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The unaudited consolidated financial statements include the accounts of Business First Bancshares, Inc. (the “Company”) and its five direct, wholly-owned subsidiaries, b1BANK (the “Bank”), Coastal Commerce Statutory Trust I, Progressive Statutory Trust I, and Progressive Statutory Trust II, and b1Capital, Inc.; and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC ("SSW"), Waterstone LSP, LLC ("Waterstone"), and b1 Securities, LLC ("b1Securities"). The Bank operates out of full-service banking centers and loan production offices in markets across Louisiana, the Dallas/Fort Worth metroplex and Houston, Texas. As a state bank, it is subject to regulation by the Office of Financial Institutions (“OFI”), State of Louisiana, and the Federal Deposit Insurance Corporation (“FDIC”) and undergoes periodic examinations by these agencies. The Company is also regulated by the Federal Reserve and is subject to periodic examinations.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial results for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions are eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year.

These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been omitted or abbreviated. These interim financial statements should be read in conjunction with the audited consolidated financial statements and footnote disclosures for the Company’s previously filed Form 10-K for the year ended December 31, 2025.

Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Critical accounting estimates that are particularly susceptible to significant change for the Company include the determination of the acquired loans, allowance for credit losses and purchase accounting adjustments (other than loans). Other estimates include goodwill, fair value of financial instruments, investment securities and the assessment of income taxes. Management does not anticipate any material changes to estimates in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, economic conditions in the Company’s markets, and changes in applicable banking regulations. Actual results may ultimately differ from estimates.

Accounting Standards Adopted in Current Period

ASU 2025-08,” Financial Instruments – Credit Losses (Topic 326), Purchased Loans.” The updates in ASU 2025-08 amend the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the gross-up approach). All non-purchased credit deteriorated (“non-PCD”) loans (excluding credit cards) that are acquired in a business combination are deemed seasoned. Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans. The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”).

The Company early adopted the amendments effective January 1, 2026, on a prospective basis. The Progressive acquisition disclosures contained in Note 2, as well as the allowance measurements reflected in Note 5 incorporate the updated guidance.

Accounting Standards Not Yet Adopted

None

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Progressive Bancorp, Inc.

On January 1, 2026, the Company consummated the merger of Progressive Bancorp, Inc. (“Progressive”), headquartered in Monroe, Louisiana, with and into the Company, pursuant to the terms of that certain Agreement and Plan of Reorganization (the “Reorganization Agreement”), dated as of July 7, 2025, by and between the Company and Progressive (the "Merger"). Also on January 1, 2026, Progressive's wholly owned banking subsidiary, Progressive Bank, was merged with and into b1BANK. Pursuant to the terms of the Reorganization Agreement, upon consummation of the Merger, the Company issued 3,192,367 shares of its common stock to the former shareholders of Progressive. At December 31, 2025, Progressive reported $773.8 million in total assets, $597.2 million in loans and $684.9 million in deposits.

The following table reflects the consideration paid for Progressive's net assets and the identifiable assets purchased and liabilities assumed at their fair values as of January 1, 2026. The fair values are provisional estimates and may be adjusted for a period of up to one year from the date of acquisition if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.

Cost and Allocation of Purchase Price for Progressive Bancorp, Inc. (Progressive):
(Dollars in thousands, except per share data)
Purchase Price:
Shares Issued to Progressive's Shareholders on January 1, 2026			3,192,367
Closing Stock Price on December 31, 2025			$	26.14
Total Stock Issued			$	83,448
Partial Shares Paid in Cash			3
Total Purchase Price			$	83,451
Net Assets Acquired:
Cash and Cash Equivalents			$	93,255
Securities Available for Sale			45,047
Loans and Leases Receivable, Net of Allowance			578,867
Premises and Equipment, Net			16,924
Cash Value of Life Insurance			11,559
Core Deposit Intangible			15,950
Other Assets			9,560
Total Assets			771,162
Deposits			684,753
Borrowings			7,538
Other Liabilities			7,592
Total Liabilities			699,883
Net Assets Acquired			71,279
Goodwill Resulting from Merger			$	12,172

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The Company has recorded approximately $3.4 million and $3.8 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the six months ended June 30, 2026, and year ended December 31, 2025, respectively.

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.

Cash and Cash Equivalents: The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets.

Securities Available for Sale: Fair values for securities were based on quoted market prices, where available. If quoted market prices were not available, fair value estimates were based on observable inputs including quoted market prices for similar instruments, quoted market prices that were not in an active market or other inputs that were observable in the market. In the absence of observable inputs, fair value was estimated based on pricing models/estimations.

Loans and Leases Receivable: Fair values for loans were based on a discounted cash flow methodology that considered factors including, but not limited to, loan type, classification status, remaining term, prepayment speed, and current discount rates. The discount rates used for loans were based on current market rates for new originations of comparable loans and included adjustments for any liquidity concerns. The discount rate did not include an explicit factor for credit losses, as that was included within the estimated cash flows. As discussed in Note 1, the Company adopted ASU 2025-08, which requires a calculation and application of Day 1 allowance for non-PCD loans, as well as PCD loans. The Day 1 allowance amounts are applied on a gross basis.

Acquired loans are evaluated as either purchased with a more-than insignificant amount of credit deterioration (“PCD”) or an insignificant amount of credit deterioration (“non-PCD”) at acquisition, based upon management’s assessment of whether or not a loan has experienced more than insignificant credit deterioration since origination. This evaluation is completed by management using a variety of factors, including individual loan characteristics as well as industry type and collateral evaluation, among other factors. At acquisition, management designated loans with a fair value of $8.0 million as PCD. The fair value was inclusive of a $6.9 million PCD allowance and $750,000 non-credit fair value discount from the acquired contractual value.

The remainder of the Progressive loan portfolio, with a fair value of $570.9 million at acquisition included a non-PCD allowance of $2.4 million and a non-credit fair value discount of $8.7 million from the acquired contractual value.

Core Deposit Intangible (“CDI”): The fair value for core deposit intangible assets was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, including interest cost, and alternative cost of funds. The CDI is being amortized over 10 years based upon the period over which estimated economic benefits are estimated to be received.

Deposits: The fair values used for the demand and savings deposits, by definition, equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis, that applied interest rates currently being offered to the contractual interest rates on such time deposits.

Borrowings: Fair values for borrowings were based on estimated market rates over the remaining terms of the subordinated debt issuances.

