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The significant accounting policies used by the Company in the preparation of the condensed consolidated financial statements are summarized below.

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate clients primarily located in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit productions offices throughout the country through its banking subsidiary, Enterprise Bank & Trust.

Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2026. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.

Basis of Financial Statement Presentation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. Except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated.

In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the statements of financial position, results of operations, and cash flow for the interim periods.

Recent Accounting Pronouncements

FASB ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 was issued in November 2024 to require public business entities to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. The amendments in this update improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments may be adopted prospectively or retrospectively. The Company is evaluating the accounting and disclosure requirements of ASU 2024-03 and does not expect them to have a material effect on the Company’s consolidated financial statements.

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FASB ASU 2025-09, Hedge Accounting Improvements. ASU 2025-09 was issued in November 2025 and is intended to better enable entities to achieve and maintain hedge accounting for highly effective economic hedges, while reducing the occurrence of missed forecasted transactions and unintuitive hedge designation events. ASU 2025-09 updated the following five areas in the hedge accounting model: 1) Similar risk assessment for cash flow hedges, 2) Hedging interest payments on choose-your-rate debt, 3) Cash flow hedges of nonfinancial forecasted transactions, 4) Net written options as hedging instruments, 5) Foreign currency-denominated debt designated as a hedging instrument and a hedged item. The amendments in this update are effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The amendments should be applied on a prospective basis. The Company is evaluating the accounting and disclosure requirements of ASU 2025-09 and does not expect them to have a material effect on the Company’s consolidated financial statements.

FASB ASU 2026-02, Environmental Credits and Environmental Credit Obligations. ASU 2026-02 was issued in May 2026 and introduces a comprehensive model that establishes recognition, measurement, presentation, and disclosure requirements for 1) environmental credits, and 2) compliance obligations that may be settled by using environmental credits. The amendments in this update are effective for annual and interim periods beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption. The Company is evaluating the accounting and disclosure requirements of ASU 2026-02 and does not expect them to have a material effect on the Company’s consolidated financial statements.

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

The following table presents a summary of per common share data and amounts for the periods indicated:

			Three months ended June 30,												Six months ended June 30,
(in thousands, except per share data)			2026						2025						2026						2025
Net income available to common stockholders			$	39,990					$	50,447					$	88,414					$	99,470
Weighted average common shares outstanding			36,438						36,963						36,671						36,967
Additional dilutive common stock equivalents			258						209						255						257
Weighted average common diluted shares outstanding			36,696						37,172						36,926						37,224
Basic earnings per common share:			$	1.10					$	1.36					$	2.41					$	2.69
Diluted earnings per common share:			1.09						1.36						2.39						2.67

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The following tables present the amortized cost, gross unrealized gains and losses, ACL and fair value of securities available-for-sale and held-to-maturity as of the periods indicated:

			June 30, 2026
($ in thousands)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises			$	124,177					$	7					$	(4,316)					$	119,868
Obligations of states and political subdivisions			637,300						4,070						(57,999)						583,371
Agency mortgage-backed securities			2,004,677						3,500						(46,367)						1,961,810
U.S. Treasury bills			111,204						—						(146)						111,058
Corporate debt securities			19,447						217						(46)						19,618
Total securities available-for-sale			$	2,896,805					$	7,794					$	(108,874)					$	2,795,725
Held-to-maturity securities:
Obligations of states and political subdivisions			$	889,657					$	7,742					$	(39,430)					$	857,969
Agency mortgage-backed securities			36,484						—						(3,219)						33,265
Corporate debt securities			110,489						352						(3,608)						107,233
Total securities held-to-maturity			$	1,036,630					$	8,094					$	(46,257)					$	998,467
ACL			(153)
Total securities held-to-maturity, net			$	1,036,477

			December 31, 2025
($ in thousands)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises			$	187,587					$	76					$	(5,091)					$	182,572
Obligations of states and political subdivisions			626,900						3,914						(58,109)						572,705
Agency mortgage-backed securities			1,733,003						12,638						(36,330)						1,709,311
U.S. Treasury Bills			171,355						128						(499)						170,984
Corporate debt securities			19,448						109						(94)						19,463
Total securities available-for-sale			$	2,738,293					$	16,865					$	(100,123)					$	2,655,035
Held-to-maturity securities:
Obligations of states and political subdivisions			$	920,199					$	10,861					$	(39,849)					$	891,211
Agency mortgage-backed securities			43,839						—						(3,199)						40,640
Corporate debt securities			111,064						325						(3,426)						107,963
Total securities held-to-maturity			$	1,075,102					$	11,186					$	(46,474)					$	1,039,814
ACL			(145)
Total securities held-to-maturity, net			$	1,074,957

The balance of held-to-maturity securities in the “Amortized Cost” column in the tables above include a cumulative net unamortized, unrealized gain of $6.1 million and $7.6 million at June 30, 2026 and December 31, 2025, respectively. Such amounts are amortized over the remaining life of the securities.

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At June 30, 2026 and December 31, 2025, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities of $1.6 billion and $1.7 billion at June 30, 2026 and December 31, 2025, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions, in addition to collateral securing borrowing bases with the FHLB and the Federal Reserve.

The amortized cost and estimated fair value of debt securities at June 30, 2026, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately five years.

			Available-for-sale												Held-to-maturity
($ in thousands)			Amortized Cost						Estimated Fair Value						Amortized Cost						Estimated Fair Value
Due in one year or less			$	151,382					$	150,785					$	12,153					$	12,032
Due after one year through five years			20,369						20,192						132,052						129,111
Due after five years through ten years			410,763						366,967						266,607						262,876
Due after ten years			309,614						295,971						589,335						561,183
Agency mortgage-backed securities			2,004,677						1,961,810						36,483						33,265
			$	2,896,805					$	2,795,725					$	1,036,630					$	998,467

The following tables present a summary of available-for-sale investment securities in an unrealized loss position as of the periods indicated:

