Finward Bancorp Announces Third Quarter 2026 Results

Finward Bancorp Announces Third Quarter 2026 Results MUNSTER, Ind.--( BUSINESS WIRE)--Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $1.4 million, or $0.31 per diluted share, for the quarter ended September 30, 2026, as compared to $2.1 million, or $0.48 per diluted share, for the quarter ended June 30, 2026. Selected performance metrics are as follows for the periods presented:

Performance Ratios

Quarter ended

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Return on equity

3.10

4.74

5.00

4.66

8.96

Return on assets

0.27

0.42

0.44

0.39

0.68

Net interest margin, tax-equivalent (non-GAAP)

3.51

3.37

3.35

3.32

3.18

Non-interest income/average assets

0.52

0.48

0.29

0.57

Non-interest expense/average assets

3.35

2.95

2.93

2.90

2.74

Efficiency ratio (non-GAAP)

91.32

84.52

84.45

89.50

81.22

"The third quarter was impacted by merger-related expenses related to our pending merger with First Financial, announced earlier in the quarter. The quarter included additional expenses in the areas of compensation and benefits, and third-party costs associated with the merger," said Benjamin Bochnowski, Chief Executive Officer. "Credit quality remained stable, as did our core banking business and customer base. The rapid increase in interest rates contributed positively to loan yields and margin, although it also resulted in higher unrealized losses in the bond portfolio. We continue to make progress toward closing our merger with First Financial, and we believe the combination of our companies will have benefits for our shareholders, customers, communities, and employees. Throughout this process, our commitment to our customers and communities grounds the team, and our team is working diligently to ensure a seamless transition that maximizes the promise of the merger.”

Highlights of the current period include:

Disclosures Regarding Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible book value per share, tangible common equity/tangible assets, net interest margin on a tax-equivalent basis, and efficiency ratio which can vary from period to period, provides a better comparison of period to period operating performance. The net interest income and net interest margin on a tax-equivalent basis measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal corporate income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation of non-GAAP Financial Measures" below for more information.

About Finward Bancorp

Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 24 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: the ability of First Financial Bancorp ("First Financial") and the Bancorp to complete the proposed merger; the effects of the pendency of the proposed merger with First Financial on the Bancorp and its business; changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; risks related to the development and use of artificial intelligence (AI); changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; inflation; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website ( www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, the Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

Important Additional Information About the Transaction and Where to Find It

In connection with the proposed merger transaction between First Financial and the Bancorp (the “Merger”), First Financial has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares of First Financial common stock to be issued in connection with the proposed transaction. The Registration Statement includes a proxy statement of the Bancorp and a prospectus of First Financial (the “Proxy Statement/Prospectus”), and First Financial and the Bancorp may file with the SEC other relevant documents concerning the proposed transaction. First Financial and the Bancorp have mailed the definitive Proxy Statement/Prospectus to shareholders of the Bancorp (which mailings were first made on or about September 28, 2026. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION IN THEIR ENTIRETY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT FIRST FINANCIAL, THE BANCORP AND THE PROPOSED TRANSACTION AND RELATED MATTERS.

A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about First Financial and the Bancorp, may be obtained, free of charge, at the SEC’s website ( www.sec.gov). Copies of documents filed with the SEC by First Financial will be made available free of charge in the “Investor Relations” section of First Financial’s website, https://www.bankatfirst.com/about/investor-relations.html. Copies of documents filed with the SEC by the Bancorp will be made available free of charge in the “Investor Relations” section of the Bancorp’s website, https://investorrelations.ibankpeoples.com/. The information on First Financial’s and the Bancorp’s websites is not, and shall not be deemed to be, a part of this communication or incorporated into other filings either company makes with the SEC.

Participants in Solicitation

The Bancorp and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the Merger. Information concerning the Bancorp’s participants is set forth in the Proxy Statement, dated April 3, 2026, for the Company’s 2026 annual meeting of shareholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of the participants of the Bancorp in the solicitation of proxies in respect of the Merger are included in the Registration Statement and Proxy Statement/Prospectus on file with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.