Pro forma tables for Progressive were impractical to include due to the insignificance to the overall Company as a whole.

American Planning Corporation

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Basic earnings per share (“EPS”) represents income available to common shareholders divided by the weighted average number of common shares outstanding; no dilution for any potentially convertible shares is included in the calculation. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The potential common shares that may be issued by the Company relate to outstanding stock options, unvested restricted stock awards (“RSAs”), unvested restricted stock units (“RSUs”) and performance shares, excluding any that were antidilutive. In addition, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method.

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in thousands, except per share data)			2026						2025						2026						2025
Numerator:
Net Income			$	24,175					$	22,103					$	47,739					$	42,646
Less: Preferred Stock Dividends			1,350						1,350						2,700						2,700
Net Income Available to Common Shares			$	22,825					$	20,753					$	45,039					$	39,946
Denominator:
Weighted Average Common Shares Outstanding			32,589,951						29,517,495						32,584,970						29,354,228
Dilutive Effect of Stock Options and RSAs			173,657						69,480						193,229						145,833
Weighted Average Dilutive Common Shares			32,763,608						29,586,975						32,778,199						29,500,061
Basic Earnings Per Common Share From Net Income Available to Common Shares			$	0.70					$	0.70					$	1.38					$	1.36
Diluted Earnings Per Common Share From Net Income Available to Common Shares			$	0.70					$	0.70					$	1.37					$	1.35

The amortized cost and fair values of securities available for sale as of June 30, 2026, and December 31, 2025 are summarized as follows:

			June 30, 2026
(Dollars in thousands)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
U.S. Treasury Securities			$	22,627					$	—					$	240					$	22,387
U.S. Government Agencies			10,022						—						70						9,952
Corporate Securities			87,029						262						1,724						85,567
Mortgage-Backed Securities			698,832						1,564						29,039						671,357
Municipal Securities			268,040						190						16,360						251,870
Total Securities Available for Sale			$	1,086,550					$	2,016					$	47,433					$	1,041,133

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			December 31, 2025
(Dollars in thousands)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
U.S. Treasury Securities			$	17,571					$	—					$	293					$	17,278
U.S. Government Agencies			10,070						—						196						9,874
Corporate Securities			38,324						377						1,639						37,062
Mortgage-Backed Securities			674,211						3,153						27,273						650,091
Municipal Securities			291,256						536						16,868						274,924
Total Securities Available for Sale			$	1,031,432					$	4,066					$	46,269					$	989,229

The following tables present a summary of securities with gross unrealized losses and fair values at June 30, 2026, and December 31, 2025, aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered non-credit related.

			June 30, 2026
			Less Than 12 Months												12 Months or Greater												Total
(Dollars in thousands)			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
U.S. Treasury Securities			$	12,485					$	108					$	9,902					$	132					$	22,387					$	240
U.S. Government Agencies			—						—						9,952						70						9,952						70
Corporate Securities			35,162						128						20,162						1,596						55,324						1,724
Mortgage-Backed Securities			215,493						2,760						282,490						26,279						497,983						29,039
Municipal Securities			23,002						104						180,787						16,256						203,789						16,360
Total Securities Available for Sale			$	286,142					$	3,100					$	503,293					$	44,333					$	789,435					$	47,433

			December 31, 2025
			Less Than 12 Months												12 Months or Greater												Total
(Dollars in thousands)			Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
U.S. Treasury Securities			$	—					$	—					$	17,278					$	293					$	17,278					$	293
U.S. Government Agencies			—						—						9,874						196						9,874						196
Corporate Securities			2,580						2						21,086						1,637						23,666						1,639
Mortgage-Backed Securities			83,844						506						336,946						26,767						420,790						27,273
Municipal Securities			12,939						57						210,329						16,811						223,268						16,868
Total Securities Available for Sale			$	99,363					$	565					$	595,513					$	45,704					$	694,876					$	46,269

As of June 30, 2026, and December 31, 2025, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality. This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings, historical loss experience, and other qualitative factors. Further, the securities continue to make principal and interest payments under their contractual terms and management does not have the intent to sell any of the securities and believes that it is more likely than not that the Company will not have to sell any such

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securities before a recovery of amortized cost basis. Therefore, the Company has determined the unrealized losses are due to changes in market interest rates compared to rates when the securities were acquired.

The amortized cost and fair values of securities available for sale as of June 30, 2026, by contractual maturity are shown below. Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.

(Dollars in thousands)			Amortized Cost						Fair Value
Less Than One Year			$	50,452					$	50,056
One to Five Years			205,238						194,525
Over Five to Ten Years			376,231						356,632
Over Ten Years			454,629						439,920
Total Securities Available for Sale			$	1,086,550					$	1,041,133

Securities available for sale with a fair value of $449.7 million and $398.3 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of June 30, 2026, and December 31, 2025, respectively.

There were $88,000 gross realized gains from sales or redemptions of securities for the six months ended June 30, 2026, none for the three months ended June 30, 2026, and $3,000 for both the three and six months ended June 30, 2025, respectively. There were $6,000 and $14,000 gross realized losses from sales or redemptions of securities for the three and six months ended June 30, 2026, respectively, and $50,000 and $51,000 for the three and six months ended June 30, 2025, respectively.

Loans receivable at June 30, 2026, and December 31, 2025, are summarized as follows:

(Dollars in thousands)			June 30, 2026						December 31, 2025
Real Estate Loans:
Commercial			$	2,824,015					$	2,611,279
Construction			693,477						639,069
Residential			1,079,018						944,065
Total Real Estate Loans			4,596,510						4,194,413
Commercial			1,988,696						1,921,833
Consumer and Other			74,241						73,244
Total Loans Held for Investment			6,659,447						6,189,490
Less:
Allowance for Loan Losses			(62,458)						(53,959)
Net Loans			$	6,596,989					$	6,135,531

The performing 1-4 family residential, multi-family residential, commercial real estate, and commercial loans, are pledged, under a blanket lien, as collateral securing advances from the FHLB at June 30, 2026, and December 31, 2025. Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of June 30, 2026, and December 31, 2025.

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Net deferred loan origination fees were $9.5 million and $11.4 million at June 30, 2026, and December 31, 2025, respectively, and are netted in their respective loan categories above. In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies overdrafts as loans in its consolidated balance sheets. At June 30, 2026, and December 31, 2025, overdrafts of $1.6 million and $7.9 million, respectively, have been reclassified to loans.

