substandard-rated loans of $9.1 million, and payoffs and paydowns of $3.4 million, partially offset by downgrades to special mention of $4.1 million. The $46.1 million decrease during fiscal 2025 was primarily due to upgrades of $45.9 million to pass-rated loans, downgrades to substandard-rated loans of $3.9 million, payoffs and paydowns of $7.9 million, and charge-offs of $1.3 million, partially offset by downgrades to special mention of $12.9 million. As of December 31, 2025, all special mention loans were paying current.

30-89 day delinquent loans, excluding nonperforming loans, totaled $8.8 million, or 0.27% of total loans, at December 31, 2025, up from $6.5 million, or 0.20% of total loans, at September 30, 2025, and down from $22.1 million, or 0.72% of total loans at December 31, 2024. The $2.3 million increase for the fourth quarter of 2025 was mainly due to $5.9 million in new delinquent loans, offset by $3.5 million in loans returning to current status. The $13.3 million decrease during 2025 was mainly due to $14.6 million in loans returning to current status, offset by $7.5 million in new delinquent loans.

As of December 31, 2025, the allowance for credit losses totaled $44.4 million and was comprised of an allowance for loan losses of $43.9 million and a reserve for unfunded commitments of $484,000 (included in “accrued interest and other liabilities”). This compares to the allowance for credit losses of $45.4 million, comprised of an allowance for loan losses of $44.9 million and a reserve for unfunded commitments of $504,000 at September 30, 2025. The $1.0 million decrease in the allowance for credit losses for the fourth quarter of 2025 was due to net charge-offs of $1.6 million, offset by a $600,000 provision for credit losses. The allowance for loan losses as a percentage of loans HFI totaled 1.32% at December 31, 2025, compared to 1.36% at September 30, 2025. The allowance for loan losses as a percentage of nonperforming loans HFI was 98.3% at December 31, 2025, down from 98.7% at September 30, 2025.

	For the Three Months Ended December 31, 2025									For the Year Ended December 31, 2025
*(dollars in thousands)*	Allowance for loan losses			Reserve for unfunded loan commitments			Allowance for credit losses			Allowance for loan losses			Reserve for unfunded loan commitments			Allowance for credit losses
Beginning balance	$	44,892		$	504		$	45,396		$	47,729		$	729		$	48,458
Provision for (reversal of) credit losses		620			(20	)		600			10,603			(245	)		10,358
Less loans charged-off		(1,628	)		—			(1,628	)		(14,712	)		—			(14,712	)
Recoveries on loans charged-off		4			—			4			268			—			268
Ending balance	$	43,888		$	484		$	44,372		$	43,888		$	484		$	44,372

Shareholders’ Equity

At December 31, 2025, total shareholders’ equity was $523.4 million, a $9.1 million increase compared to September 30, 2025, and a $15.5 million increase compared to December 31, 2024. The increase in shareholders’ equity for the fourth quarter of 2025 was due mostly to net income of $10.2 million and lower net unrealized losses on AFS securities of $1.1 million, offset by common stock cash dividends paid of $2.8 million.

The increase in shareholders’ equity during 2025 was due to net income of $31.9 million, lower net unrealized losses on AFS securities of $6.9 million, and equity compensation activity of $1.9 million, offset by common stock repurchases totaling $14.0 million and common stock cash dividends paid of $11.3 million. Book value per share and tangible book value per share⁽¹⁾increased to $30.69 and $26.42 at December 31, 2025, up from $30.18 and $25.89 at September 30, 2025 and up from $28.66 and $24.51 at December 31, 2024, respectively.

Dividend Announcement

The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on February 13, 2026 to shareholders of record on January 30, 2026.

Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
lhopkins@rbbusa.com

(1)		Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of December 31, 2025, the Company had total assets of $4.2 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, January 27, 2026, to discuss the Company’s fourth quarter and fiscal year 2025 financial results.

To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 762691, conference ID RBBQ425. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 53450, approximately one hour after the conclusion of the call and will remain available through February 10, 2026.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; federal government shutdowns and uncertainty regarding the federal government’s debt limit; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.


RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2025			2025			2025			2025			2024
Assets
Cash and due from banks	$	27,086		$	24,251		$	27,338		$	25,315		$	27,747
Interest-earning deposits with financial institutions		185,231			210,679			164,514			213,508			229,998
Cash and cash equivalents		212,317			234,930			191,852			238,823			257,745
Interest-earning time deposits with financial institutions		600			600			600			600			600
Investment securities available for sale		407,204			410,631			413,142			378,188			420,190
Investment securities held to maturity		4,184			4,185			4,186			5,188			5,191
Loans held for sale		2,067			756			—			655			11,250
Loans held for investment		3,314,301			3,302,577			3,234,695			3,143,063			3,053,230
Allowance for loan losses		(43,888	)		(44,892	)		(51,014	)		(51,932	)		(47,729	)
Net loans held for investment		3,270,413			3,257,685			3,183,681			3,091,131			3,005,501
Premises and equipment, net		23,540			23,851			23,945			24,308			24,601
Federal Home Loan Bank (FHLB) stock		15,000			15,000			15,000			15,000			15,000
Cash surrender value of bank owned life insurance		61,972			61,538			61,111			60,699			60,296
Goodwill		71,498			71,498			71,498			71,498			71,498
Servicing assets		6,041			6,252			6,482			6,766			6,985
Core deposit intangibles		1,338			1,495			1,667			1,839			2,011
Right-of-use assets		23,026			24,305			25,554			26,779			28,048
Accrued interest and other assets		109,094			95,729			91,322			87,926			83,561
Total assets	$	4,208,294		$	4,208,455		$	4,090,040		$	4,009,400		$	3,992,477
Liabilities and shareholders’ equity
Deposits:
Noninterest-bearing demand	$	526,538		$	550,488		$	543,885		$	528,205		$	563,012
Savings, NOW and money market accounts		956,299			721,697			691,679			721,216			663,034
Time deposits, $250,000 and under		974,670			1,119,258			1,010,674			1,000,106			1,007,452
Time deposits, greater than $250,000		892,891			975,054			941,993			893,101			850,291
Total deposits		3,350,398			3,366,497			3,188,231			3,142,628			3,083,789
FHLB advances		130,000			130,000			180,000			160,000			200,000
Long-term debt, net of issuance costs		119,911			119,815			119,720			119,624			119,529
Subordinated debentures		15,375			15,320			15,265			15,211			15,156
Lease liabilities – operating leases		24,800			26,066			27,294			28,483			29,705
Accrued interest and other liabilities		44,400			36,422			41,877			33,148			36,421
Total liabilities		3,684,884			3,694,120			3,572,387			3,499,094			3,484,600
Shareholders’ equity:
Common stock		250,694			250,362			259,863			260,284			259,957
Additional paid-in capital		3,941			3,734			3,579			3,360			3,645
Retained earnings		282,024			274,608			270,152			263,885			264,460
Non-controlling interest		72			72			72			72			72
Accumulated other comprehensive loss, net		(13,321	)		(14,441	)		(16,013	)		(17,295	)		(20,257	)
Total shareholders’ equity		523,410			514,335			517,653			510,306			507,877
Total liabilities and shareholders’ equity	$	4,208,294		$	4,208,455		$	4,090,040		$	4,009,400		$	3,992,477


RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share data)