Performance Ratios

Quarter Ended

Nine Months Ended

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

9/30/2026

9/30/2025

Return on equity

3.10

4.74

5.00

4.66

8.96

4.29

5.27

Return on assets

0.27

0.42

0.44

0.39

0.68

0.38

0.40

Yield on loans

5.73

5.55

5.50

5.64

5.49

5.60

5.37

Yield on security investments

2.33

2.27

2.22

2.29

2.40

2.28

2.40

Total yield on earning assets

5.10

4.93

4.86

4.96

4.91

4.97

4.82

Cost of interest-bearing deposits

2.04

1.98

1.92

2.09

2.16

1.98

2.15

Cost of federal funds purchased and repurchase agreements

2.85

2.82

2.85

3.12

3.37

2.84

3.35

Cost of borrowed funds

3.90

3.80

3.70

3.64

3.80

3.90

Total cost of interest-bearing liabilities

2.11

2.06

2.00

2.16

2.25

2.06

2.25

Net interest margin

3.39

3.25

3.23

3.18

3.04

3.29

2.94

Net interest margin, tax-equivalent (non-GAAP) (1)

3.51

3.37

3.35

3.32

3.18

3.41

3.08

Non-interest income/average assets

0.52

0.48

0.29

0.57

0.49

0.51

Non-interest expense/average assets

3.35

2.95

2.93

2.90

2.74

3.08

2.81

Efficiency ratio (non-GAAP) (1)

91.32

84.52

84.45

89.50

81.22

86.85

87.54

Non-performing assets to total assets

0.92

0.90

0.71

0.65

0.76

0.92

0.76

Non-performing loans to total loans

1.12

1.10

0.85

0.77

0.94

1.12

0.94

Allowance for credit losses to non-performing loans

104.49

106.92

139.72

156.84

129.41

104.49

129.41

Allowance for credit losses to loans receivable

1.17

1.18

1.19

1.21

1.22

1.17

1.22

Net charge-offs (recoveries) as a percentage of average loans receivable

0.06

(0.01

0.00

0.08

0.07

(0.01

Basic earnings per share

0.32

0.49

0.52

0.46

0.82

1.33

1.43

Diluted earnings per share

0.31

0.48

0.52

0.46

0.81

1.32

1.42

Weighted average common shares outstanding—basic

4,283,138

4,280,844

4,276,530

4,273,421

4,273,022

4,280,195

4,270,652

Weighted average common shares outstanding—diluted

4,325,700

4,319,052

4,302,206

4,301,462

4,299,007

4,318,918

4,291,171

Stockholders' equity to total assets

7.84

8.74

8.56

8.64

8.06

7.84

8.06

Tangible common equity to tangible assets (non-GAAP) (1)

6.76

7.68

7.48

7.56

6.99

6.76

6.99

Book value per share

36.45

41.15

39.81

40.37

38.24

36.45

38.24

Tangible common book value per share (non-GAAP) (1)

31.07

35.75

34.39

34.92

32.77

31.07

32.77

Closing stock price

41.65

36.78

36.30

35.19

32.09

41.65

32.09

Dividends declared per common share

0.12

0.36

0.24

(1) See the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Average Balances, Interest, Rates

Quarter Ended

September 30, 2026

June 30, 2026

March 31, 2026

(Dollars in thousands)

Average

Balance

Interest

Yield/Rate

Average

Balance

Interest

Yield/Rate

Average

Balance

Interest

Yield/Rate

ASSETS

Interest bearing deposits in other financial institutions

75,192

683

3.63

78,886

718

3.64

96,250

949

3.94

Federal funds sold

1,276

2.82

1,046

3.06

1,523

2.89

Securities available-for-sale

303,374

1,768

2.33

309,251

1,757

2.27

318,670

1,771

2.22

Loans receivable

1,495,817

21,438

5.73

1,474,063

20,468

5.55

1,445,921

19,871

5.50

Federal Home Loan Bank stock

6,547

119

7.27

6,547

114

6.97

6,547

119

7.27

Total interest earning assets

1,882,206

24,017

5.10

1,869,793

23,065

4.93

1,868,911

22,721

4.86

Cash and non-interest bearing deposits in other financial institutions

15,864

15,504

21,331

Allowance for credit losses

(17,541

)