The Bank is the lead lender on participations sold, without recourse, to other financial institutions which amounts are not included in the consolidated balance sheets. The unpaid principal balances of mortgages and other loans serviced for others were approximately $762.0 million and $643.8 million at June 30, 2026 and December 31, 2025, respectively. The Company had servicing rights of $1.7 million and $956,000 recorded at June 30, 2026, and December 31, 2025, respectively, and is recorded within other assets.

The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations located in its general market areas throughout Louisiana and Texas. Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Bank develops and documents a systematic method for determining its allowance for credit losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate.

Portfolio Segments and Risk Factors

The loan portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment. The Company's loan portfolio segments are Real Estate, Commercial, and Consumer and Other. The classes and risk characteristics of each segment are discussed in more detail below. The segmentation and disaggregation of the portfolio is part of the ongoing credit monitoring process.

Real Estate Portfolio Segment

Real Estate: Commercial loans are extensions of credit secured by owner-occupied and non-owner-occupied collateral. Repayment is generally dependent on the successful operations of the property. General economic conditions may impact the performance of these types of loans, including fluctuations in the value of real estate, vacancy rates, and unemployment trends. Real estate commercial loans also include farmland loans that can be, or are, used for agricultural purposes. These loans are usually repaid through refinancing, cash flow from the borrower’s ongoing operations, development of the property, or sale of the property.

Real Estate: Construction loans include loans to small-to-midsized businesses to construct owner-occupied properties, loans to developers of commercial real estate investment properties and residential developments and, to a lesser extent, loans to individual clients for construction of single-family homes in the Company’s market areas. Risks associated with these loans include fluctuations in the value of real estate, project completion risk and changes in market trends. The Company is also exposed to risk based on the ability of the construction loan borrower to finance the loan or sell the property upon completion of the project, which may be affected by changes in secondary market terms and criteria for permanent financing since the time that the Company funded the loan.

Real Estate: Residential loans include first and second lien 1-4 family mortgage loans, as well as home equity lines of credit, in each case primarily on owner-occupied primary residences. The Company is exposed to risk based on fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness, or other personal hardship. Real estate residential loans also include multi-family residential loans originated to provide permanent financing for multi-family residential income producing properties. Repayment of these loans primarily relies on successful rental and management of the property.

Commercial Portfolio Segment

Commercial loans include general commercial and industrial, or C&I, loans, including commercial lines of credit, working capital loans, term loans, equipment financing, asset acquisition, expansion, and development loans,

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borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income. Commercial loan risk is derived from the expectation that such loans generally are serviced principally from the operations of the business, and those operations may not be successful. Any interruption or discontinuance of operating cash flows from the business, which may be influenced by events not under the control of the borrower such as economic events and changes in governmental regulations, could materially affect the ability of the borrower to repay the loan.

Consumer and Other Portfolio Segment

Consumer and other loans include a variety of loans to individuals for personal, family and household purposes, including secured and unsecured installment and term loans. The risk is based on changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness or other personal hardship, and fluctuations in the value of the real estate or personal property securing the consumer loan, if any.

The following tables set forth, for the three and six months ended June 30, 2026, and 2025, the balance of the allowance for credit losses by loan portfolio segment. The allowance for credit losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments.

Allowance for Credit Losses and Recorded Investment in Loans Receivable

			For the Six Months Ended June 30, 2026
(Dollars in thousands)			Real Estate: Commercial						Real Estate: Construction						Real Estate: Residential						Commercial						Consumer and Other						Total
Allowance for Loan Losses:
Beginning Balance			$	23,486					$	3,237					$	7,423					$	19,282					$	531					$	53,959
Adjustment for Progressive Loans			2,431						281						3,344						3,148						60						9,264
Charge-offs			(1,057)						—						(27)						(2,459)						(769)						(4,312)
Recoveries			6						4						60						299						105						474
Provision (Recovery)			(3,277)						327						(1,657)						6,816						864						3,073
Ending Balance			$	21,589					$	3,849					$	9,143					$	27,086					$	791					$	62,458
Reserve for Unfunded Loan Commitments:
Beginning Balance			$	320					$	1,179					$	309					$	2,336					$	33					$	4,177
Provision (Recovery)			(2)						14						(99)						1,258						25						1,196
Ending Balance			$	318					$	1,193					$	210					$	3,594					$	58					$	5,373
Total Allowance for Credit Losses			$	21,907					$	5,042					$	9,353					$	30,680					$	849					$	67,831

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			For the Three Months Ended June 30, 2026
(Dollars in thousands)			Real Estate: Commercial						Real Estate: Construction						Real Estate: Residential						Commercial						Consumer and Other						Total
Allowance for Loan Losses:
Beginning Balance			$	24,101					$	4,545					$	9,599					$	24,676					$	734					$	63,655
Charge-offs			(1,057)						—						(27)						(1,866)						(258)						(3,208)
Recoveries			—						—						46						186						61						293
Provision (Recovery)			(1,455)						(696)						(475)						4,090						254						1,718
Ending Balance			$	21,589					$	3,849					$	9,143					$	27,086					$	791					$	62,458
Reserve for Unfunded Loan Commitments:
Beginning Balance			$	333					$	1,671					$	246					$	2,812					$	38					$	5,100
Provision (Recovery)			(15)						(478)						(36)						782						20						273
Ending Balance			$	318					$	1,193					$	210					$	3,594					$	58					$	5,373
Total Allowance for Credit Losses			$	21,907					$	5,042					$	9,353					$	30,680					$	849					$	67,831

			For the Six Months Ended June 30, 2025
(Dollars in thousands)			Real Estate: Commercial						Real Estate: Construction						Real Estate: Residential						Commercial						Consumer and Other						Total
Allowance for Loan Losses:
Beginning Balance			$	23,460					$	7,162					$	8,036					$	15,667					$	515					$	54,840
Charge-offs			(266)						(20)						(237)						(1,047)						(999)						(2,569)
Recoveries			10						98						10						566						86						770
Provision (Recovery)			113						(1,042)						367						5,103						914						5,455
Ending Balance			$	23,317					$	6,198					$	8,176					$	20,289					$	516					$	58,496
Reserve for Unfunded Loan Commitments:
Beginning Balance			$	228					$	1,311					$	358					$	1,765					$	26					$	3,688
Provision (Recovery)			38						(423)						(72)						43						(4)						(418)
Ending Balance			$	266					$	888					$	286					$	1,808					$	22					$	3,270
Total Allowance for Credit Losses			$	23,583					$	7,086					$	8,462					$	22,097					$	538					$	61,766