	For the Three Months Ended						For the Twelve Months Ended
	December 31, 2025		September 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Interest and dividend income:
Interest and fees on loans	$	50,447	$	50,094	$	46,374	$	193,849	$	184,567
Interest on interest-earning deposits		2,027		2,140		3,641		7,931		15,422
Interest on investment securities		4,140		4,592		3,962		17,081		14,331
Dividend income on FHLB stock		331		327		330		1,312		1,314
Interest on federal funds sold and other		248		239		248		953		1,027
Total interest and dividend income		57,193		57,392		54,555		221,126		216,661
Interest expense:
Interest on savings deposits, NOW and money market accounts		5,316		4,674		4,671		19,025		19,295
Interest on time deposits		19,588		20,152		21,361		78,074		89,086
Interest on long-term debt and subordinated debentures		1,623		1,635		1,660		6,524		6,699
Interest on FHLB advances		1,158		1,654		886		5,221		2,217
Total interest expense		27,685		28,115		28,578		108,844		117,297
Net interest income before provision for credit losses		29,508		29,277		25,977		112,282		99,364
Provision for credit losses		600		625		6,000		10,358		9,857
Net interest income after provision for credit losses		28,908		28,652		19,977		101,924		89,507
Noninterest income:
Service charges and fees		1,011		1,099		988		4,187		4,115
Gain on sale of loans		457		260		376		1,156		1,586
Loan servicing fees, net of amortization		556		564		492		2,249		2,265
Increase in cash surrender value of life insurance		435		427		407		1,676		1,577
Gain on OREO		—		—		—		—		1,016
Other income		348		943		466		7,605		4,776
Total noninterest income		2,807		3,293		2,729		16,873		15,335
Noninterest expense:
Salaries and employee benefits		10,733		10,600		9,927		43,056		39,395
Occupancy and equipment expenses		2,435		2,425		2,403		9,644		9,803
Data processing		1,750		1,805		1,499		6,870		5,857
Legal and professional		1,601		1,450		1,355		7,470		4,453
Office expenses		477		444		399		1,734		1,455
Marketing and business promotion		202		252		251		863		864
Insurance and regulatory assessments		753		732		677		2,924		3,298
Core deposit premium		156		172		182		672		784
Other expenses		858		803		956		3,430		3,254
Total noninterest expense		18,965		18,683		17,649		76,663		69,163
Income before income taxes		12,750		13,262		5,057		42,134		35,679
Income tax expense		2,573		3,114		672		10,186		9,014
Net income	$	10,177	$	10,148	$	4,385	$	31,948	$	26,665

Net income per share
Basic	$	0.60	$	0.59	$	0.25	$	1.83	$	1.47
Diluted	$	0.59	$	0.59	$	0.25	$	1.83	$	1.47
Cash dividends declared per common share	$	0.16	$	0.16	$	0.16	$	0.64	$	0.64
Weighted-average common shares outstanding
Basic		17,049,834		17,225,702		17,704,992		17,435,027		18,121,764
Diluted		17,140,478		17,301,627		17,796,840		17,500,330		18,183,319


RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)

	For the Three Months Ended
	December 31, 2025							September 30, 2025							December 31, 2024
*(tax-equivalent basis, dollars in thousands)*	Average		Interest		Yield /			Average		Interest		Yield /			Average		Interest		Yield /
*(tax-equivalent basis, dollars in thousands)*	Balance		& Fees		Rate			Balance		& Fees		Rate			Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	209,899	$	2,275		4.30	%	$	202,317	$	2,380		4.67	%	$	308,455	$	3,890		5.02	%
FHLB Stock		15,000		331		8.75	%		15,000		327		8.65	%		15,000		330		8.75	%
Securities
Available for sale ⁽²⁾		399,805		4,127		4.10	%		429,936		4,578		4.22	%		361,253		3,939		4.34	%
Held to maturity ⁽²⁾		4,184		38		3.60	%		4,186		38		3.60	%		5,194		48		3.68	%
Total loans ⁽³⁾		3,295,603		50,447		6.07	%		3,245,193		50,095		6.12	%		3,059,786		46,374		6.03	%
Total interest-earning assets		3,924,491	$	57,218		5.78	%		3,896,632	$	57,418		5.85	%		3,749,688	$	54,581		5.79	%
Total noninterest-earning assets		264,604							255,052							244,609
Total average assets	$	4,189,095						$	4,151,684						$	3,994,297

Interest-bearing liabilities
NOW	$	78,039		456		2.32	%	$	69,800	$	406		2.31	%	$	53,879	$	254		1.88	%
Money market		525,828		3,987		3.01	%		491,561		3,861		3.12	%		463,850		3,735		3.20	%
Saving deposits		191,841		873		1.81	%		138,344		407		1.17	%		162,351		682		1.67	%
Time deposits, $250,000 and under		1,044,315		9,927		3.77	%		1,050,682		10,312		3.89	%		1,034,946		11,583		4.45	%
Time deposits, greater than $250,000		972,354		9,661		3.94	%		960,094		9,840		4.07	%		835,583		9,778		4.66	%
Total interest-bearing deposits		2,812,377		24,904		3.51	%		2,710,481		24,826		3.63	%		2,550,609		26,032		4.06	%
FHLB advances		130,000		1,158		3.53	%		185,217		1,654		3.54	%		200,000		886		1.76	%
Long-term debt		119,848		1,295		4.29	%		119,752		1,295		4.29	%		119,466		1,295		4.31	%
Subordinated debentures		15,339		328		8.48	%		15,284		340		8.83	%		15,121		365		9.60	%
Total borrowings		265,187		2,781		4.16	%		320,253		3,289		4.07	%		334,587		2,546		3.03	%
Total interest-bearing liabilities		3,077,564		27,685		3.57	%		3,030,734		28,115		3.68	%		2,885,196		28,578		3.94	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		531,017							541,083							539,900
Other noninterest-bearing liabilities		61,320							66,993							56,993
Total noninterest-bearing liabilities		592,337							608,076							596,893
Shareholders’ equity		519,194							512,874							512,208
Total liabilities and shareholders’ equity	$	4,189,095						$	4,151,684						$	3,994,297
Net interest income / interest rate spreads			$	29,533		2.21	%			$	29,303		2.17	%			$	26,003		1.85	%
Net interest margin						2.99	%						2.98	%						2.76	%

Total cost of deposits	$	3,343,394	$	24,904		2.96	%	$	3,251,564	$	24,826		3.03	%	$	3,090,509	$	26,032		3.35	%
Total cost of funds	$	3,608,581	$	27,685		3.04	%	$	3,571,817	$	28,115		3.12	%	$	3,425,096	$	28,578		3.32	%

_____________________

(1)		Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2)		Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3)		Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.


RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)

	For the Year Ended December 31,
	2025							2024
(tax-equivalent basis, dollars in thousands)	Average		Interest		Yield /			Average		Interest		Yield /
(tax-equivalent basis, dollars in thousands)	Balance		& Fees		Rate			Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	192,642	$	8,885		4.61	%	$	297,331	$	16,449		5.53	%
FHLB Stock		15,000		1,312		8.75	%		15,000		1,314		8.76	%
Securities
Available for sale ⁽²⁾		404,929		17,006		4.20	%		324,644		14,242		4.39	%
Held to maturity ⁽²⁾		4,643		172		3.70	%		5,200		188		3.62	%
Total loans ⁽³⁾		3,198,619		193,849		6.06	%		3,041,337		184,567		6.07	%
Total interest-earning assets		3,815,833	$	221,224		5.80	%		3,683,512	$	216,760		5.88	%
Total noninterest-earning assets		258,550							243,258
Total average assets	$	4,074,383						$	3,926,770

Interest-bearing liabilities
NOW	$	69,003		1,551		2.25	%	$	56,158	$	1,105		1.97	%
Money market		491,048		15,247		3.10	%		436,925		15,231		3.49	%
Saving deposits		156,728		2,227		1.42	%		162,243		2,959		1.82	%
Time deposits, $250,000 and under		1,020,451		40,053		3.93	%		1,074,291		50,059		4.66	%
Time deposits, greater than $250,000		930,325		38,021		4.09	%		803,187		39,027		4.86	%
Total interest-bearing deposits		2,667,555		97,099		3.64	%		2,532,804		108,381		4.28	%
FHLB advances		162,767		5,221		3.21	%		162,705		2,217		1.36	%
Long-term debt		119,706		5,182		4.33	%		119,324		5,182		4.34	%
Subordinated debentures		15,257		1,342		8.80	%		15,039		1,517		10.09	%
Total borrowings		297,730		11,745		3.94	%		297,068		8,916		3.00	%
Total interest-bearing liabilities		2,965,285		108,844		3.67	%		2,829,872		117,297		4.14	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		529,651							531,458
Other noninterest-bearing liabilities		64,927							53,970
Total noninterest-bearing liabilities		594,578							585,428
Shareholders’ equity		514,520							511,470
Total liabilities and shareholders’ equity	$	4,074,383						$	3,926,770
Net interest income / interest rate spreads			$	112,380		2.13	%			$	99,463		1.74	%
Net interest margin						2.95	%						2.70	%