			June 30, 2026
			Less than 12 months												12 months or more												Total
($ in thousands)			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Obligations of U.S. Government-sponsored enterprises			$	50,231					$	542					$	54,233					$	3,774					$	104,464					$	4,316
Obligations of states and political subdivisions			28,419						324						376,154						57,675						404,573						57,999
Agency mortgage-backed securities			1,102,768						10,752						314,085						35,615						1,416,853						46,367
U.S. Treasury bills			101,923						139						4,992						7						106,915						146
Corporate debt securities			—						—						3,454						46						3,454						46
			$	1,283,341					$	11,757					$	752,918					$	97,117					$	2,036,259					$	108,874
			December 31, 2025
			Less than 12 months												12 months or more												Total
($ in thousands)			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Obligations of U.S. Government-sponsored enterprises			$	13,971					$	22					$	149,230					$	5,069					$	163,201					$	5,091
Obligations of states and political subdivisions			32,658						245						425,879						57,864						458,537						58,109
Agency mortgage-backed securities			266,639						1,215						377,787						35,115						644,426						36,330
U.S. Treasury bills			4,996						—						40,418						499						45,414						499
Corporate debt securities			—						—						3,406						94						3,406						94
			$	318,264					$	1,482					$	996,720					$	98,641					$	1,314,984					$	100,123

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The unrealized losses at both June 30, 2026 and December 31, 2025 were attributable primarily to changes in market interest rates after the securities were purchased. At each of June 30, 2026 and December 31, 2025, the Company did not have an ACL on available-for-sale securities.

Accrued interest on held-to-maturity debt securities totaled $11.3 million and $12.3 million at June 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. The ACL on held-to-maturity securities was $0.2 million at June 30, 2026 and $0.1 million at December 31, 2025.

The Company sold $180.4 million of available-for-sale securities during the three and six months ended June 30, 2026 for a pre-tax loss of approximately $6 million. The loss was partially offset by a pre-tax gain of approximately $4 million from the sale of Visa Class B-1 common stock that the Company held at a zero book value, resulting in a net loss of $2.1 million. The Company sold $9.5 million of available-for-sale securities during the six months ended June 30, 2025 for a gain of $0.1 million. There were no sales of available-for-sales securities during the three months ended June 30, 2025.

Other Investments

At June 30, 2026 and December 31, 2025, other investments totaled $128.6 million and $80.9 million, respectively, and includes investments in FHLB and Federal Reserve capital stock. As a member of the FHLB, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $19.4 million at June 30, 2026 and $9.4 million at December 31, 2025 is recorded at cost, which represents redemption value, and is included in “Other investments” in the Consolidated Balance Sheets.

On May 26, 2026, the Bank became a member bank of the Federal Reserve. As a member, the Bank is required to maintain a minimum investment in capital stock with the Federal Reserve. The Federal Reserve capital stock of $33.9 million at June 30, 2026 is recorded at cost, which represents redemption value, and is included in “Other investments” in the Consolidated Balance Sheets. This investment represents 50% of the par value due to the Federal Reserve Bank to become a member bank and the stock cannot be sold, traded, or pledged as collateral for loans. Although the probability is remote, the remaining 50% or $33.9 million due to the Federal Reserve Bank may be callable at its discretion.

The remaining amounts in other investments primarily include investments in Small Business Investment Companies, Community Development Financial Institutions, private equity investments, and the Company’s investment in unconsolidated trusts used to issue trust preferred securities to third parties.

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The following table presents a summary of loans by category:

($ in thousands)			June 30, 2026						December 31, 2025
C&I			$	5,263,245					$	5,236,473
Real estate loans:
Commercial - investor owned			3,107,205						2,986,906
Commercial - owner occupied			2,444,781						2,460,761
Construction and land development			665,729						689,357
Residential			360,686						367,127
Total real estate loans			6,578,401						6,504,151
Consumer			53,350						60,469
Loans, before unearned loan fees			11,894,996						11,801,093
Unearned loan fees, net			(2,597)						(755)
Loans, including unearned loan fees			$	11,892,399					$	11,800,338

The loan balance includes a net premium on acquired loans of $1.5 million and $0.2 million at June 30, 2026 and December 31, 2025, respectively. At June 30, 2026 and December 31, 2025, loans and securities of $5.9 billion and $6.3 billion, respectively, were pledged to the FHLB and the Federal Reserve.

Accrued interest totaled $58.7 million and $58.3 million at June 30, 2026 and December 31, 2025, respectively, and was reported in “Other assets” on the Consolidated Balance Sheets.

The Company sold the guaranteed portion of SBA 7(a) loans of $25.4 million resulting in a gain of $1.4 million during the six months ended June 30, 2026. There were no sales in the three months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company sold the guaranteed portion of SBA 7(a) loans of $24.4 million and $55.7 million, respectively. A gain on sale of $1.2 million and $3.0 million was recognized during the three and six months ended June 30, 2025, respectively.

The Company had $0.2 million of consumer mortgage loans secured by residential real estate in process of foreclosure at June 30, 2026 and December 31, 2025, respectively.

The following table presents a summary of the activity, by loan category, in the ACL on loans for the three and six months ended June 30, 2026 and 2025 as follows:

($ in thousands)			C&I						CRE - investor owned						CRE - owner occupied						Construction and land development						Residential real estate						Consumer						Total
ACL on loans:
Balance at March 31, 2026			$	73,110					$	31,187					$	18,069					$	10,602					$	7,423					$	1,673					$	142,064
Provision (benefit) for credit losses			16,550						(6,839)						50						1,883						(804)						(111)						10,729
Charge-offs			(14,377)						(20)						(453)						(787)						—						(161)						(15,798)
Recoveries			1,752						58						20						5						352						56						2,243
Balance at June 30, 2026			$	77,035					$	24,386					$	17,686					$	11,703					$	6,971					$	1,457					$	139,238

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($ in thousands)			C&I						CRE - investor owned						CRE - owner occupied						Construction and land development						Residential real estate						Consumer						Total
ACL on loans:
Balance at December 31, 2025			$	68,345					$	31,565					$	19,218					$	11,016					$	8,023					$	1,855					$	140,022
Provision (benefit) for credit losses			24,823						(7,251)						(1,129)						2,497						(1,399)						(363)						17,178
Charge-offs			(18,044)						(20)						(453)						(1,826)						(355)						(317)						(21,015)
Recoveries			1,911						92						50						16						702						282						3,053
Balance at June 30, 2026			$	77,035					$	24,386					$	17,686					$	11,703					$	6,971					$	1,457					$	139,238