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			For the Three Months Ended June 30, 2025
(Dollars in thousands)			Real Estate: Commercial						Real Estate: Construction						Real Estate: Residential						Commercial						Consumer and Other						Total
Allowance for Loan Losses:
Beginning Balance			$	23,325					$	6,211					$	9,033					$	17,764					$	530					$	56,863
Charge-offs			(264)						(17)						(12)						(182)						(446)						(921)
Recoveries			5						—						4						58						32						99
Provision (Recovery)			251						4						(849)						2,649						400						2,455
Ending Balance			$	23,317					$	6,198					$	8,176					$	20,289					$	516					$	58,496
Reserve for Unfunded Loan Commitments:
Beginning Balance			$	217					$	1,181					$	306					$	1,768					$	28					$	3,500
Provision (Recovery)			49						(293)						(20)						40						(6)						(230)
Ending Balance			$	266					$	888					$	286					$	1,808					$	22					$	3,270
Total Allowance for Credit Losses			$	23,583					$	7,086					$	8,462					$	22,097					$	538					$	61,766

Included within the above allowance, in the tables above, are loans which management has individually evaluated to determine an allowance for credit losses. The following table summarizes, by segment, the loan balance and specific allowance allocation for those loans which have been individually evaluated.

			June 30, 2026												December 31, 2025
(Dollars in thousands)			Loan Balance						Specific Allocations						Loan Balance						Specific Allocations
Real Estate Loans:
Commercial			$	8,273					$	4,065					$	29,248					$	1,873
Construction			1,595						207						2,141						149
Residential			8,470						2,549						2,380						—
Total Real Estate Loans			18,338						6,821						33,769						2,022
Commercial			23,728						7,352						10,771						4,989
Consumer and Other			1,279						26						—						—
Total			$	43,345					$	14,199					$	44,540					$	7,011

Credit Quality Indicators

We utilize a risk grading matrix to assign a risk grade to each of our commercial loans. Loans are graded on a scale of 10 to 80. Individual loan officers review updated financial information, which may include credit scores, financial statements, collateral valuations and other borrower information, for all pass grade (10-45) loans to reassess the risk grade, generally on at least an annual basis.

When a loan has a risk grade of 50, it is considered to be on management's “watch list,” and subject to additional and more frequent monitoring by both the loan officer and senior credit and risk personnel. Loans graded 60 or higher have exhibited potential or actual credit weakness that makes their full collection uncertain and are considered classified loans, consisting of substandard (60), doubtful (70) and loss (80) categories. Generally, loans that are classified are assigned special assets personnel for ongoing monitoring and resolution.

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The following tables set forth the credit quality indicators, disaggregated by loan segment, as of June 30, 2026, and December 31, 2025:

			June 30, 2026
									Criticized
(Dollars in thousands)			Pass (Risk Grade 10-45)						Special Mention (Risk Grade 50)						Substandard (Risk Grade 60)						Doubtful (Risk Grade 70)						Loss (Risk Grade 80)						Total						Current Period Charge- offs
Real Estate: Commercial
Originated in 2026			$	156,273					$	2,452					$	116					$	—					$	—					$	158,841					$	—
Originated in 2025			441,222						1,486						5,632						—						—						448,340						—
Originated in 2024			299,666						652						16,080						—						—						316,398						—
Originated in 2023			207,636						—						23,541						—						—						231,177						—
Originated in 2022			663,968						23,649						9,304						—						—						696,921						—
Originated Prior to 2022			892,753						11,192						15,483						101						—						919,529						1,057
Revolving			49,975						—						—						—						—						49,975						—
Revolving Loans Converted to Term			2,834						—						—						—						—						2,834						—
Total Real Estate: Commercial			$	2,714,327					$	39,431					$	70,156					$	101					$	—					$	2,824,015					$	1,057
Real Estate: Construction
Originated in 2026			$	68,925					$	—					$	—					$	—					$	—					$	68,925					$	—
Originated in 2025			233,860						—						37						—						—						233,897						—
Originated in 2024			141,218						159						6,638						—						—						148,015						—
Originated in 2023			39,685						—						4,204						—						—						43,889						—
Originated in 2022			85,435						2,275						68						—						—						87,778						—
Originated Prior to 2022			52,325						99						5,106						—						—						57,530						—
Revolving			49,320						—						—						—						—						49,320						—
Revolving Loans Converted to Term			4,123						—						—						—						—						4,123						—
Total Real Estate: Construction			$	674,891					$	2,533					$	16,053					$	—					$	—					$	693,477					$	—
Real Estate: Residential
Originated in 2026			$	69,510					$	781					$	168					$	—					$	—					$	70,459					$	—
Originated in 2025			107,909						1,073						1,342						—						—						110,324						—
Originated in 2024			115,496						100						647						—						—						116,243						—
Originated in 2023			87,583						—						4,767						—						—						92,350						—
Originated in 2022			260,489						—						1,533						—						—						262,022						—
Originated Prior to 2022			262,741						33,858						3,981						23						—						300,603						27
Revolving			115,440						1,347						2,508						—						—						119,295						—
Revolving Loans Converted to Term			7,307						345						70						—						—						7,722						—
Total Real Estate: Residential			$	1,026,475					$	37,504					$	15,016					$	23					$	—					$	1,079,018					$	27
Commercial
Originated in 2026			$	222,703					$	188					$	89					$	—					$	—					$	222,980					$	—
Originated in 2025			280,132						2,513						2,560						—						—						285,205						32
Originated in 2024			232,806						711						6,825						—						—						240,342						178
Originated in 2023			150,025						5,745						5,460						55						—						161,285						1,033
Originated in 2022			114,900						1,160						27,724						—						—						143,784						1,102
Originated Prior to 2022			157,931						2,487						9,035						11						—						169,464						114
Revolving			708,520						7,688						20,313						193						—						736,714						—
Revolving Loans Converted to Term			25,081						3,198						643						—						—						28,922						—
Total Commercial			$	1,892,098					$	23,690					$	72,649					$	259					$	—					$	1,988,696					$	2,459
Consumer and Other
Originated in 2026			$	10,934					$	—					$	—					$	—					$	—					$	10,934					$	269
Originated in 2025			10,084						—						20						—						—						10,104						11
Originated in 2024			5,737						—						6						—						—						5,743						7
Originated in 2023			2,836						—						13						—						—						2,849						18
Originated in 2022			2,895						—						29						—						—						2,924						4
Originated Prior to 2022			25,020						—						105						12						—						25,137						249
Revolving			16,079						—						1						—						—						16,080						211
Revolving Loans Converted to Term			305						—						165						—						—						470						—
Total Consumer and Other			$	73,890					$	—					$	339					$	12					$	—					$	74,241					$	769
Total Loans			$	6,381,681					$	103,158					$	174,213					$	395					$	—					$	6,659,447					$	4,312