Total cost of deposits	$	3,197,206	$	97,099		3.04	%	$	3,064,262	$	108,381		3.54	%
Total cost of funds	$	3,494,936	$	108,844		3.11	%	$	3,361,330	$	117,297		3.49	%

_____________________

(1)			Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2)			Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3)			Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

	At or for the Three Months Ended									At or for the Year Ended December 31,
	December 31,			September 30,			December 31,
	2025			2025			2024			2025			2024
Per share data (common stock)
Book value	$	30.69		$	30.18		$	28.66		$	30.69		$	28.66
Tangible book value ⁽¹⁾	$	26.42		$	25.89		$	24.51		$	26.42		$	24.51
Performance ratios
Return on average assets, annualized		0.96	%		0.97	%		0.44	%		0.78	%		0.68	%
Return on average shareholders’ equity, annualized		7.78	%		7.85	%		3.41	%		6.21	%		5.21	%
Return on average tangible common equity, annualized⁽¹⁾		9.05	%		9.16	%		3.98	%		7.24	%		6.09	%
Noninterest income to average assets, annualized		0.27	%		0.31	%		0.27	%		0.41	%		0.39	%
Noninterest expense to average assets, annualized		1.80	%		1.79	%		1.76	%		1.88	%		1.76	%
Yield on average earning assets		5.78	%		5.85	%		5.79	%		5.80	%		5.88	%
Yield on average loans		6.07	%		6.12	%		6.03	%		6.06	%		6.07	%
Cost of average total deposits ⁽²⁾		2.96	%		3.03	%		3.35	%		3.04	%		3.54	%
Cost of average interest-bearing deposits		3.51	%		3.63	%		4.06	%		3.64	%		4.28	%
Cost of average interest-bearing liabilities		3.57	%		3.68	%		3.94	%		3.67	%		4.14	%
Net interest spread		2.21	%		2.17	%		1.85	%		2.13	%		1.74	%
Net interest margin		2.99	%		2.98	%		2.76	%		2.95	%		2.70	%
Efficiency ratio ⁽³⁾		58.69	%		57.36	%		61.48	%		59.36	%		60.30	%
Common stock dividend payout ratio		26.67	%		27.12	%		64.00	%		34.97	%		43.54	%

_____________________

(1)		Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
(2)		Total deposits include noninterest-bearing deposits and interest-bearing deposits.
(3)		Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands)

	At or for the quarter ended
	December 31,			September 30,			December 31,
	2025			2025			2024
Credit Quality Data:
Special mention loans	$	19,237		$	49,349		$	65,329
Special mention loans to total loans HFI		0.58	%		1.49	%		2.14	%
Substandard loans HFI	$	75,175		$	76,880		$	89,141
Substandard loans HFS	$	—		$	—		$	11,195
Substandard loans HFI to total loans HFI		2.27	%		2.33	%		2.92	%
Loans 30-89 days past due, excluding nonperforming loans	$	8,789		$	6,533		$	22,086
Loans 30-89 days past due, excluding nonperforming loans, to total loans		0.27	%		0.20	%		0.72	%

Nonperforming loans HFI	$	44,632		$	45,484		$	69,843
Nonperforming loans HFS		—			—			11,195
OREO		8,830			8,830			—
Nonperforming assets	$	53,462		$	54,314		$	81,038
Nonperforming loans to total loans HFI		1.35	%		1.38	%		2.29	%
Nonperforming assets to total assets		1.27	%		1.29	%		2.03	%

Allowance for loan losses	$	43,888		$	44,892		$	47,729
Allowance for loan losses to total loans HFI		1.32	%		1.36	%		1.56	%
Allowance for loan losses to nonperforming loans HFI		98.33	%		98.70	%		68.34	%
Net charge-offs	$	1,624		$	6,872		$	2,006
Net charge-offs to average loans		0.20	%		0.84	%		0.26	%

Capital ratios ⁽¹⁾
Tangible common equity to tangible assets ⁽²⁾		10.90	%		10.67	%		11.08	%
Tier 1 leverage ratio		11.60	%		11.50	%		11.92	%
Tier 1 common capital to risk-weighted assets		17.49	%		17.28	%		17.94	%
Tier 1 capital to risk-weighted assets		18.06	%		17.85	%		18.52	%
Total capital to risk-weighted assets		23.83	%		23.64	%		24.49	%

_____________________

(1)			December 31, 2025 capital ratios are preliminary.
(2)			Non-GAAP measure. See non-GAAP reconciliations set forth at the end of this press release.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

Loan Portfolio Detail	As of December 31, 2025					As of September 30, 2025						As of December 31, 2024
(dollars in thousands)	$			%		$			%			$			%
Loans:
Single-family residential mortgages	$	1,655,382		50.0	%	$	1,650,989			50.0	%	$	1,494,022			48.9	%
Commercial real estate (1)		1,303,019		39.3	%		1,286,603			39.0	%		1,201,420			39.3	%
Construction and land development		155,464		4.7	%		159,152			4.8	%		173,290			5.7	%
Commercial and industrial		140,061		4.2	%		146,667			4.4	%		129,585			4.2	%
SBA		55,978		1.7	%		54,033			1.6	%		47,263			1.5	%
Other loans		4,397		0.1	%		5,133			0.2	%		7,650			0.4	%
Total loans held for investment	$	3,314,301		100.0	%	$	3,302,577			100.0	%	$	3,053,230			100.0	%
Allowance for loan losses		(43,888	)				(44,892	)					(47,729	)
Total loans held for investment, net	$	3,270,413				$	3,257,685					$	3,005,501

_____________________

(1)

Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.

Deposits	As of December 31, 2025				As of September 30, 2025					As of December 31, 2024
*(dollars in thousands)*	$		%		$		%			$		%
Deposits:
Noninterest-bearing demand	$	526,538	15.7	%	$	550,488		16.4	%	$	563,012		18.3	%
Savings, NOW and money market accounts		956,299	28.6	%		721,697		21.4	%		663,034		21.5	%
Time deposits, $250,000 and under		790,225	23.6	%		872,463		25.9	%		882,438		28.6	%
Time deposits, greater than $250,000		851,637	25.4	%		953,785		28.3	%		827,854		26.8	%
Wholesale deposits ⁽¹⁾		225,699	6.7	%		268,064		8.0	%		147,451		4.8	%
Total deposits	$	3,350,398	100.0	%	$	3,366,497		100.0	%	$	3,083,789		100.0	%

_____________________

(1)		Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of as of the dates indicated.


*(dollars in thousands, except share and per share data)*	December 31, 2025			September 30, 2025			December 31, 2024
Tangible common equity:
Total shareholders’ equity	$	523,410		$	514,335		$	507,877
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,338	)		(1,495	)		(2,011	)
Tangible common equity	$	450,574		$	441,342		$	434,368
Tangible assets:
Total assets-GAAP	$	4,208,294		$	4,208,455		$	3,992,477
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,338	)		(1,495	)		(2,011	)
Tangible assets	$	4,135,458		$	4,135,462		$	3,918,968
Common shares outstanding		17,057,397			17,043,897			17,720,416
Common equity to assets ratio		12.44	%		12.22	%		12.72	%
Tangible common equity to tangible assets ratio		10.90	%		10.67	%		11.08	%
Book value per share	$	30.69		$	30.18		$	28.66
Tangible book value per share	$	26.42		$	25.89		$	24.51

Return on Average Tangible Common Equity

Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

	Three Months Ended									Year Ended December 31,
*(dollars in thousands)*	December 31, 2025			September 30, 2025			December 31, 2024			2025			2024
Net income available to common shareholders	$	10,177		$	10,148		$	4,385		$	31,948		$	26,665

Average shareholders’ equity	$	519,194		$	512,874		$	512,208		$	514,520		$	511,470
Adjustments:
Average goodwill		(71,498	)		(71,498	)		(71,498	)		(71,498	)		(71,498	)
Average core deposit intangible		(1,440	)		(1,608	)		(2,129	)		(1,693	)		(2,425	)
Adjusted average tangible common equity	$	446,256		$	439,768		$	438,581		$	441,329		$	437,547
Return on average common equity, annualized		7.78	%		7.85	%		3.41	%		6.21	%		5.21	%
Return on average tangible common equity, annualized		9.05	%		9.16	%		3.98	%		7.24	%		6.09	%

Pre-Tax Pre-Provision Income

Management believes that pre-tax pre-provision (“PTPP”) income is a useful measure for investors to evaluate core operating performance, excluding the volatility of credit provision expenses. PTPP income is calculated by subtracting noninterest expense from the sum of net interest income and noninterest income, as shown in the following table.