(17,418

)

(17,608

)

Other non-interest bearing assets

144,816

143,484

143,452

Total assets

2,025,345

2,011,363

2,016,086

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing deposits

1,462,769

7,478

2.04

1,446,072

7,159

1.98

1,447,994

6,959

1.92

Federal funds purchased and repurchase agreements

26,852

191

2.85

33,076

233

2.82

38,113

272

2.85

Borrowed funds

41,630

406

3.90

51,925

493

3.80

45,334

419

3.70

Total interest bearing liabilities

1,531,251

8,075

2.11

1,531,073

7,885

2.06

1,531,441

7,650

2.00

Non-interest bearing deposits

282,313

268,540

270,626

Other non-interest bearing liabilities

36,373

35,243

34,588

Total liabilities

1,849,937

1,834,856

1,836,655

Total stockholders' equity

175,408

176,507

179,431

Total liabilities and stockholders' equity

2,025,345

2,011,363

2,016,086

Net interest income

15,942

15,180

15,071

Return on average assets

0.27

0.42

0.44

Return on average equity

3.10

4.74

5.00

Net interest margin

3.39

3.25

3.23

Net interest margin, tax-equivalent (non-GAAP) (1)

3.51

3.37

3.35

Net interest spread

2.99

2.87

2.86

Ratio of interest-earning assets to interest-bearing liabilities

1.23x

1.22x

(1) See the reconciliation of non-GAAP measures to the most directly comparable GAAP measures on pg 13.

Consolidated Balance Sheets

As of

(Dollars in thousands)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

ASSETS

Cash and non-interest bearing deposits in other financial institutions

16,630

17,384

15,758

18,265

19,458

Interest bearing deposits in other financial institutions

74,978

76,270

102,997

101,382

84,157

Federal funds sold

1,051

988

563

Total cash and cash equivalents

92,659

94,642

118,755

119,647

104,178

Securities available-for-sale

279,869

310,198

307,686

316,227

335,150

Loans held-for-sale

2,181

1,083

1,096

2,641

Loans receivable, net of deferred fees and costs

1,499,222

1,503,793

1,455,118

1,450,387

1,473,774

Less: allowance for credit losses

(17,542

)

(17,694

)

(17,285

)

(17,506

)

(17,977

)

Net loans receivable

1,481,680

1,486,099

1,437,833

1,432,881

1,455,797

Federal Home Loan Bank stock

6,547

Accrued interest receivable

7,802

7,671

7,700

7,781

7,585

Premises and equipment

43,499

43,932

44,315

44,976

45,544

Cash value of bank owned life insurance

34,225

34,010

33,786

33,586

33,843

Goodwill

22,395

Other intangible assets

896

984

1,076

1,172

1,273

Other assets

42,372

33,145

35,063

34,873

37,771

Total assets

2,014,125

2,040,706

2,015,156

2,021,181

2,052,724

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Non-interest bearing

281,477

270,682

278,705

267,441

280,296

Interest bearing

1,476,980

1,461,862

1,440,366

1,459,530

1,470,350

Total

1,758,457

1,732,544

1,719,071

1,726,971

1,750,646

Federal funds purchased and repurchase agreements

24,849

30,301

40,815

39,703

48,426

Borrowed funds

35,000

65,000

50,000

45,000

55,000

Accrued expenses and other liabilities

37,977

34,574

32,870

34,844

33,157

Total liabilities

1,856,283

1,862,419

1,842,756

1,846,518

1,887,229

Stockholders' Equity:

Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding

Common stock, no par or stated value; 10,000,000 shares authorized (1)

Additional paid-in capital

71,232

70,530

70,397

70,331

70,233

Accumulated other comprehensive loss

(63,520

)