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			December 31, 2025
									Criticized
(Dollars in thousands)			Pass (Risk Grade 10-45)						Special Mention (Risk Grade 50)						Substandard (Risk Grade 60)						Doubtful (Risk Grade 70)						Loss (Risk Grade 80)						Total						Current Period Charge- offs
Real Estate: Commercial
Originated in 2025			$	387,209					$	1,506					$	8,789					$	—					$	—					$	397,504					$	—
Originated in 2024			279,558						12,505						14,421						—						—						306,484						—
Originated in 2023			206,195						22,360						3,622						—						—						232,177						—
Originated in 2022			642,357						21,182						29,621						—						—						693,160						3,850
Originated in 2021			366,356						7,871						1,048						—						—						375,275						2
Originated Prior to 2021			536,644						8,692						6,641						472						—						552,449						—
Revolving			51,905						—						—						—						—						51,905						264
Revolving Loans Converted to Term			2,325						—						—						—						—						2,325						—
Total Real Estate: Commercial			$	2,472,549					$	74,116					$	64,142					$	472					$	—					$	2,611,279					$	4,116
Real Estate: Construction
Originated in 2025			$	206,047					$	848					$	—					$	—					$	—					$	206,895					$	—
Originated in 2024			155,588						—						474						—						—						156,062						—
Originated in 2023			42,018						3,561						1,205						—						—						46,784						—
Originated in 2022			104,768						2,074						2,088						—						—						108,930						1
Originated in 2021			26,011						3,056						472						—						—						29,539						19
Originated Prior to 2021			31,263						1,690						1,928						—						—						34,881						—
Revolving			54,618						—						—						—						—						54,618						—
Revolving Loans Converted to Term			1,360						—						—						—						—						1,360						—
Total Real Estate: Construction			$	621,673					$	11,229					$	6,167					$	—					$	—					$	639,069					$	20
Real Estate: Residential
Originated in 2025			$	95,656					$	1,377					$	—					$	—					$	—					$	97,033					$	(79)
Originated in 2024			84,881						—						507						—						—						85,388						—
Originated in 2023			84,761						—						1,346						—						—						86,107						—
Originated in 2022			242,424						614						1,830						—						—						244,868						8
Originated in 2021			136,520						14,266						454						32						—						151,272						—
Originated Prior to 2021			148,862						6,755						6,611						—						—						162,228						197
Revolving			110,519						1,758						2,120						—						—						114,397						116
Revolving Loans Converted to Term			2,685						—						87						—						—						2,772						—
Total Real Estate: Residential			$	906,308					$	24,770					$	12,955					$	32					$	—					$	944,065					$	242
Commercial
Originated in 2025			$	350,624					$	606					$	326					$	—					$	—					$	351,556					$	3
Originated in 2024			246,163						7,686						1,782						—						—						255,631						239
Originated in 2023			166,677						2,265						3,363						48						—						172,353						1,051
Originated in 2022			137,273						16,048						9,030						—						—						162,351						4,279
Originated in 2021			69,146						1,467						5,367						13						—						75,993						464
Originated Prior to 2021			98,366						884						3,290						38						—						102,578						732
Revolving			748,302						10,058						1,576						24						—						759,960						—
Revolving Loans Converted to Term			18,360						135						22,916						—						—						41,411						—
Total Commercial			$	1,834,911					$	39,149					$	47,650					$	123					$	—					$	1,921,833					$	6,768
Consumer and Other
Originated in 2025			$	12,063					$	—					$	8					$	—					$	—					$	12,071					$	1,119
Originated in 2024			6,896						—						6						—						—						6,902						49
Originated in 2023			3,812						—						19						—						—						3,831						169
Originated in 2022			2,771						—						33						—						—						2,804						97
Originated in 2021			1,045						—						68						2						—						1,115						48
Originated Prior to 2021			29,095						—						125						—						—						29,220						12
Revolving			16,120						—						19						—						—						16,139						497
Revolving Loans Converted to Term			904						—						258						—						—						1,162						—
Total Consumer and Other			$	72,706					$	—					$	536					$	2					$	—					$	73,244					$	1,991
Total Loans			$	5,908,147					$	149,264					$	131,450					$	629					$	—					$	6,189,490					$	13,137

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The above classifications follow regulatory guidelines and can generally be described as follows:

•Pass loans are of satisfactory quality.

•Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the collateral values.

•Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary.

•Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.

As of June 30, 2026, and December 31, 2025, loan balances outstanding more than 90 days past due and still accruing interest amounted to $4.0 million and $2.2 million, respectively. As of June 30, 2026, and December 31, 2025, loan balances outstanding on nonaccrual status amounted to $80.1 million and $74.5 million, respectively. The Bank considers all loans more than 90 days past due as nonperforming loans.

The following tables provide an analysis of the aging of loans and leases as of June 30, 2026, and December 31, 2025. All loans greater than 90 days past due are generally placed on nonaccrual status.