	Three Months Ended									Year Ended December 31,
(dollars in thousands)	December 31, 2025			September 30, 2025			December 31, 2024			2025			2024
Net interest income before provision for credit losses	$	29,508		$	29,277		$	25,977		$	112,282		$	99,364
Add: Noninterest income		2,807			3,293			2,729			16,873			15,335
Less: Noninterest expense		(18,965	)		(18,683	)		(17,649	)		(76,663	)		(69,163	)
Pre-tax pre-provision income	$	13,350		$	13,887		$	11,057		$	52,492		$	45,536

First Merchants Corporation Announces Fourth Quarter 2025 Earnings Per Share

First Merchants Corporation on February 5, 2026

MUNCIE, Ind., Jan. 26, 2026 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME) (the “Corporation”)

Achieved record full‑year results, including net income available to common stockholders of $224.1 million and diluted EPS of $3.88 for 2025.

Fourth Quarter 2025 Highlights:

Net income available to common stockholders was $56.6 million and diluted earnings per common share totaled $0.99, compared to $56.3 million and $0.98 in the third quarter of 2025, and $63.9 million and $1.10 in the fourth quarter of 2024. Adjusted net income available to common stockholders¹ was $56.4 million and adjusted diluted earnings per common share¹ totaled $0.98, compared to $57.0 million and $0.99 in the third quarter of 2025, and $58.1 million and $1.00 per common share for the fourth quarter of 2024.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.70% and Tangible Common Equity to Tangible Assets Ratio of 9.38%.
Repurchased 1,211,224 shares totaling $46.9 million year-to-date; repurchased 271,953 shares totaling $10.4 million during the fourth quarter.
Total loans grew $197.4 million, or 5.8% annualized, on a linked quarter basis, and $938.8 million, or 7.3%, during the last twelve months.
Total deposits increased $424.9 million, or 11.4% annualized, on a linked quarter basis, and $773.2 million, or 5.3%, during the last twelve months.
Nonperforming assets to total assets were 38 basis points compared to 36 basis points on a linked quarter basis and 43 basis points as of the fourth quarter of 2024.
The efficiency ratio totaled 54.52% for the quarter.
Received regulatory approval of the acquisition of First Savings Financial Group, Inc. adding approximately $2.4 billion in assets and expanding the Corporation’s presence into Southern Indiana and the Louisville MSA. Closing is expected on February 1, 2026.

“First Merchants delivered record double-digit earnings and high single-digit loan growth in 2025. Our capital, liquidity and credit positions remain very strong and position us for continued success,” said Mark Hardwick, Chief Executive Officer. “The pending completion of the First Savings Bank acquisition on February 1st will further enhance our state-wide Indiana presence. We value the continued trust of our clients, teammates and shareholders.”

Fourth Quarter Financial Results:

First Merchants Corporation (the “Corporation”) reported fourth quarter 2025 net income available to common stockholders of $56.6 million compared to $63.9 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.99 compared to $1.10 in the fourth quarter of 2024. During the fourth quarter of 2024, the Corporation completed the sale of five Illinois branches, including $7.4 million of loans and $267.4 million of deposits, generating a $20.0 million gain recorded in noninterest income. Excluding non-core income and expenses incurred in each period, adjusted earnings per common share¹ for the fourth quarter 2025 totaled $0.98 compared to $1.00 in the prior year period.

Total assets of the Corporation equaled $19.0 billion as of quarter-end and loans totaled $13.8 billion. During the past twelve months, total loans grew by $938.8 million, or 7.3%. On a linked quarter basis, loans grew $197.4 million, or 5.8% annualized.

Investments, totaling $3.4 billion, decreased $82.1 million, or 2.4%, during the last twelve months and were flat on a linked quarter basis. Investments declined during the quarter due to principal paydowns and maturities; however, the decline was offset by an increase in the securities portfolio valuation.

Total deposits equaled $15.3 billion as of quarter-end and increased by $773.2 million, or 5.3%, over the past twelve months. On a linked quarter basis, deposits increased $424.9 million, or 11.4% annualized. The loan to deposit ratio decreased to 90.3% at period end from 91.6% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.6 million as of quarter-end, or 1.42% of total loans, an increase of $1.1 million from prior quarter. Net charge-offs totaled $6.0 million and provision for credit losses of $7.2 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million and remained unchanged from the prior quarter. Non-performing assets to total assets were 0.38% for the fourth quarter of 2025, compared to 0.36% in the prior quarter, reflecting stable credit performance.

Net interest income, totaling $139.1 million for the quarter, increased $5.4 million, or 4.0%, compared to prior quarter and increased $4.7 million, or 3.5%, compared to the fourth quarter of 2024. Positively impacting net interest income was an interest recovery of $3.3 million recorded during the current quarter from the successful resolution of a nonaccrual commercial real estate loan. Fully tax equivalent net interest margin was 3.29%, an increase of five basis points compared to prior quarter, and an increase of one basis point compared to the fourth quarter of 2024.

Noninterest income totaled $33.1 million for the quarter, an increase of $0.6 million compared to the third quarter of 2025 and a decrease of $9.6 million from the fourth quarter of 2024. The linked quarter increase was driven by higher customer-related fees including wealth management and card payment fees, as well as higher gains on the sales of mortgage loans. The decrease from the fourth quarter of prior year was driven by a gain on the sale of five Illinois branches to Old Second National Bank on December 6, 2024. Customer-related fees increased $0.7 million over the fourth quarter of prior year.

Noninterest expense totaled $99.5 million for the quarter, an increase of $3.0 million from the third quarter of 2025 and an increase of $3.2 million from the fourth quarter of 2024. The linked quarter increase was from higher health insurance, software and credit costs. Additionally, $0.5 million of acquisition-related costs were recorded in the current quarter. Offsetting these increases was a $0.7 million reduction of an FDIC special assessment accrual that was originally recorded in the first quarter of 2024 following the bank failures of 2023. The increase from the fourth quarter of 2024 was due to higher salaries, employee benefits and data processing costs offset by the reduction of the FDIC special assessment accrual.

The Corporation’s total risk-based capital ratio equaled 13.41%, common equity tier 1 capital ratio equaled 11.70%, and the tangible common equity ratio totaled 9.38%. These ratios continue to reflect the Corporation’s strong capital position.

¹ See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and webcast at 9:00 a.m. (ET) on Tuesday, January 27, 2026.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI2b60181d46504632aa732ea584590460)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/o68enev5) during the time of the call. A replay of the webcast will be available until January 27, 2027.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These forward- looking statements include, but are not limited to, statements relating to the expected timing and benefits of the proposed merger between First Merchants and First Savings, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the proposed merger, as well as other statements of expectations regarding the proposed merger, and other statements of First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits, whether with respect to the proposed merger or otherwise. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: the risk that the businesses of First Merchants and First Savings will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; expected revenue synergies and cost savings from the proposed merger may not be fully realized or realized within the expected time frame; revenues following the proposed merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the proposed merger; the ability to complete the proposed merger on the expected timeframe; possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit-worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large uninsured deposits), credit and interest rate risks associated with First Merchants’ business; the impacts of epidemics, pandemics or other infectious disease outbreaks; and other risks and factors identified in each of First Merchants’ filings with the SEC. Neither First Merchants nor First Savings undertakes any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this news release. In addition, the companies’ respective past results of operations do not necessarily indicate their anticipated future results, whether or not the proposed merger is completed.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, First Merchants Corporation has provided reconciliations within this news release, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure.


CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,
		2025			2024
ASSETS
Cash and due from banks	$	84,158		$	87,616
Interest-bearing deposits		196,300			298,891
Investment securities available for sale		1,407,102			1,386,475
Investment securities held to maturity, net of allowance for credit losses		1,971,539			2,074,220
Loans held for sale		20,079			18,663
Loans		13,791,707			12,854,359
Less: Allowance for credit losses – loans		(195,597	)		(192,757	)
Net loans		13,596,110			12,661,602
Premises and equipment		121,058			129,743
Federal Home Loan Bank stock		47,245			41,690
Interest receivable		93,374			91,829
Goodwill		712,002			712,002
Other intangibles		13,800			19,828
Cash surrender value of life insurance		308,438			304,906
Other real estate owned		658			4,948
Tax asset, deferred and receivable		78,664			92,387
Other assets		374,574			387,169
TOTAL ASSETS	$	19,025,101		$	18,311,969
LIABILITIES
Deposits:
Noninterest-bearing	$	2,137,262		$	2,325,579
Interest-bearing		13,157,593			12,196,047
Total Deposits		15,294,855			14,521,626
Borrowings:
Federal funds purchased		40,000			99,226
Securities sold under repurchase agreements		103,755			142,876
Federal Home Loan Bank advances		798,549			822,554
Subordinated debentures and other borrowings		57,630			93,529
Total Borrowings		999,934			1,158,185
Interest payable		18,235			16,102
Other liabilities		245,410			311,073
Total Liabilities		16,558,434			16,006,986
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000
Common Stock, $0.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding – 56,951,939 and 57,974,535 shares		7,119			7,247
Additional paid-in capital		1,150,816			1,188,768
Retained earnings		1,413,742			1,272,528
Accumulated other comprehensive loss		(130,135	)		(188,685	)
Total Stockholders’ Equity		2,466,667			2,304,983
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	19,025,101		$	18,311,969

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	Three Months Ended					Twelve Months Ended
(Dollars In Thousands, Except Per Share Amounts)	December 31,					December 31,
		2025		2024			2025			2024
INTEREST INCOME
Loans:
Taxable	$	203,120	$	197,536		$	786,427		$	803,652
Tax-exempt		10,905		9,020			43,415			34,262
Investment securities:
Taxable		7,736		9,024			32,662			36,086
Tax-exempt		12,459		12,754			49,952			53,487
Deposits with financial institutions		2,187		5,350			8,127			16,992
Federal Home Loan Bank stock		1,037		958			4,209			3,527
Total Interest Income		237,444		234,642			924,792			948,006
INTEREST EXPENSE
Deposits		88,670		89,835			344,279			386,127
Federal funds purchased		218		26			2,219			481
Securities sold under repurchase agreements		405		680			2,464			3,057
Federal Home Loan Bank advances		8,047		8,171			35,763			29,886
Subordinated debentures and other borrowings		1,040		1,560			4,054			7,341
Total Interest Expense		98,380		100,272			388,779			426,892
NET INTEREST INCOME		139,064		134,370			536,013			521,114
Provision for credit losses		7,150		4,200			21,250			35,700
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,914		130,170			514,763			485,414
NONINTEREST INCOME
Service charges on deposit accounts		8,704		8,124			34,263			32,606
Fiduciary and wealth management fees		9,175		8,665			35,492			34,215
Card payment fees		5,325		4,957			19,790			19,317
Net gains and fees on sales of loans		5,421		5,681			21,275			20,840
Derivative hedge fees		1,053		1,594			3,385			3,082
Other customer fees		315		316			1,545			1,547
Earnings on bank-owned life insurance		1,854		2,188			7,613			8,464
Net realized losses on sales of available for sale securities		—		(11,592	)		(8	)		(20,757	)
Gain on branch sale		—		19,983			—			19,983
Other income		1,259		2,826			3,579			6,283
Total Noninterest Income		33,106		42,742			126,934			125,580
NONINTEREST EXPENSE
Salaries and employee benefits		58,254		55,437			225,080			221,167
Net occupancy		7,283		7,335			28,401			28,387
Equipment		7,681		7,028			28,614			26,802
Marketing		2,324		2,582			7,794			7,389
Outside data processing fees		7,509		6,029			27,488			27,140
Printing and office supplies		450		377			1,380			1,462
Intangible asset amortization		1,498		1,771			6,028			7,271
FDIC assessments		2,684		3,744			13,410			15,029
Other real estate owned and foreclosure expenses		775		227			1,525			2,076
Professional and other outside services		3,774		3,777			14,494			14,586
Other expenses		7,290		7,982			28,369			27,957
Total Noninterest Expense		99,522		96,289			382,583			379,266
Income Before Income Taxes		65,498		76,623			259,114			231,728
Income tax expense		8,433		12,274			33,113			30,326
NET INCOME		57,065		64,349			226,001			201,402
Preferred stock dividends		469		469			1,875			1,875
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,596	$	63,880		$	224,126		$	199,527

PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.99	$	1.10		$	3.90		$	3.42
Diluted Net Income Available to Common Stockholders	$	0.99	$	1.10		$	3.88		$	3.41
Cash Dividends Paid to Common Stockholders	$	0.36	$	0.35		$	1.43		$	1.39
Tangible Common Book Value Per Share	$	30.18	$	26.78		$	30.18		$	26.78
Average Diluted Common Shares Outstanding (in thousands)		57,442		58,247			57,726			58,533

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2025			2024			2025			2024
NET CHARGE-OFFS	$	6,021		$	771		$	18,410		$	49,377

AVERAGE BALANCES:
Total Assets	$	19,039,989		$	18,478,303		$	18,633,952		$	18,400,495
Total Loans		13,717,822			12,757,676			13,320,678			12,634,324
Total Earning Assets		17,648,233			17,089,198			17,264,588			17,054,267
Total Deposits		15,294,518			14,788,294			14,816,114			14,816,564
Total Stockholders’ Equity		2,452,005			2,312,270			2,375,500			2,252,491

FINANCIAL RATIOS:
Return on Average Assets		1.20	%		1.39	%		1.21	%		1.09	%
Return on Average Stockholders’ Equity		9.23			11.05			9.43			8.86
Return on Tangible Common Stockholders’ Equity		13.57			16.75			14.08			13.71
Average Earning Assets to Average Assets		92.69			92.48			92.65			92.68
Allowance for Credit Losses – Loans as % of Total Loans		1.42			1.50			1.42			1.50
Net Charge-offs as % of Average Loans (Annualized)		0.18			0.02			0.14			0.39
Average Stockholders’ Equity to Average Assets		12.88			12.51			12.75			12.24
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.52			5.63			5.50			5.69
Interest Expense/Average Earning Assets		2.23			2.35			2.25			2.50
Net Interest Margin FTE		3.29			3.28			3.25			3.19
Efficiency Ratio		54.52			48.48			54.54			53.55

ASSET QUALITY
(Dollars In Thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Nonaccrual Loans	$	71,773		$	65,740		$	67,358		$	81,922		$	73,773
Other Real Estate Owned and Repossessions		658			1,270			177			4,966			4,948
Nonperforming Assets (NPA)		72,431			67,010			67,535			86,888			78,721
90+ Days Delinquent		2,042			1,925			4,443			4,280			5,902
NPAs & 90+ Days Delinquent	$	74,473		$	68,935		$	71,978		$	91,168		$	84,623