($ in thousands)			C&I						CRE - investor owned						CRE - owner occupied						Construction and land development						Residential real estate						Consumer												Total
ACL on loans:
Balance at March 31, 2025			$	69,887					$	30,551					$	18,360					$	12,114					$	7,744					$	4,288											$	142,944
Provision (benefit) for credit losses			1,748						(404)						(111)						991						974						(379)												2,819
Charge-offs			(2,422)						—						(672)						(146)						(369)						(188)												(3,797)
Recoveries			2,868						42						66						5						135						51												3,167
Balance at June 30, 2025			$	72,081					$	30,189					$	17,643					$	12,964					$	8,484					$	3,772											$	145,133

($ in thousands)			C&I						CRE - investor owned						CRE - owner occupied						Construction and land development						Residential real estate						Consumer												Total
ACL on loans:
Balance at December 31, 2024			$	63,231					$	34,217					$	20,400					$	9,837					$	6,534					$	3,731											$	137,950
Provision (benefit) for credit losses			7,496						(4,155)						(2,077)						3,255						2,030						205												6,754
Charge-offs			(3,013)						—						(1,034)						(146)						(594)						(295)												(5,082)
Recoveries			4,367						127						354						18						514						131												5,511
Balance at June 30, 2025			$	72,081					$	30,189					$	17,643					$	12,964					$	8,484					$	3,772											$	145,133

The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model: Moody’s baseline, a stronger near-term growth upside and a moderate downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $10.2 million to the ACL on loans over the baseline model at June 30, 2026. The forecasts consider macroeconomic risks to the loan portfolio, such as the conflict in Iran, among others. The Company has also recognized various risks posed by loans in certain segments, including the commercial office sector, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation (including the impact of tariffs), tightening in the credit markets, and weakness in the financial system.

In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the discounted cash flow method model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters, pandemics and geopolitical matters. At June 30, 2026, the ACL on loans included a qualitative adjustment of approximately $45.8 million. Of this amount, approximately $26.1 million was allocated to sponsor finance loans due to their mostly unsecured nature.

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The following tables present gross charge-offs by year of origination and loan class for the periods indicated:

						Six months ended June 30, 2026
						Term Loans by Origination Year
($ in thousands)						2026						2025						2024						2023						2022												Prior						Revolving Loans Converted to Term Loans						Revolving Loans						Total
C&I						$	66					$	19					$	1,206					$	4,551					$	10,082											$	47					$	93					$	1,595					$	17,659
Real estate:
Commercial - investor owned						—						—						—						—						—												20						—						—						20
Commercial - owner occupied						—						—						—						—						328												125						—						—						453
Construction and land development						—						—						—						—						33												1,793						—						—						1,826
Residential						—						355						—						—						—												—						—						—						355
Consumer						11						26						—						—						—												6						7						—						50
Total charge-offs by origination year						$	77					$	400					$	1,206					$	4,551					$	10,443											$	1,991					$	100					$	1,595					$	20,363
Total gross charge-offs by performing status																																																												652
Total gross charge-offs																																																												$	21,015

						Twelve months ended December 31, 2025
						Term Loans by Origination Year
($ in thousands)						2025						2024						2023						2022						2021						Prior						Revolving Loans Converted to Term Loans						Revolving Loans						Total
C&I						$	30					$	2,159					$	4,661					$	1,280					$	35					$	1,167					$	1,651					$	11,870					$	22,853
Real estate:
Commercial - investor owned						—						—						—						—						3,972						—						—						—						3,972
Commercial - owner occupied						—						594						285						—						284						898						—						—						2,061
Construction and land development						—						—						—						146						—						3,135						—						—						3,281
Residential						—						—						—						—						—						646						266						—						912
Consumer						—						—						—						—						177						68						5						—						250
Total charge-offs by origination year						$	30					$	2,753					$	4,946					$	1,426					$	4,468					$	5,914					$	1,922					$	11,870					$	33,329
Total gross charge-offs by performing status																																																						1,187
Total gross charge-offs																																																						$	34,516

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The following tables present the recorded balance in nonperforming loans by category, excluding government guaranteed balances as of the dates indicated:

			June 30, 2026
($ in thousands)			Nonaccrual												Loans over 90 days past due and still accruing interest						Total nonperforming loans						Nonaccrual loans with no allowance
C&I			$	19,996											$	85					$	20,081					$	1,174
Real estate:
Commercial - investor owned			42,101												—						42,101						40,670
Commercial - owner occupied			9,176												—						9,176						5,560
Construction and land development			384												—						384						—
Residential			4,301												100						4,401						4,061
Consumer			—												1						1						—
Total			$	75,958											$	186					$	76,144					$	51,465

			December 31, 2025
($ in thousands)			Nonaccrual												Loans over 90 days past due and still accruing interest						Total nonperforming loans						Nonaccrual loans with no allowance
C&I			$	26,359											$	1,620					$	27,979					$	14,800
Real estate:
Commercial - investor owned			36,988												—						36,988						23,685
Commercial - owner occupied			9,338												—						9,338						7,927
Construction and land development			155												—						155						—
Residential			8,340												—						8,340						8,099
Consumer			—												9						9						—
Total			$	81,180											$	1,629					$	82,809					$	54,511

The nonperforming loan balances at June 30, 2026 and December 31, 2025 exclude government guaranteed balances of $40.7 million and $28.9 million, respectively. Interest income recognized on nonaccrual loans was immaterial during the three and six months ended June 30, 2026 and 2025.

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The following tables present a summary of collateral-dependent nonperforming loans by class of loan as of the dates indicated:

			June 30, 2026
			Type of Collateral
($ in thousands)			CRE						Residential Real Estate						Blanket Lien						Other
C&I			$	—					$	753					$	5,959					$	156
Real estate:
Commercial - investor owned			39,621						—						—						—
Commercial - owner occupied			2,910						—						—						—
Residential			—						4,088						—						—
Total			$	42,531					$	4,841					$	5,959					$	156

			December 31, 2025
			Type of Collateral
($ in thousands)			CRE						Residential Real Estate						Blanket Lien						Other
C&I			$	—					$	19					$	3,391					$	15,644
Real estate:
Commercial - investor owned			35,701						—						—						—
Commercial - owner occupied			4,610						456						—						—
Residential			—						8,099						—						—
Total			$	40,311					$	8,574					$	3,391					$	15,644

The following tables present a summary of aging of the recorded balance in past due loans by class and category as of the dates indicated:

			June 30, 2026
($ in thousands)			30-89 Days  Past Due						90 or More Days Past Due						Total Past Due						Current						Total
C&I			$	25,713					$	14,389					$	40,102					$	5,223,143					$	5,263,245
Real estate:
Commercial - investor owned			42,257						41,915						84,172						3,023,033						3,107,205
Commercial - owner occupied			30,871						21,273						52,144						2,392,637						2,444,781
Construction and land development			1,484						—						1,484						664,245						665,729
Residential			3,235						5,051						8,286						352,400						360,686
Consumer			84						1						85						53,265						53,350
Loans, before unearned loan fees			$	103,644					$	82,629					$	186,273					$	11,708,723					$	11,894,996
Unearned loan fees, net																											(2,597)
Total																											$	11,892,399

---

			December 31, 2025
($ in thousands)			30-89 Days  Past Due						90 or More Days Past Due						Total Past Due						Current						Total
C&I			$	6,822					$	25,327					$	32,149					$	5,204,324					$	5,236,473
Real estate:
Commercial - investor owned			3,627						38,063						41,690						2,945,216						2,986,906
Commercial - owner occupied			5,274						21,110						26,384						2,434,377						2,460,761
Construction and land development			4,881						583						5,464						683,893						689,357
Residential			7,457						2,516						9,973						357,154						367,127
Consumer			57						9						66						60,403						60,469
Loans, before unearned loan fees			$	28,118					$	87,608					$	115,726					$	11,685,367					$	11,801,093
Unearned loan fees, net																											(755)
Total																											$	11,800,338

The ACL on loans incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the ACL on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default and loss given default model to determine the ACL on loans.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans because of the measurement methodologies used to estimate the allowance.

The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL on loans.

In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction or principal forgiveness, may be granted.

---

The following tables show the recorded balance at the end of the dates listed for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:

			Three months ended
			Term Extension																		Term Extension and Rate Reduction												Total
($ in thousands)			June 30, 2026						Percent of Total Loan Class																		June 30, 2026						Percent of Total Loan Class						June 30, 2026						Percent of Total Loan Class
C&I			$	26,768					0.51		%																$	4,082					0.08		%				$	30,850					0.59		%
Real estate:
Commercial - owner occupied			—						—		%																227						0.01		%				227						0.01		%
Total			$	26,768																							$	4,309											$	31,077

			Six months ended
			Term Extension												Payment Delay												Term Extension and Rate Reduction												Total
($ in thousands)			June 30, 2026						Percent of Total Loan Class						June 30, 2026						Percent of Total Loan Class						June 30, 2026						Percent of Total Loan Class						June 30, 2026						Percent of Total Loan Class
Commercial and industrial			$	33,311					0.63		%				$	5,855					0.11		%				$	4,082					0.08		%				$	43,248					0.82		%
Real estate:
Commercial - owner occupied			4,715						0.19		%				—						—		%				227						0.01		%				4,942						0.20		%
Construction and land development			1,996						0.30		%				—						—		%				—						—		%				1,996						0.30		%
Total			$	40,022											$	5,855											$	4,309											$	50,186

			Three months ended												Six months ended
			Term Extension												Term Extension
($ in thousands)			June 30, 2025						Percent of Total Loan Class						June 30, 2025						Percent of Total Loan Class
C&I			$	41,002					0.84		%				$	44,211					0.91		%
Real estate:
Commercial - owner occupied			228						0.01		%				5,074						0.22		%
Residential			—						—		%				23						0.01		%
Total			41,230												$	49,308

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The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty by class and modification type outstanding at the date indicated:

						Three months ended June 30, 2026
						Financial Effect
Term Extension and Rate Reduction
C&I						Maturity dates were extended for a weighted average of 20 months and rates were reduced by a weighted average of 0.65%.
Real estate:
Commercial - owner occupied						Maturity dates were extended for a weighted average of 12 months and rates were reduced by a weighted average of 0.96%.
Term Extension
C&I						Maturity dates were extended for a weighted average of 10 months.

						Six months ended June 30, 2026
($ in thousands)						Financial Effect
Term Extension and Rate Reduction
C&I						Maturity dates were extended for a weighted average of 20 months and rates were reduced by a weighted average of 0.65%.
Real estate:
Commercial - owner occupied						Maturity dates were extended for a weighted average of 12 months and rates were reduced by a weighted average of 0.96%.
Payment Delay
C&I						Payments were delayed for a weighted average amount of $500.
Term Extension
C&I						Maturity dates were extended for a weighted average of 9 months.
Real estate:
Commercial - owner occupied						Maturity dates were extended for a weighted average of 3 months.
Construction and land development						Maturity dates were extended for a weighted average of 4 months.

						Three months ended June 30, 2025
						Financial Effect
Term Extension
C&I						Maturity dates were extended for a weighted average of 6 months.
Real estate:
Commercial - owner occupied						Maturity dates were extended for a weighted average of 5 months.

						Six months ended June 30, 2025
						Financial Effect
Term Extension
C&I						Maturity dates were extended for a weighted average of 6 months.
Real estate:
Commercial - owner occupied						Maturity dates were extended for a weighted average of 17 months.
Residential						Maturity dates were extended for a weighted average of 3 months.

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The following tables present the aging of the recorded balance of modified loans in the last 12 months by class at the date indicated:

			June 30, 2026
($ in thousands)			Current						30-89 Days  Past Due						90 or More Days Past Due						Total
C&I			$	47,461					$	—					$	—					$	47,461
Real estate:
Commercial - investor owned			237						—						—						237
Commercial - owner occupied			15,097						—						—						15,097
Construction and land development			1,996						—						—						1,996
Total			$	64,791					$	—					$	—					$	64,791

			June 30, 2025
($ in thousands)			Current												30-89 Days  Past Due						90 or More Days Past Due						Total
C&I			$	51,352											$	—					$	818					$	52,170
Real estate:
Commercial - investor owned			249												—						—						249
Commercial - owner occupied			16,690												228						—						16,918
Residential			—												23						—						23
Total			$	68,291											$	251					$	818					$	69,360

There were no loans that experienced a default during the three and six months ended June 30, 2026 or June 30, 2025, respectively, subsequent to being granted a modification in the preceding twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off.

As of June 30, 2026 and December 31, 2025, the Company allocated an immaterial amount in specific reserves to loans that have been restructured.

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The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

•Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.

•Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.

•Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.

•Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.

•Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.

•Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.

•Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.