Aged Analysis of Past Due Loans Receivable

			June 30, 2026
(Dollars in thousands)			30-59 Days Past Due						60-89 Days Past Due						Greater Than 90 Days Past Due						Total Past Due						Current						Total Loans Receivable						Recorded Investment Over 90 Days Past Due and Still Accruing
Real Estate Loans:
Commercial			$	6,666					$	2,365					$	20,431					$	29,462					$	2,794,553					$	2,824,015					$	362
Construction			4,887						18						9,148						14,053						679,424						693,477						307
Residential			2,922						1,402						11,327						15,651						1,063,367						1,079,018						281
Total Real Estate Loans			14,475						3,785						40,906						59,166						4,537,344						4,596,510						950
Commercial			7,044						1,851						38,739						47,634						1,941,062						1,988,696						3,033
Consumer and Other			134						160						127						421						73,820						74,241						28
Total			$	21,653					$	5,796					$	79,772					$	107,221					$	6,552,226					$	6,659,447					$	4,011

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			December 31, 2025
(Dollars in thousands)			30-59 Days Past Due						60-89 Days Past Due						Greater Than 90 Days Past Due						Total Past Due						Current						Total Loans Receivable						Recorded Investment Over 90 Days Past Due and Still Accruing
Real Estate Loans:
Commercial			$	1,838					$	38,693					$	10,097					$	50,628					$	2,560,651					$	2,611,279					$	363
Construction			1,988						72						4,363						6,423						632,646						639,069						—
Residential			3,775						1,562						8,151						13,488						930,577						944,065						79
Total Real Estate Loans			7,601						40,327						22,611						70,539						4,123,874						4,194,413						442
Commercial			15,585						552						24,692						40,829						1,881,004						1,921,833						1,760
Consumer and Other			185						356						163						704						72,540						73,244						13
Total			$	23,371					$	41,235					$	47,466					$	112,072					$	6,077,418					$	6,189,490					$	2,215

The following table presents non-accrual loans by segment as of June 30, 2026, and December 31, 2025.

(Dollars in thousands)			June 30, 2026						December 31, 2025
Real Estate Loans:
Commercial			$	20,583					$	36,252
Construction			8,876						4,539
Residential			11,389						10,144
Total Real Estate Loans			40,848						50,935
Commercial			39,168						23,370
Consumer and Other			108						166
Total			$	80,124					$	74,471

The Bank had $7.2 million and $9.8 million as of June 30, 2026 and December 31, 2025, respectively, in non-accrual loans with no specific allowance allocation.

The Bank seeks to assist customers that are experiencing financial difficulty by renegotiating loans within lending regulations and guidelines. The Bank makes loan modifications, primarily utilizing internal renegotiation programs via direct customer contact, that manage customers’ debt exposures held only by the Bank. Additionally, the Bank makes loan modifications with customers who have elected to work with external renegotiation agencies and these modifications provide solutions to customers’ entire unsecured debt structures. During the periods ended June 30, 2026, and December 31, 2025, the concessions granted to certain borrowers included extending the payment due dates and offering below market contractual interest rates, and were not significant to the consolidated financial statements.

Accrued interest receivable of $1.2 million and $1.7 million was outstanding at June 30, 2026, and December 31, 2025, respectively, for all loan deferrals, primarily attributable to the COVID-19 pandemic and, to a much lesser extent, hurricanes which occurred in 2020 and 2021. These loans are no longer within their deferral periods. The accrued interest on the loans is due at their maturity.

At June 30, 2026 and December 31, 2025, accrued interest receivable on loans was $33.1 million and $33.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

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The Company had outstanding advances from the Federal Home Loan Bank (“FHLB”) of $442.5 million and $431.2 million as of June 30, 2026, and December 31, 2025, respectively, consisting of:

(Dollars in thousands)			June 30, 2026						December 31, 2025
4.65% advance due January 2026			$	—					$	25,000
3.62% advance due January 2026 (a)			—						120,000
4.00% advance due March 2026			—						25,000
4.56% advance due July 2026			25,000						25,000
3.91% advance due July 2026			25,000						25,000
3.81% advance due July 2026			75,000						—
3.82% advance due August 2026			55,000						—
3.89% advance due August 2026			55,000						—
0.89% advance due November 2026 (b)			5,102						11,200
4.84% advance due December 2026			25,000						25,000
0.71% advance due August 2027 (b) (c)			340						—
0.70% advance due August 2027 (b) (c)			170						—
0.68% advance due August 2027 (b) (c)			170						—
4.78% advance due September 2027			25,000						25,000
4.73% advance due March 2028			25,000						25,000
4.69% advance due September 2028			25,000						25,000
4.13% advance due October 2028 (d)			25,000						25,000
0.94% advance due August 2030 (b) (c)			856						—
0.92% advance due August 2030 (b) (c)			428						—
0.90% advance due August 2030 (b) (c)			428						—
3.92% advance due October 2030 (d)			25,000						25,000
3.72% advance due October 2033 (d)			25,000						25,000
3.57% advance due October 2033 (d)			25,000						25,000
Total FHLB advances			$	442,494					$	431,200

(a)Short term overnight advance.

(b)Principal paid monthly.

(c)Acquired during the Progressive acquisition.

(d)Loan has put options beginning in October 2024.

The Company had an additional $1.5 billion remaining on the FHLB line availability at June 30, 2026.

On January 1, 2026, in connection with the Progressive acquisition, the Company assumed Progressive Bancorp, Inc.'s junior subordinated debentures issued to Progressive Statutory Trust I and Progressive Statutory Trust II, each of which is a non-consolidated statutory trust. The assumed obligations totaled approximately $5.2 million in aggregate junior subordinated debentures, consisting of $1.2 million related to Progressive Statutory Trust I and $4.0 million related to Progressive Statutory Trust II, and were associated with an aggregated $5.0 million of trust preferred securities outstanding. The junior subordinated debentures related to Progressive Statutory Trust I mature on July 31, 2031, and bear interest at a floating rate equal to a benchmark rate plus 3.58%, payable quarterly (including the tenor spread adjustment). The junior subordinated debentures related to Progressive Statutory Trust II mature on December 15, 2037, and bear interest at a floating rate equal to a benchmark rate plus 1.45%, payable quarterly (including the tenor spread adjustment). The applicable indentures permit the Company to defer interest payments for up to 20 consecutive quarterly periods without an event of default. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the related trust preferred securities, subject to the applicable guarantee

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agreements and indentures. Principal and interest payments on the junior subordinated debentures are in a superior position to the liquidation rights of holders of common stock.

As part of the acquisition of these debentures, the Company had a fair value adjustment of $555,000, with $532,000 remaining at June 30, 2026.

On April 2, 2026, the Company completed an $85.0 million private placement of subordinated notes with a 6.50% fixed-to-floating rate due in 2036. The subordinated notes were issued to certain qualified institutional and accredited investors. The notes bear interest at an annual rate of 6.50% until March 30, 2031, and then will reset quarterly to a benchmark rate plus 300 basis points. The proceeds from the sale of these subordinated notes were utilized to redeem $66.9 million in outstanding subordinated notes, to provide additional capital support to b1BANK, to support growth, to better position the Company to take advantage of strategic opportunities that may arise from time to time, to repay other existing borrowings, and for other general corporate purposes. As part of the redemption, the Company recognized a $545,000 gain.