Allowance for Credit Losses – Loans	$	195,597		$	194,468		$	195,316		$	192,031		$	192,757
Quarterly Net Charge-offs		6,021			5,148			2,315			4,926			771
NPAs / Actual Assets %		0.38	%		0.36	%		0.36	%		0.47	%		0.43	%
NPAs & 90 Day / Actual Assets %		0.39	%		0.37	%		0.39	%		0.49	%		0.46	%
NPAs / Actual Loans and OREO %		0.52	%		0.49	%		0.51	%		0.67	%		0.61	%
Allowance for Credit Losses – Loans / Actual Loans (%)		1.42	%		1.43	%		1.47	%		1.47	%		1.50	%
Quarterly Net Charge-offs as % of Average Loans (Annualized)		0.18	%		0.15	%		0.07	%		0.15	%		0.02	%

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
ASSETS
Cash and due from banks	$	84,158		$	88,079		$	81,567		$	86,113		$	87,616
Interest-bearing deposits		196,300			168,706			223,343			331,534			298,891
Investment securities available for sale		1,407,102			1,386,903			1,358,130			1,378,489			1,386,475
Investment securities held to maturity, net of allowance for credit losses		1,971,539			1,995,488			2,022,826			2,048,632			2,074,220
Loans held for sale		20,079			23,190			28,783			23,004			18,663
Loans		13,791,707			13,591,174			13,296,759			13,004,905			12,854,359
Less: Allowance for credit losses – loans		(195,597	)		(194,468	)		(195,316	)		(192,031	)		(192,757	)
Net loans		13,596,110			13,396,706			13,101,443			12,812,874			12,661,602
Premises and equipment		121,058			121,771			122,808			128,749			129,743
Federal Home Loan Bank stock		47,245			47,264			47,290			45,006			41,690
Interest receivable		93,374			89,102			93,258			88,352			91,829
Goodwill		712,002			712,002			712,002			712,002			712,002
Other intangibles		13,800			15,298			16,797			18,302			19,828
Cash surrender value of life insurance		308,438			306,583			305,695			304,918			304,906
Other real estate owned		658			1,270			177			4,966			4,948
Tax asset, deferred and receivable		78,664			89,758			97,749			87,665			92,387
Other assets		374,574			369,509			380,909			369,181			387,169
TOTAL ASSETS	$	19,025,101		$	18,811,629		$	18,592,777		$	18,439,787		$	18,311,969
LIABILITIES
Deposits:
Noninterest-bearing	$	2,137,262		$	2,100,570		$	2,197,416		$	2,185,057		$	2,325,579
Interest-bearing		13,157,593			12,769,409			12,600,162			12,276,921			12,196,047
Total Deposits		15,294,855			14,869,979			14,797,578			14,461,978			14,521,626
Borrowings:
Federal funds purchased		40,000			199,370			85,000			185,000			99,226
Securities sold under repurchase agreements		103,755			122,226			114,758			122,947			142,876
Federal Home Loan Bank advances		798,549			798,626			898,702			972,478			822,554
Subordinated debentures and other borrowings		57,630			57,632			62,617			62,619			93,529
Total Borrowings		999,934			1,177,854			1,161,077			1,343,044			1,158,185
Interest payable		18,235			18,240			16,174			13,304			16,102
Other liabilities		245,410			333,154			269,996			289,247			311,073
Total Liabilities		16,558,434			16,399,227			16,244,825			16,107,573			16,006,986
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125			125			125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000			25,000			25,000			25,000
Common Stock, $0.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding		7,119			7,149			7,159			7,226			7,247
Additional paid-in capital		1,150,816			1,158,026			1,163,170			1,183,263			1,188,768
Retained earnings		1,413,742			1,377,966			1,342,473			1,306,911			1,272,528
Accumulated other comprehensive loss		(130,135	)		(155,864	)		(189,975	)		(190,311	)		(188,685	)
Total Stockholders’ Equity		2,466,667			2,412,402			2,347,952			2,332,214			2,304,983
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	19,025,101		$	18,811,629		$	18,592,777		$	18,439,787		$	18,311,969

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
INTEREST INCOME
Loans:
Taxable	$	203,120		$	200,406		$	195,173		$	187,728		$	197,536
Tax-exempt		10,905			11,173			10,805			10,532			9,020
Investment securities:
Taxable		7,736			8,288			8,266			8,372			9,024
Tax-exempt		12,459			12,460			12,516			12,517			12,754
Deposits with financial institutions		2,187			1,676			1,892			2,372			5,350
Federal Home Loan Bank stock		1,037			1,092			1,083			997			958
Total Interest Income		237,444			235,095			229,735			222,518			234,642
INTEREST EXPENSE
Deposits		88,670			90,821			84,241			80,547			89,835
Federal funds purchased		218			224			965			812			26
Securities sold under repurchase agreements		405			654			663			742			680
Federal Home Loan Bank advances		8,047			8,638			9,714			9,364			8,171
Subordinated debentures and other borrowings		1,040			1,093			1,138			783			1,560
Total Interest Expense		98,380			101,430			96,721			92,248			100,272
NET INTEREST INCOME		139,064			133,665			133,014			130,270			134,370
Provision for credit losses		7,150			4,300			5,600			4,200			4,200
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		131,914			129,365			127,414			126,070			130,170
NONINTEREST INCOME
Service charges on deposit accounts		8,704			8,921			8,566			8,072			8,124
Fiduciary and wealth management fees		9,175			8,842			8,831			8,644			8,665
Card payment fees		5,325			5,007			4,932			4,526			4,957
Net gains and fees on sales of loans		5,421			4,983			5,849			5,022			5,681
Derivative hedge fees		1,053			1,097			831			404			1,594
Other customer fees		315			414			401			415			316
Earnings on bank-owned life insurance		1,854			1,667			1,913			2,179			2,188
Net realized losses on sales of available for sale securities		—			—			(1	)		(7	)		(11,592	)
Gain on branch sale		—			—			—			—			19,983
Other income (loss)		1,259			1,546			(19	)		793			2,826
Total Noninterest Income		33,106			32,477			31,303			30,048			42,742
NONINTEREST EXPENSE
Salaries and employee benefits		58,254			57,317			54,527			54,982			55,437
Net occupancy		7,283			7,057			6,845			7,216			7,335
Equipment		7,681			6,998			6,927			7,008			7,028
Marketing		2,324			2,120			1,997			1,353			2,582
Outside data processing fees		7,509			6,943			7,107			5,929			6,029
Printing and office supplies		450			311			272			347			377
Intangible asset amortization		1,498			1,499			1,505			1,526			1,771
FDIC assessments		2,684			3,526			3,552			3,648			3,744
Other real estate owned and foreclosure expenses		775			121			29			600			227
Professional and other outside services		3,774			3,718			3,741			3,261			3,777
Other expenses		7,290			6,951			7,096			7,032			7,982
Total Noninterest Expense		99,522			96,561			93,598			92,902			96,289
Income Before Income Taxes		65,498			65,281			65,119			63,216			76,623
Income tax expense		8,433			8,516			8,287			7,877			12,274
NET INCOME		57,065			56,765			56,832			55,339			64,349
Preferred stock dividends		469			468			469			469			469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,596		$	56,297		$	56,363		$	54,870		$	63,880

PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.99		$	0.98		$	0.98		$	0.95		$	1.10
Diluted Net Income Available to Common Stockholders	$	0.99		$	0.98		$	0.98		$	0.94		$	1.10
Cash Dividends Paid to Common Stockholders	$	0.36		$	0.36		$	0.36		$	0.35		$	0.35
Tangible Common Book Value Per Share	$	30.18		$	29.08		$	27.90		$	27.34		$	26.78
Average Diluted Common Shares Outstanding (in thousands)		57,442			57,448			57,773			58,242			58,247
FINANCIAL RATIOS:
Return on Average Assets		1.20	%		1.22	%		1.23	%		1.21	%		1.39	%
Return on Average Stockholders’ Equity		9.23			9.51			9.63			9.38			11.05
Return on Tangible Common Stockholders’ Equity		13.57			14.21			14.49			14.12			16.75
Average Earning Assets to Average Assets		92.69			92.73			92.71			92.47			92.48
Allowance for Credit Losses – Loans as % of Total Loans		1.42			1.43			1.47			1.47			1.50
Net Charge-offs as % of Average Loans (Annualized)		0.18			0.15			0.07			0.15			0.02
Average Stockholders’ Equity to Average Assets		12.88			12.71			12.64			12.76			12.51
Fully Taxable Equivalent (FTE) Yield on Average Earning Assets		5.52			5.58			5.50			5.39			5.63
Interest Expense/Average Earning Assets		2.23			2.34			2.25			2.17			2.35
Net Interest Margin FTE		3.29			3.24			3.25			3.22			3.28
Efficiency Ratio		54.52			55.09			53.99			54.54			48.48