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The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:

						June 30, 2026
						Term Loans by Origination Year
($ in thousands)						2026						2025						2024						2023						2022						Prior						Revolving Loans Converted to Term Loans						Revolving Loans						Total
C&I
Pass (1-6)						$	853,318					$	1,516,435					$	535,013					$	341,400					$	225,339					$	131,920					$	147,439					$	1,152,595					$	4,903,459
Special Mention (7)						22,813						35,952						9,853						7,964						8,074						3,852						15,836						54,743						159,087
Classified (8-9)						39,698						4,275						13,045						4,094						10,488						1,898						35,488						44,493						153,479
Total C&I						$	915,829					$	1,556,662					$	557,911					$	353,458					$	243,901					$	137,670					$	198,763					$	1,251,831					$	5,216,025
CRE-investor owned
Pass (1-6)						$	568,421					$	682,692					$	348,752					$	328,794					$	347,486					$	523,577					$	26,912					$	48,639					$	2,875,273
Special Mention (7)						41,088						9,014						37,389						3,593						—						15,167						44,385						—						150,636
Classified (8-9)						1,258						17,956						1,948						1,900						6,881						32,601						—						—						62,544
Total CRE-investor owned						$	610,767					$	709,662					$	388,089					$	334,287					$	354,367					$	571,345					$	71,297					$	48,639					$	3,088,453
CRE-owner occupied
Pass (1-6)						$	278,247					$	398,416					$	265,230					$	260,992					$	315,898					$	670,308					$	12,688					$	34,216					$	2,235,995
Special Mention (7)						11,692						21,436						5,876						10,542						7,060						37,723						—						—						94,329
Classified (8-9)						10,734						10,346						2,965						15,163						19,188						38,053						227						—						96,676
Total CRE-owner occupied						$	300,673					$	430,198					$	274,071					$	286,697					$	342,146					$	746,084					$	12,915					$	34,216					$	2,427,000
Construction real estate
Pass (1-6)						$	175,727					$	254,623					$	158,957					$	15,169					$	4,776					$	3,161					$	33,601					$	4,723					$	650,737
Special Mention (7)						—						—						—						1,129						470						—						6,998						—						8,597
Classified (8-9)						1,996						—						1,405						384						361						—						—						—						4,146
Total Construction real estate						$	177,723					$	254,623					$	160,362					$	16,682					$	5,607					$	3,161					$	40,599					$	4,723					$	663,480
Residential real estate
Pass (1-6)						$	37,206					$	41,608					$	21,297					$	28,050					$	25,026					$	98,126					$	1,082					$	92,722					$	345,117
Special Mention (7)						134						962						—						22						—						838						337						733						3,026
Classified (8-9)						—						1,599						—						2,655						—						8,251						—						134						12,639
Total residential real estate						$	37,340					$	44,169					$	21,297					$	30,727					$	25,026					$	107,215					$	1,419					$	93,589					$	360,782
Consumer
Pass (1-6)						$	521					$	1,162					$	544					$	682					$	177					$	36,681					$	586					$	8,715					$	49,068
Special Mention (7)						—						—						—						—						—						521						—						—						521
Classified (8-9)						—						14						19						—						—						3						—						—						36
Total Consumer						$	521					$	1,176					$	563					$	682					$	177					$	37,205					$	586					$	8,715					$	49,625
Total loans classified by risk category						$	2,042,853					$	2,996,490					$	1,402,293					$	1,022,533					$	971,224					$	1,602,680					$	325,579					$	1,441,713					$	11,805,365
Total loans classified by performing status																																																						87,034
Total loans																																																						$	11,892,399

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						December 31, 2025
						Term Loans by Origination Year
($ in thousands)						2025						2024						2023						2022						2021						Prior						Revolving Loans Converted to Term Loans						Revolving Loans						Total
C&I
Pass (1-6)						$	1,867,472					$	793,869					$	521,429					$	298,735					$	84,618					$	96,374					$	94,043					$	1,153,331					$	4,909,871
Special Mention (7)						17,000						22,548						26,475						3,835						4,871						2,113						22,071						48,303						147,216
Classified (8-9)						47,637						26,370						4,861						10,964						54						845						24,043						36,659						151,433
Total C&I						$	1,932,109					$	842,787					$	552,765					$	313,534					$	89,543					$	99,332					$	140,157					$	1,238,293					$	5,208,520
CRE-investor owned
Pass (1-6)						$	857,292					$	405,208					$	380,247					$	377,479					$	287,917					$	376,426					$	55,616					$	45,784					$	2,785,969
Special Mention (7)						40,134						53,306						1,934						—						9,029						4,571						1,891						—						110,865
Classified (8-9)						17,570						—						—						6,965						26,697						20,469						—						—						71,701
Total CRE-investor owned						$	914,996					$	458,514					$	382,181					$	384,444					$	323,643					$	401,466					$	57,507					$	45,784					$	2,968,535
CRE-owner occupied
Pass (1-6)						$	471,422					$	304,147					$	296,817					$	371,117					$	364,894					$	445,806					$	3,391					$	38,545					$	2,296,139
Special Mention (7)						7,814						5,801						14,730						12,440						4,432						15,019						—						—						60,236
Classified (8-9)						18,006						5,562						11,444						15,503						13,671						22,281						—						—						86,467
Total CRE-owner occupied						$	497,242					$	315,510					$	322,991					$	399,060					$	382,997					$	483,106					$	3,391					$	38,545					$	2,442,842
Construction real estate
Pass (1-6)						$	372,006					$	223,449					$	37,889					$	9,492					$	3,398					$	1,316					$	24,961					$	3,148					$	675,659
Special Mention (7)						2,000						—						23						41						—						—						8,698						—						10,762
Classified (8-9)						—						—						483						676						—						4						—						—						1,163
Total Construction real estate						$	374,006					$	223,449					$	38,395					$	10,209					$	3,398					$	1,320					$	33,659					$	3,148					$	687,584
Residential real estate
Pass (1-6)						$	61,245					$	24,136					$	27,378					$	28,920					$	33,857					$	76,749					$	7,342					$	82,753					$	342,380
Special Mention (7)						3,157						1,219						23						296						84						793						—						976						6,548
Classified (8-9)						1,831						—						2,733						—						6,466						7,055						—						80						18,165
Total residential real estate						$	66,233					$	25,355					$	30,134					$	29,216					$	40,407					$	84,597					$	7,342					$	83,809					$	367,093
Consumer
Pass (1-6)						$	1,466					$	798					$	790					$	199					$	26,824					$	17,513					$	—					$	8,511					$	56,101
Special Mention (7)						—						—						—						—						—						—						—						—						—
Classified (8-9)						—						—						2						—						—						10						—						—						12
Total Consumer						$	1,466					$	798					$	792					$	199					$	26,824					$	17,523					$	—					$	8,511					$	56,113
Total loans classified by risk category						$	3,786,052					$	1,866,413					$	1,327,258					$	1,136,662					$	866,812					$	1,087,344					$	242,056					$	1,418,090					$	11,730,687
Total loans classified by performing status																																																						69,651
Total loans																																																						$	11,800,338

In the tables above, loan originations in 2026 and 2025 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years.