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The Company has a single reportable operating segment which is presented as the Consolidated Statements of Income. An analysis of other income for the Company's single reportable operating segment is as follows:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Debit Card and ATM Fee Income			$	2,415					$	1,958					$	4,721					$	3,816
Cash Value of Life Insurance Income			902						758						1,733						1,566
Fees and Brokerage Commissions			2,387						1,980						4,648						4,128
Pass-Through Income (Loss) from SBIC and Fintech Partnerships			14						(246)						149						505
Gain on Extinguishment/Redemption of Debt			545						—						545						630
Gain on Sale of Branch			—						3,360						—						3,360
Swap Fee Income			385						808						1,922						1,547
Other			2,545						2,430						4,962						4,607
Total Other Income			$	9,193					$	11,048					$	18,680					$	20,159

An analysis of other expenses for the Company's single reportable operating segment is as follows:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
(Dollars in thousands)			2026						2025						2026						2025
Advertising and Promotions			$	2,606					$	1,088					$	4,114					$	2,379
Communications			638						590						1,290						1,181
Ad Valorem Shares Tax			977						1,125						1,955						2,250
Data Processing Fees			3,317						5,321						7,029						8,557
Directors' Fees			247						193						507						472
Insurance			432						435						843						839
Legal and Professional Fees			1,661						1,093						2,746						2,106
Office Supplies and Printing			278						300						591						611
Regulatory Assessments			1,534						933						2,518						2,190
Other			6,133						4,439						11,163						8,407
Total Other Expenses			$	17,823					$	15,517					$	32,756					$	28,992

The Bank leases certain branch offices through non-cancelable operating leases with terms that range from one to ten years and contain various renewal options for certain of the leases. Certain leases provide for increases in minimum monthly rental payments as defined by the lease agreement. Rental expense under these agreements was $3.9 million and $4.2 million for the six months ended June 30, 2026, and 2025, respectively. At June 30, 2026, the Company had a weighted average lease term of 5.6 years and a weighted average discount rate of 3.98%.

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Future minimum lease payments under these leases are as follows:

(Dollars in thousands)
July 1, 2026 through December 31, 2026			$	3,073
January 1, 2027 through December 31, 2027			5,797
January 1, 2028 through December 31, 2028			5,332
January 1, 2029 through December 31, 2029			4,511
January 1, 2030 through December 31, 2030			3,119
January 1, 2031 and Thereafter			6,383
Total Future Minimum Lease Payments			28,215
Less Imputed Interest			(3,002)
Present Value of Lease Liabilities			$	25,213

In the normal course of business, the Bank is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and commercial letters of credit which are not included in the accompanying financial statements. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual amount of those instruments. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. The Bank uses the same credit policies in making such commitments and conditional obligations as it does for instruments that are included in the balance sheet. In the normal course of business, the Bank has made commitments to extend credit of approximately $2.0 billion and $1.7 billion at June 30, 2026, and December 31, 2025, respectively, and standby and commercial letters of credit of approximately $29.8 million and $51.2 million at June 30, 2026 and December 31, 2025, respectively. As discussed in Note 5, we have a reserve for unfunded loan commitments of $5.4 million and $4.2 million at June 30, 2026 and December 31, 2025, respectively.

In the normal course of business, the Bank is involved in various legal proceedings. In the opinion of management and counsel, the disposition or ultimate resolution of such proceedings would not have a material adverse effect on the Bank’s financial statements.

The Company enters into derivative instruments to meet the needs of its customers through the execution of customer-initiated derivatives (swaps and caps and floors). These financial instruments involve elements of market and credit risk. Market and credit risk are included in the determination of fair value. Market risk is the potential loss that may result from movements in interest rates that cause an unfavorable change in the value of a financial instrument. Market risk in interest rate contracts executed on behalf of customers is mitigated by taking offsetting positions. Credit risk is the possible loss that may occur in the event of default by the counterparty to a financial instrument. The Company manages credit risk arising from customer-initiated derivatives by evaluating the creditworthiness of each customer, utilizing a similar approval process used for its lending activities. Derivatives with dealer counterparties are either cleared through a clearinghouse or settled directly with a single counterparty. The Company has quantified the credit risk as not significant as of June 30, 2026.

Income primarily results from the spread between the customer derivative and the offsetting dealer position. For the six months ended June 30, 2026, the Company recognized $1.9 million swap fee income.

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			June 30, 2026
(Dollars in thousands)			Notional / Contract Amount						Gross Derivative Assets						Gross Derivative Liabilities
Customer-initiated and other activities:
Interest rate contracts:
Caps and floors written			$	49,839					$	2,736					$	—
Caps and floors purchased			49,839						—						2,736
Swaps			980,167						—						—
Total interest rate contracts			$	1,079,845					$	2,736					$	2,736

Fair Value Disclosures

The Company groups its financial assets and liabilities measured at fair value in three levels. Fair value should be based on the assumptions market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•Level 1 – Includes the most reliable sources and includes quoted prices in active markets for identical assets or liabilities.

•Level 2 – Includes observable inputs. Observable inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) as well as inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

•Level 3 – Includes unobservable inputs and should be used only when observable inputs are unavailable.

Recurring Basis

Fair values of investment securities available for sale were primarily measured using information from a third-party pricing service. This pricing service provides information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data from market research publications.

The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics.

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The following tables present the balance of assets and liabilities measured on a recurring basis as of June 30, 2026, and December 31, 2025.

(Dollars in thousands)			Fair Value						Level 1						Level 2						Level 3
June 30, 2026
Available for Sale:
U.S. Treasury Securities			$	22,387					$	—					$	22,387					$	—
U.S. Government Agency Securities			9,952						—						9,952						—
Corporate Securities			85,567						—						77,002						8,565
Mortgage-Backed Securities			671,357						—						671,357						—
Municipal Securities			251,870						—						231,547						20,323
Loans Held for Sale			2,838						—						2,838						—
Interest Rate Swaps			2,736						—						2,736						—
Total assets at fair value			$	1,046,707					$	—					$	1,017,819					$	28,888
Interest Rate Swaps			$	2,736					$	—					$	2,736					$	—
Total liabilities at fair value			$	2,736					$	—					$	2,736					$	—
December 31, 2025
Available for Sale:
U.S. Treasury Securities			$	17,278					$	—					$	17,278					$	—
U.S. Government Agency Securities			9,874						—						9,874						—
Corporate Securities			37,062						—						28,541						8,521
Mortgage-Backed Securities			650,091						—						650,091						—
Municipal Securities			274,924						—						251,477						23,447
Loans Held for Sale			1,094						—						1,094						—
Interest Rate Swaps			8,023						—						8,023						—
Total assets at fair value			$	998,346					$	—					$	966,378					$	31,968
Interest Rate Swaps			$	8,023					$	—					$	8,023					$	—
Total liabilities at fair value			$	8,023					$	—					$	8,023					$	—

The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company's ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.