LOANS
(Dollars In Thousands)	December 31,			September 30,			June 30,			March 31,			December 31,
		2025			2025			2025			2025			2024
Commercial and industrial loans	$	4,478,282		$	4,604,895		$	4,440,924		$	4,306,597		$	4,114,292
Agricultural land, production and other loans to farmers		283,125			275,817			265,172			243,864			256,312
Real estate loans:
Construction		804,775			789,021			836,033			793,175			792,144
Commercial real estate, non-owner occupied		2,338,666			2,304,889			2,171,092			2,177,869			2,274,016
Commercial real estate, owner occupied		1,237,100			1,232,117			1,226,797			1,214,739			1,157,944
Residential		2,420,310			2,412,783			2,397,094			2,389,852			2,374,729
Home equity		710,980			687,021			673,961			650,499			659,811
Individuals’ loans for household and other personal expenditures		155,436			138,703			141,045			140,954			166,028
Public finance and other commercial loans		1,363,033			1,145,928			1,144,641			1,087,356			1,059,083
Loans		13,791,707			13,591,174			13,296,759			13,004,905			12,854,359
Allowance for credit losses – loans		(195,597	)		(194,468	)		(195,316	)		(192,031	)		(192,757	)
NET LOANS	$	13,596,110		$	13,396,706		$	13,101,443		$	12,812,874		$	12,661,602

DEPOSITS
(Dollars In Thousands)	December 31,		September 30,		June 30,		March 31,		December 31,
		2025		2025		2025		2025		2024
Demand deposits	$	7,770,473	$	7,645,698	$	7,798,695	$	7,786,554	$	7,980,061
Savings deposits		5,481,785		5,164,707		4,984,659		4,791,874		4,522,758
Certificates and other time deposits of $100,000 or less		603,690		627,828		617,857		625,203		692,068
Certificates and other time deposits of $100,000 or more		915,293		910,337		891,139		896,143		1,043,068
Brokered certificates of deposits⁽¹⁾		523,614		521,409		505,228		362,204		283,671
TOTAL DEPOSITS	$	15,294,855	$	14,869,979	$	14,797,578	$	14,461,978	$	14,521,626

⁽¹⁾ Total brokered deposits of $1.5 billion, which includes brokered CD’s of $523.6 million at December 31, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	December 31, 2025						December 31, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	313,018	$	2,187	2.79	%	$	522,868	$	5,350	4.09	%
Federal Home Loan Bank stock		47,251		1,037	8.78			41,703		958	9.19
Investment Securities:⁽¹⁾
Taxable		1,535,025		7,736	2.02			1,677,554		9,024	2.15
Tax-exempt⁽²⁾		2,035,117		15,771	3.10			2,089,397		16,144	3.09
Total Investment Securities		3,570,142		23,507	2.63			3,766,951		25,168	2.67
Loans held for sale		32,272		494	6.12			36,219		550	6.07
Loans:⁽³⁾
Commercial		9,417,302		160,949	6.84			8,753,723		156,414	7.15
Real estate mortgage		2,236,769		26,019	4.65			2,177,351		24,401	4.48
HELOC and installment		870,199		15,658	7.20			841,537		16,171	7.69
Tax-exempt⁽²⁾		1,161,280		13,778	4.75			948,846		11,418	4.81
Total Loans		13,717,822		216,898	6.32			12,757,676		208,954	6.55
Total Earning Assets		17,648,233		243,629	5.52	%		17,089,198		240,430	5.63	%
Total Non-Earning Assets		1,391,756						1,389,105
TOTAL ASSETS	$	19,039,989					$	18,478,303
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,652,753	$	34,573	2.45	%	$	5,564,228	$	37,049	2.66	%
Money market deposits		4,144,256		31,813	3.07			3,189,334		25,463	3.19
Savings deposits		1,261,173		2,399	0.76			1,362,705		3,102	0.91
Certificates and other time deposits		2,077,545		19,885	3.83			2,313,284		24,221	4.19
Total Interest-Bearing Deposits		13,135,727		88,670	2.70			12,429,551		89,835	2.89
Borrowings		973,364		9,710	3.99			1,049,677		10,437	3.98
Total Interest-Bearing Liabilities		14,109,091		98,380	2.79			13,479,228		100,272	2.98
Noninterest-bearing deposits		2,158,791						2,358,743
Other liabilities		320,102						328,062
Total Liabilities		16,587,984						16,166,033
STOCKHOLDERS’ EQUITY		2,452,005						2,312,270
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	19,039,989					$	18,478,303
Net Interest Income (FTE)			$	145,249					$	140,158
Net Interest Spread (FTE)⁽⁴⁾					2.73	%					2.65	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.52	%					5.63	%
Interest Expense / Average Earning Assets					2.23	%					2.35	%
Net Interest Margin (FTE)⁽⁵⁾					3.29	%					3.28	%

⁽¹⁾Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6.2 million and $5.8 million for the three months ended December 31, 2025 and 2024, respectively.
⁽³⁾Non accruing loans have been included in the average balances.
⁽⁴⁾Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Twelve Months Ended
	December 31, 2025						December 31, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	272,164	$	8,127	2.99	%	$	418,163	$	16,992	4.06	%
Federal Home Loan Bank stock		46,289		4,209	9.09			41,736		3,527	8.45
Investment Securities:⁽¹⁾
Taxable		1,585,375		32,662	2.06			1,759,578		36,086	2.05
Tax-exempt⁽²⁾		2,040,082		63,230	3.10			2,200,466		67,705	3.08
Total Investment Securities		3,625,457		95,892	2.64			3,960,044		103,791	2.62
Loans held for sale		26,199		1,603	6.12			29,650		1,792	6.04
Loans:⁽³⁾
Commercial		9,091,847		621,298	6.83			8,687,638		641,393	7.38
Real estate mortgage		2,211,726		101,203	4.58			2,158,743		94,890	4.40
HELOC and installment		846,430		62,323	7.36			830,079		65,577	7.90
Tax-exempt⁽²⁾		1,144,476		54,857	4.79			928,214		43,370	4.67
Total Loans		13,320,678		841,284	6.32			12,634,324		847,022	6.70
Total Earning Assets		17,264,588		949,512	5.50	%		17,054,267		971,332	5.69	%
Total Non-Earning Assets		1,369,364						1,346,228
TOTAL ASSETS	$	18,633,952					$	18,400,495
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	5,580,592	$	141,945	2.54	%	$	5,506,492	$	157,984	2.87	%
Money market deposits		3,762,100		118,188	3.14			3,061,461		106,026	3.46
Savings deposits		1,278,138		9,962	0.78			1,463,707		14,587	1.00
Certificates and other time deposits		2,016,857		74,184	3.68			2,413,900		107,530	4.45
Total Interest-Bearing Deposits		12,637,687		344,279	2.72			12,445,560		386,127	3.10
Borrowings		1,138,760		44,500	3.91			1,005,017		40,765	4.06
Total Interest-Bearing Liabilities		13,776,447		388,779	2.82			13,450,577		426,892	3.17
Noninterest-bearing deposits		2,178,427						2,371,004
Other liabilities		303,578						326,423
Total Liabilities		16,258,452						16,148,004
STOCKHOLDERS’ EQUITY		2,375,500						2,252,491
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,633,952					$	18,400,495
Net Interest Income (FTE)			$	560,733					$	544,440
Net Interest Spread (FTE)⁽⁴⁾					2.68	%					2.52	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.50	%					5.69	%
Interest Expense / Average Earning Assets					2.25	%					2.50	%
Net Interest Margin (FTE)⁽⁵⁾					3.25	%					3.19	%