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The following tables summarize the risk category of the loans by loan type as of the dates indicated:

			June 30, 2026
($ in thousands)			Pass (1-6)						Special Mention (7)						Classified (8-9)						Total
C&I			$	4,903,459					$	159,087					$	153,479					$	5,216,025
Real estate:
Commercial - investor owned			2,875,273						150,636						62,544						3,088,453
Commercial - owner occupied			2,235,995						94,329						96,676						2,427,000
Construction and land development			650,737						8,597						4,146						663,480
Residential			345,117						3,026						12,639						360,782
Consumer			49,068						521						36						49,625
Total loans classified by risk category			$	11,059,649					$	416,196					$	329,520					$	11,805,365
Total loans classified by performing status																					87,034
																					$	11,892,399

			December 31, 2025
($ in thousands)			Pass (1-6)						Special Mention (7)						Classified (8-9)						Total
C&I			$	4,909,871					$	147,216					$	151,433					$	5,208,520
Real estate:
Commercial - investor owned			2,785,969						110,865						71,701						2,968,535
Commercial - owner occupied			2,296,139						60,236						86,467						2,442,842
Construction and land development			675,659						10,762						1,163						687,584
Residential			342,380						6,548						18,165						367,093
Consumer			56,101						—						12						56,113
Total loans classified by risk category			$	11,066,119					$	335,627					$	328,941					$	11,730,687
Total loans classified by performing status																					69,651
																					$	11,800,338

In the risk category tables above, guaranteed loan balances are included with a classification of “pass” due to the nature of these loans.

For certain loans, the Company evaluates credit quality based on the aging status. The following tables present the recorded balance of loans based on payment activity as of the dates indicated:

			June 30, 2026
($ in thousands)			Performing						Non Performing						Total
C&I			$	41,731					$	84					$	41,815
Real estate:
Commercial - investor owned			15,897						—						15,897
Commercial - owner occupied			25,506						—						25,506
Residential			564						—						564
Consumer			3,251						1						3,252
Total			$	86,949					$	85					$	87,034

---

			December 31, 2025
($ in thousands)			Performing						Non Performing						Total
C&I			$	22,778					$	318					$	23,096
Real estate:
Commercial - investor owned			16,323						—						16,323
Commercial - owner occupied			26,121						—						26,121
Residential			589						—						589
Consumer			3,513						9						3,522
Total			$	69,324					$	327					$	69,651

The Company issues financial instruments in the normal course of its business of meeting the financing needs of its clients. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets.

The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is not more than the contractual amount of these instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its Consolidated Balance Sheets.

The following table summarizes the contractual amounts of significant off-balance-sheet financial instruments as of the dates indicated:

($ in thousands)			June 30, 2026						December 31, 2025
Commitments to extend credit			$	3,075,581					$	2,866,028
Letters of credit			112,193						102,884

Off-Balance Sheet Credit Risk

Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at June 30, 2026 and December 31, 2025, $124.1 million and $124.9 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash obligations. The Company evaluates each client’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate. Other liabilities includes an ACL on unadvanced commitments of $8.5 million and $6.0 million at June 30, 2026 and December 31, 2025, respectively.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. These letters of credit are issued to support contractual obligations of the Company’s clients. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to clients. As of June 30, 2026, the approximate remaining terms of standby letters of credit range from one month to four years.

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Contingencies

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company does not enter into derivative financial instruments for trading purposes.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.

For hedges of the Company’s variable-rate loans, interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts and the Company making variable rate payments. The Company has executed cash flow hedges to reduce a portion of variability in cash flows on the Company’s prime- and SOFR-based loan portfolio. Select terms of the hedges are as follows:

($ in thousands)

Notional

Fixed Rate

Index

Effective Date

Maturity Date

$

50,000

6.56%

Prime

January 25, 2023

February 1, 2027

100,000

6.63%

Prime

December 20, 2022

January 1, 2028

100,000

6.66%

Prime

April 1, 2025

April 1, 2030

100,000

3.51%

1-month Term SOFR

April 17, 2026

May 1, 2031

100,000

3.69%

1-month Term SOFR

May 11, 2026

May 1, 2029

The Company has also executed interest rate collars to reduce a portion of variability in cash flows on the Company’s prime- and SOFR-based loan portfolio. These transactions are commonly referred to as zero cost collars, which involves the Company selling an interest rate cap where payments will be made when the index exceeds the cap rate, and the purchase of a floor where payments will be received if the index falls below the floor. Select terms of the collars are as follows:

($ in thousands)
Notional						Cap Rate						Floor Rate						Index						Maturity Date
$	100,000					8.14%						5.25%						Prime						October 1, 2029
50,000						4.21%						3.23%						1-month Term SOFR						November 1 2029

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At December 31, 2025, the Company had executed a series of cash flow hedges to fix the effective interest rate for payments due on $32.1 million of junior subordinated debentures to a weighted-average-fixed rate of 2.64%. These hedges matured in the first quarter 2026.

The gain or loss on derivatives designated and qualified as cash flow hedges of interest rate risk are recorded in accumulated other comprehensive income and subsequently reclassified into interest income or expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are paid on the Company’s variable-rate loans and debt. During the next twelve months, the Company estimates there will be $1.5 million reclassified as a decrease to interest income.