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The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of June 30, 2026, and December 31, 2025.

(Dollars in thousands)			Municipal Securities						Corporate Securities
Balance at December 31, 2024			$	24,717					$	12,500
Unrealized Gains Included in Other Comprehensive Loss			2,458						21
Maturities, Prepayments, and Calls			(3,728)						—
Transfers Out of Level 3			—						(4,000)
Balance at December 31, 2025			23,447						8,521
Unrealized Gains Included in Other Comprehensive Loss			193						44
Maturities, Prepayments, and Calls			(3,317)						—
Balance at June 30, 2026			$	20,323					$	8,565

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at June 30, 2026.

(Dollars in thousands)

Estimated Fair Value

Valuation Technique

Unobservable Inputs

Discounts

June 30, 2026

Municipal Securities

$

20,323

Present Value of Expected Future Cash Flow Model

Liquidity Premium

1

%

Corporate Securities

8,565

Present Value of Expected Future Cash Flow Model

Liquidity Premium

2

%

Nonrecurring Basis

The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. The Company did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis.

The fair value of the individually evaluated loans is measured at the fair value of the collateral for collateral-dependent loans. Individually evaluated loans are Level 3 assets measured using appraisals from external parties of the collateral less any prior liens and adjusted for estimated selling costs. Adjustments may be made by management based on a customized internally developed discounting matrix. Repossessed assets are initially recorded at fair value less

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estimated cost to sell, which is generally 10%. The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available. As such, the Bank records repossessed assets as Level 3.

(Dollars in thousands)			Fair Value						Level 1						Level 2						Level 3
June 30, 2026
Assets:
Individually Evaluated Loans			$	16,763					$	—					$	—					$	16,763
Other Nonperforming Assets			25,109						—						—						25,109
Total			$	41,872					$	—					$	—					$	41,872
December 31, 2025
Assets:
Individually Evaluated Loans			$	14,083					$	—					$	—					$	14,083
Other Nonperforming Assets			13,013						—						—						13,013
Total			$	27,096					$	—					$	—					$	27,096

Fair Value Financial Instruments

The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. In accordance with GAAP, certain financial instruments and all non-financial instruments are excluded from these disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and Short-Term Investments – For those short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities Purchased Under Agreements to Resell - The carrying amount approximates its fair value.

Securities – Fair value of securities is based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

Loans – The fair value for loans is estimated using discounted cash flow analyses, with interest rates currently being offered for similar loans to borrowers with similar credit rates. Loans with similar classifications are aggregated for purposes of the calculations. The allowance for loan losses, which was used to measure the credit risk, is subtracted from loans.

Cash Value of Bank-Owned Life Insurance (“BOLI”) – The carrying amount approximates its fair value.

Other Equity Securities – The carrying amount approximates its fair value.

Interest Rate Swaps - Market values are obtained from market pricing data sources available for comparable transactions in the over-the-counter derivative market.

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Deposits – The fair value of demand deposits and certain money market deposits is the amount payable at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flow analyses, with interest rates currently offered for deposits of similar remaining maturities.

Borrowings – The fair value of FHLB advances and other long-term borrowings is estimated using the rates currently offered for advances of similar maturities. The carrying amount of short-term borrowings maturing within ninety days approximates the fair value.

Commitments to Extend Credit and Standby and Commercial Letters of Credit – The fair values of commitments to extend credit and standby and commercial letters of credit do not differ significantly from the commitment amount and are therefore omitted from this disclosure.

The estimated approximate fair values of the Bank’s financial instruments as of June 30, 2026, and December 31, 2025 are as follows:

(Dollars in thousands)			Carrying Amount						Total Fair Value						Level 1						Level 2						Level 3
June 30, 2026
Financial Assets:
Cash and Short-Term Investments			$	671,139					$	671,139					$	671,139					$	—					$	—
Securities Purchased Under Agreements to Resell			30,702						30,702						—						30,702						—
Securities			1,041,133						1,041,133						—						1,012,245						28,888
Loans Held for Sale			2,838						2,838						—						2,838						—
Loans - Net			6,596,989						6,574,508						—						—						6,574,508
Cash Value of BOLI			139,169						139,169						—						139,169						—
Other Equity Securities			51,302						51,302						—						—						51,302
Interest Rate Swaps			2,736						2,736						—						2,736						—
Total			$	8,536,008					$	8,513,527					$	671,139					$	1,187,690					$	6,654,698
Financial Liabilities:
Deposits			$	7,235,556					$	7,228,839					$	—					$	—					$	7,228,839
Borrowings			590,864						586,281						—						586,281						—
Interest Rate Swaps			2,736						2,736						—						2,736						—
Total			$	7,829,156					$	7,817,856					$	—					$	589,017					$	7,228,839

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(Dollars in thousands)			Carrying Amount						Total Fair Value						Level 1						Level 2						Level 3
December 31, 2025
Financial Assets:
Cash and Short-Term Investments			$	583,568					$	583,568					$	583,568					$	—					$	—
Securities Purchased Under Agreements to Resell			25,587						25,587						—						25,587						—
Securities			989,229						989,229						—						957,261						31,968
Loans Held for Sale			1,094						1,094						—						1,094						—
Loans - Net			6,135,531						6,116,333						—						—						6,116,333
Cash Value of BOLI			120,292						120,292						—						120,292						—
Other Equity Securities			49,342						49,342						—						—						49,342
Interest Rate Swaps			8,023						8,023						—						8,023						—
Total			$	7,912,666					$	7,893,468					$	583,568					$	1,112,257					$	6,197,643
Financial Liabilities:
Deposits			$	6,698,590					$	6,698,181					$	—					$	—					$	6,698,181
Borrowings			551,352						554,309						—						554,309						—
Interest Rate Swaps			8,023						8,023						—						8,023						—
Total			$	7,257,965					$	7,260,513					$	—					$	562,332					$	6,698,181

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