⁽¹⁾Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $24.7 million and $23.3 million for the years ended December 31, 2025 and 2024, respectively.
⁽³⁾Non accruing loans have been included in the average balances.
⁽⁴⁾Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended														Twelve Months Ended
	December 31,			September 30,			June 30,		March 31,			December 31,			December 31,			December 31,
		2025			2025		2025			2025			2024			2025			2024
Net Income Available to Common Stockholders – GAAP	$	56,596		$	56,297		$	56,363	$	54,870		$	63,880		$	224,126		$	199,527
Adjustments:
Net realized losses on sales of available for sale securities		—			—			1		7			11,592			8			20,757
Gain on branch sale		—			—			—		—			(19,983	)		—			(19,983	)
Acquisition-related expenses		524			276			—		—			—			800			—
Non-core expenses^(1)(2)(3)(4)		(743	)		633			—		—			762			(110	)		4,243
Tax on adjustments		53			(220	)		—		(2	)		1,851			(169	)		(1,229	)
Adjusted Net Income Available to Common Stockholders – Non-GAAP	$	56,430		$	56,986		$	56,364	$	54,875		$	58,102		$	224,655		$	203,315

Average Diluted Common Shares Outstanding (in thousands)		57,442			57,448			57,773		58,242			58,247			57,726			58,533

Diluted Earnings Per Common Share – GAAP	$	0.99		$	0.98		$	0.98	$	0.94		$	1.10		$	3.88		$	3.41
Adjustments:
Net realized losses on sales of available for sale securities		—			—			—		—			0.20			—			0.35
Gain on branch sale		—			—			—		—			(0.34	)		—			(0.34	)
Acquisition-related expenses		—			—			—		—			—			0.01			—
Non-core expenses^(1)(2)(3)(4)		(0.01	)		0.01			—		—			0.01			—			0.07
Tax on adjustments		—			—			—		—			0.03			—			(0.02	)
Adjusted Diluted Earnings Per Common Share – Non-GAAP	$	0.98		$	0.99		$	0.98	$	0.94		$	1.00		$	3.89		$	3.47

⁽¹⁾Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs
⁽³⁾ Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale
⁽⁴⁾ Non-core expenses in the Twelve Months Ended December 31, 2024 included $2.4 million from duplicative online banking conversion costs, $1.1 million from the FDIC special assessment, and $0.8 million of costs directly related to the branch sale

NET INTEREST MARGIN (FTE) – NON-GAAP
(Dollars in Thousands)
	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2025			2025			2025			2025			2024			2025			2024
Net Interest Income (GAAP)	$	139,064		$	133,665		$	133,014		$	130,270		$	134,370		$	536,013		$	521,114
Fully Taxable Equivalent (“FTE”) Adjustment		6,185			6,209			6,199			6,127			5,788			24,720			23,326
Net Interest Income (FTE) (Non-GAAP)	$	145,249		$	139,874		$	139,213		$	136,397		$	140,158		$	560,733		$	544,440

Average Earning Assets (GAAP)	$	17,648,233		$	17,282,901		$	17,158,984		$	16,960,475		$	17,089,198		$	17,264,588		$	17,054,267
Net Interest Margin (GAAP)		3.15	%		3.09	%		3.10	%		3.07	%		3.15	%		3.10	%		3.06	%
FTE Adjustment		0.14	%		0.15	%		0.15	%		0.15	%		0.13	%		0.15	%		0.13	%
Net Interest Margin (FTE) (Non-GAAP)		3.29	%		3.24	%		3.25	%		3.22	%		3.28	%		3.25	%		3.19	%

RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
(Dollars In Thousands)	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2025			2025			2025			2025			2024			2025			2024
Total Average Stockholders’ Equity (GAAP)	$	2,452,005		$	2,367,971		$	2,340,010		$	2,340,874		$	2,312,270		$	2,375,500		$	2,252,491
Less: Average Preferred Stock		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)
Less: Average Intangible Assets, Net of Tax		(723,466	)		(724,619	)		(725,813	)		(726,917	)		(728,218	)		(725,193	)		(730,295	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,703,414		$	1,618,227		$	1,589,072		$	1,588,832		$	1,558,927		$	1,625,182		$	1,497,071

Net Income Available to Common Stockholders (GAAP)	$	56,596		$	56,297		$	56,363		$	54,870		$	63,880		$	224,126		$	199,527
Plus: Intangible Asset Amortization, Net of Tax		1,183			1,185			1,188			1,206			1,399			4,762			5,744
Tangible Net Income (Non-GAAP)	$	57,779		$	57,482		$	57,551		$	56,076		$	65,279		$	228,888		$	205,271

Return on Tangible Common Equity (Non-GAAP)		13.57	%		14.21	%		14.49	%		14.12	%		16.75	%		14.08	%		13.71	%

EFFICIENCY RATIO – NON-GAAP
(Dollars In Thousands)	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2025			2025			2025			2025			2024			2025			2024
Noninterest Expense (GAAP)	$	99,522		$	96,561		$	93,598		$	92,902		$	96,289		$	382,583		$	379,266
Less: Intangible Asset Amortization		(1,498	)		(1,499	)		(1,505	)		(1,526	)		(1,771	)		(6,028	)		(7,271	)
Less: OREO and Foreclosure Expenses		(775	)		(121	)		(29	)		(600	)		(227	)		(1,525	)		(2,076	)
Adjusted Noninterest Expense (Non-GAAP)	$	97,249		$	94,941		$	92,064		$	90,776		$	94,291		$	375,030		$	369,919

Net Interest Income (GAAP)	$	139,064		$	133,665		$	133,014		$	130,270		$	134,370		$	536,013		$	521,114
Plus: Fully Taxable Equivalent Adjustment		6,185			6,209			6,199			6,127			5,788			24,720			23,326
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)	$	145,249		$	139,874		$	139,213		$	136,397		$	140,158		$	560,733		$	544,440

Noninterest Income (GAAP)	$	33,106		$	32,477		$	31,303		$	30,048		$	42,742		$	126,934		$	125,580
Less: Investment Securities (Gains) Losses		—			—			1			7			11,592			8			20,757
Adjusted Noninterest Income (Non-GAAP)	$	33,106		$	32,477		$	31,304		$	30,055		$	54,334		$	126,942		$	146,337
Adjusted Revenue (Non-GAAP)	$	178,355		$	172,351		$	170,517		$	166,452		$	194,492		$	687,675		$	690,777
Efficiency Ratio (Non-GAAP)		54.52	%		55.09	%		53.99	%		54.54	%		48.48	%		54.54	%		53.55	%

Adjusted Noninterest Expense (Non-GAAP)	$	97,249		$	94,941		$	92,064		$	90,776		$	94,291		$	375,030		$	369,919
Less: Acquisition-related Expenses		(524	)		(276	)		—			—			—			(800	)		—
Less: Non-core Expenses^(1)(2)(3)(4)		743			(633	)		—			—			(762	)		110			(4,243	)
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP)	$	97,468		$	94,032		$	92,064		$	90,776		$	93,529		$	374,340		$	365,676

Adjusted Revenue (Non-GAAP)	$	178,355		$	172,351		$	170,517		$	166,452		$	194,492		$	687,675		$	690,777
Less: Gain on Branch Sale		—			—			—			—			(19,983	)		—			(19,983	)
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)	$	178,355		$	172,351		$	170,517		$	166,452		$	174,509		$	687,675		$	670,794
Adjusted Efficiency Ratio (Non-GAAP)		54.65	%		54.56	%		53.99	%		54.54	%		53.60	%		54.44	%		54.51	%

⁽¹⁾ Non-core expenses in the Three Months Ended December 31, 2025 included a $0.7 million reduction in the FDIC special assessment
⁽²⁾ Non-core expenses in the Three Months Ended September 30, 2025 included $0.6 million of severance costs
⁽³⁾ Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale
⁽⁴⁾ Non-core expenses in the Twelve Months Ended December 31, 2024 included $2.4 million from duplicative online banking conversion costs, $1.1 million from the FDIC special assessment, and $0.8 million of costs directly related to the branch sale

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com