Non-designated Hedges

Derivatives not designated as hedges are not considered speculative and result from a service the Company provides to certain clients. The Company executes interest rate swaps with commercial banking clients to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client derivatives and the offsetting derivatives are recognized directly in earnings as a component of other noninterest income.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of the dates indicated:

			Notional Amount												Derivative Assets												Derivative Liabilities
($ in thousands)			June 30, 2026						December 31, 2025						June 30, 2026						December 31, 2025						June 30, 2026						December 31, 2025
Derivatives designated as hedging instruments
Interest rate swaps			$	450,000					$	282,064					$	—					$	1,876					$	3,432					$	—
Interest rate collar			150,000						150,000						—						498						411						—
Total			$	600,000					$	432,064					$	—					$	2,374					$	3,843					$	—
Derivatives not designated as hedging instruments
Interest rate swaps			$	944,818					$	878,278					$	9,359					$	10,110					$	9,371					$	10,114

Derivative assets are reported in “Other assets” on the Consolidated Balance Sheets. Derivative liabilities are reported in “Other liabilities” on the Consolidated Balance Sheets.

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The following tables present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The fair value table above provides the location of financial assets and liabilities presented on the Consolidated Balance Sheets.

As of June 30, 2026
																					Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)			Gross Amounts Recognized						Gross Amounts Offset in the Statement of Financial Position						Net Amounts of Assets presented in the Statement of Financial Position						Financial Instruments						Fair Value Collateral Posted						Net Amount
Assets:
Interest rate swaps			$	9,359					$	—					$	9,359					$	4,435					$	5,040					$	—
Liabilities:
Interest rate swaps			$	12,803					$	—					$	12,803					$	4,435					$	820					$	7,548
Interest rate collar			411						—						411						—						—						411
Securities sold under agreements to repurchase			171,963						—						171,963						—						171,963						—

As of December 31, 2025
																					Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)			Gross Amounts Recognized						Gross Amounts Offset in the Statement of Financial Position						Net Amounts of Assets presented in the Statement of Financial Position						Financial Instruments						Fair Value Collateral Posted						Net Amount
Assets:
Interest rate swaps			$	11,986					$	—					$	11,986					$	3,142					$	6,470					$	2,374
Interest rate collar			498						—						498						—						—						498
Liabilities:
Interest rate swaps			$	10,114					$	—					$	10,114					$	3,142					$	—					$	6,972
Securities sold under agreements to repurchase			292,782						—						292,782						—						292,782						—

As of June 30, 2026, the fair value of counterparty derivatives in a net liability position, which includes accrued interest related to these agreements was $9.6 million. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and posts collateral related to derivatives in a net liability position. The Company has received cash collateral from counterparties on derivatives that were in a net asset position as noted in the tables above.

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The following tables summarize financial instruments measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

 

			June 30, 2026
($ in thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total Fair Value
Assets
Securities available-for-sale
Obligations of U.S. Government-sponsored enterprises			$	—					$	119,868					$	—					$	119,868
Obligations of states and political subdivisions			—						583,371						—						583,371
Agency mortgage-backed securities			—						1,961,810						—						1,961,810
U.S. Treasury bills			—						111,058						—						111,058
Corporate debt securities			—						19,618						—						19,618
Total securities available-for-sale			—						2,795,725						—						2,795,725
Other investments			—						3,481						—						3,481
Derivative financial instruments			—						9,359						—						9,359
Total assets			$	—					$	2,808,565					$	—					$	2,808,565
Liabilities
Derivative financial instruments			$	—					$	13,214					$	—					$	13,214
Total liabilities			$	—					$	13,214					$	—					$	13,214

			December 31, 2025
($ in thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total Fair Value
Assets
Securities available-for-sale
Obligations of U.S. Government-sponsored enterprises			$	—					$	182,572					$	—					$	182,572
Obligations of states and political subdivisions			—						572,705						—						572,705
Agency mortgage-backed securities			—						1,709,311						—						1,709,311
U.S. Treasury bills			—						170,984						—						170,984
Corporate debt securities			—						19,463						—						19,463
Total securities available-for-sale			—						2,655,035						—						2,655,035
Other investments			—						3,148						—						3,148
Derivative financial instruments			—						12,484						—						12,484
Total assets			$	—					$	2,670,667					$	—					$	2,670,667
Liabilities
Derivative financial instruments			$	—					$	10,114					$	—					$	10,114
Total liabilities			$	—					$	10,114					$	—					$	10,114

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From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following tables present financial instruments and non-financial assets still held as of the reporting date measured at fair value on a non-recurring basis:

			June 30, 2026
($ in thousands)			Total Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Individually-evaluated loans			$	5,322					$	—					$	—					$	5,322
OREO			16,214						—						—						16,214
Total			$	21,536					$	—					$	—					$	21,536

			December 31, 2025
($ in thousands)			Total Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Individually-evaluated loans			$	2,200					$	—					$	—					$	2,200
OREO			81,544						—						—						81,544
Total			$	83,744					$	—					$	—					$	83,744

The following table is a summary of the carrying amounts and fair values of the Company’s financial instruments as of the dates presented:

			June 30, 2026																		December 31, 2025
($ in thousands)			Carrying Amount						Estimated fair value						Level						Carrying Amount						Estimated fair value						Level
Balance sheet assets
Securities held-to-maturity, net			$	1,036,477					$	998,467					Level 2						$	1,074,957					$	1,039,814					Level 2
Other investments			125,151						125,151						Level 2						77,737						77,737						Level 2
Loans held-for-sale			1,145						1,145						Level 2						928						928						Level 2
Loans, net			11,753,161						11,727,155						Level 3						11,660,316						11,622,939						Level 3
State tax credits, held-for-sale			10,422						10,951						Level 3						11,141						11,904						Level 3
Servicing asset			3,080						5,242						Level 2						3,021						4,733						Level 2
Balance sheet liabilities
Certificates of deposit			$	1,703,800					$	1,697,901					Level 3						$	1,669,383					$	1,665,449					Level 3
Subordinated debentures and notes			265,910						267,230						Level 2						93,688						92,093						Level 2
FHLB advances			208,000						208,000						Level 2						—						—						Level 2
Other borrowings			208,166						185,189						Level 2						387,717						364,901						Level 2

For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments refer to Note 17 – Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.

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Stockholders’ Equity

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss) after-tax by component:

Three months ended
($ in thousands)			Net Unrealized Loss on Available-for-Sale Securities						Unamortized Gain on Held-to-Maturity Securities						Net Unrealized Gain (Loss) on Cash Flow Hedges						Total
Balance, March 31, 2026			$	(87,087)					$	5,048					$	457					$	(81,582)
Net change			11,732						(524)						(3,336)						7,872
Balance, June 30, 2026			$	(75,355)					$	4,524					$	(2,879)					$	(73,710)
Balance, March 31, 2025			$	(109,327)					$	7,476					$	460					$	(101,391)
Net change			11,348						(607)						1,665						12,406
Balance, June 30, 2025			$	(97,979)					$	6,869					$	2,125					$	(88,985)
Six months ended
($ in thousands)			Net Unrealized Gain (Loss) on Available-for-Sale Debt Securities						Unamortized Gain on Held-to-Maturity Securities						Net Unrealized Gain (Loss) on Cash Flow Hedges						Total
Balance, December 31, 2025			$	(62,006)					$	5,641					$	1,778					$	(54,587)
Net change			(13,349)						(1,117)						(4,657)						(19,123)
Balance, June 30, 2026			$	(75,355)					$	4,524					$	(2,879)					$	(73,710)
Balance, December 31, 2024			$	(122,132)					$	8,088					$	(2,674)					$	(116,718)
Net change			24,153						(1,219)						4,799						27,733
Balance, June 30, 2025			$	(97,979)					$	6,869					$	2,125					$	(88,985)

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The following table presents the pre-tax and after-tax changes in the components of other comprehensive income (loss):

			Three months ended June 30,
			2026																		2025
($ in thousands)			Pre-tax						Tax effect						After-tax						Pre-tax						Tax effect						After-tax
Change in unrealized gain on available-for-sale securities			$	9,778					$	2,454					$	7,324					$	15,091					$	3,743					$	11,348
Reclassification of loss on sale of available-for-sale securities(a)			5,885						1,477						4,408						—						—						—
Reclassification of gain on held-to-maturity securities(a)			(702)						(178)						(524)						(807)						(200)						(607)
Change in unrealized gain (loss) on cash flow hedges			(4,549)						(1,142)						(3,407)						1,811						449						1,362
Reclassification of loss on cash flow hedges(b)			95						24						71						402						99						303
Total other comprehensive gain			$	10,507					$	2,635					$	7,872					$	16,497					$	4,091					$	12,406
			Six months ended June 30,
			2026																		2025
($ in thousands)			Pre-tax						Tax effect						After-tax						Pre-tax						Tax effect						After-tax
Change in unrealized gain (loss) on available-for-sale securities			$	(23,708)					$	(5,951)					$	(17,757)					$	32,225					$	7,992					$	24,233
Reclassification of (gain) loss on sale of available-for-sale securities(a)			5,885						1,477						4,408						(106)						(26)						(80)
Reclassification of gain on held-to-maturity securities(a)			(1,493)						(376)						(1,117)						(1,621)						(402)						(1,219)
Change in unrealized gain (loss) on cash flow hedges			(6,299)						(1,581)						(4,718)						5,791						1,436						4,355
Reclassification of loss on cash flow hedges(b)			82						21						61						590						146						444
Total other comprehensive gain (loss)			$	(25,533)					$	(6,410)					$	(19,123)					$	36,879					$	9,146					$	27,733
(a)The pre-tax amount is reported in noninterest income/expense in the Consolidated Statements of Income.
(b)The pre-tax amount is reported in interest income/expense in the Consolidated Statements of Income.

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The following table presents other income and other expense components, including items that exceed one percent of the aggregate of total interest income and noninterest income in one or more of the periods indicated:

			Three months ended June 30,												Six months ended June 30,
($ in thousands)			2026						2025						2026						2025
Other income:
Bank-owned life insurance			$	2,427					$	2,561					$	4,960					$	3,432
Community development fees			404						1,426						1,471						2,133
Gain on SBA loan sales			—						1,153						1,414						3,048
Other income			1,554						3,289						5,304						6,215
Total other noninterest income			$	4,385					$	8,429					$	13,149					$	14,828
Other expense:
Amortization of intangibles			$	1,297					$	753					$	2,697					$	1,608
Banking expenses			1,962						2,362						3,979						4,325
FDIC and other insurance			3,980						3,429						7,483						6,577
Loan, legal expenses			3,880						3,244						7,913						5,435
Outside services			1,476						1,424						3,017						2,515
Other expenses			8,325						7,754						16,096						15,291
Total other noninterest expense			$	20,920					$	18,966					$	41,185					$	35,751

The Company has determined it has one operating and reportable segment. The economic characteristics, including the nature, the type or class of client, and the nature of the regulatory environment of the products, services and business lines of the Company are all similar. The Company provides a full range of banking services, including mortgage, tax credit brokerage, wealth management and traditional banking services, to individuals and corporate clients. Refer to “Item 1. Note 1 – Summary of Significant Accounting Policies” for the accounting policies of the Company.

The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The operating results that are regularly reviewed by the CODM are the consolidated results of the Company. The CODM uses the consolidated results of the Company in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for acquisitions or to pay dividends. The CODM assesses performance for the segment and decides how to allocate resources based on net income, reported on the income statement as consolidated net income. The CODM is provided with the consolidated financial statement package on a monthly basis.

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Subordinated Notes and Debentures

On June 17, 2026, the Company issued an aggregate of $175.0 million of 6.25% fixed-to-floating rate subordinated notes due in 2036 in a public offering (the “2036 Notes”). From and including the date of issuance to, but excluding July 1, 2031 or earlier redemption, the 2036 Notes will bear interest at a rate equal to 6.25% per annum, payable semiannually in arrears on each January 1 and July 1. From and including July 1, 2031 to, but excluding the maturity date or the date of earlier redemption, the 2036 Notes will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be three-month term SOFR (as defined in the Subordinated Indenture, dated as of June 17, 2026, as supplemented by the First Supplemental Indenture between the Company and U.S. Bank Trust Company, National Association, as trustee)), plus 232 basis points, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on October 1, 2031. Notwithstanding the foregoing, in event that the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero. The Company’s obligation to make payments of principal and interest on the notes is subordinate and junior in right of payment to all of its senior debt. Current regulatory guidance allows for this subordinated debt to be treated as tier 2 regulatory capital for the first five years of its term, subject to certain limitations, and then phased out of tier 2 capital pro rata over the next five years.

Term Loan

On September 2, 2025, the Company obtained a $63.3 million term loan (the “2025 Term Loan”) that was payable in quarterly installments with a final installment due on the five year anniversary of the initial advance date. The interest rate of the 2025 Term Loan was one-month Term SOFR plus 250 basis points.

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