(41,532

)

(45,713

)

(41,662

)

(49,266

)

Retained earnings

150,130

149,289

147,716

145,994

144,528

Total stockholders' equity

157,842

178,287

172,400

174,663

165,495

Total liabilities and stockholders' equity

2,014,125

2,040,706

2,015,156

2,021,181

2,052,724

(1) Shares of common stock issued and outstanding were 4,330,893 at 9/30/2026; 4,333,002 at 6/30/2026; 4,330,486 at 3/31/2026; 4,326,747 at 12/31/2025; and 4,327,511 at 9/30/2025.

Consolidated Statements of Income

Quarter Ended

(Dollars in thousands, except per share data)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Interest income:

Loans

21,438

20,468

19,871

20,496

20,246

Securities & short-term investments

2,579

2,597

2,850

2,916

3,094

Total interest income

24,017

23,065

22,721

23,412

23,340

Interest expense:

Deposits

7,478

7,159

6,959

7,605

7,996

Borrowings

597

726

691

765

901

Total interest expense

8,075

7,885

7,650

8,370

8,897

Net interest income

15,942

15,180

15,071

15,042

14,443

Provision for (benefit from) credit losses

124

264

(84

)

(301

)

Net interest income after provision for credit losses

15,818

14,916

15,016

15,126

14,744

Non-interest income:

Fees and service charges

1,251

1,331

1,295

1,485

1,463

Wealth management operations

725

748

661

659

759

Gain (loss) on tax credit investment

Gain (loss) on sale of loans held-for-sale, net

281

228

257

346

265

Gain (loss) on sale of securities, net

(1,577

)

Bank owned life insurance

215

223

201

522

439

Gain (loss) on sale of property and equipment

182

(180

)

(56

)

Other

Total non-interest income

2,655

2,398

2,417

1,473

2,913

Non-interest expense:

Compensation and benefits

9,735

8,033

7,591

7,573

7,330

Occupancy and equipment

1,693

1,741

1,991

2,111

2,004

Data processing

1,210

1,176

1,105

1,465

1,116

Federal deposit insurance premiums

383

347

381

417

399

Marketing

399

266

587

230

257

Professional and outside services

1,614

1,221

1,169

906

945

Technology

594

516

508

521

549

Other

1,355

1,557

1,436

1,558

1,497

Total non-interest expense

16,983

14,857

14,768

14,781

14,097

Income before income taxes

1,490

2,457

2,665

1,818

3,560

Income tax expenses (benefit)

129

364

423

(166

)

Net income

1,361

2,093

2,242

1,984

3,497

Earnings per common share:

Basic

0.32

0.49

0.52

0.46

0.82

Diluted

0.31

0.48

0.52

0.46

0.81

Consolidated Statements of Income (cont'd)

Nine Months Ended

(Dollars in thousands, except per share data)

9/30/2026

9/30/2025

Interest income:

Loans

61,777

59,841

Securities & short-term investments

8,026

8,510

Total interest income

69,803

68,351

Interest expense:

Deposits

21,596

23,821

Borrowings

2,014

2,829

Total interest expense

23,610

26,650

Net interest income

46,193

41,701

Provision for (benefit from) credit losses

443

(121

)

Net interest income after provision for credit losses

45,750

41,822

Non-interest income:

Fees and service charges

3,877

3,902

Wealth management operations

2,134

2,074

Gain on tax credit investment

—

Gain on sale of loans held-for-sale, net

766

873

Bank owned life insurance

639

857

Gain (loss) on sale of property and equipment

(56

)

Other

Total non-interest income

7,470

7,825

Non-interest expense:

Compensation and benefits

25,359

22,015

Occupancy and equipment

5,425

6,050

Data processing

3,491

3,496

Federal deposit insurance premiums

1,111

1,303

Marketing

1,252

557

Professional and outside services

4,004

3,320

Technology

1,618

1,548

Other

4,348

5,066

Total non-interest expense

46,608

43,355

Income before income taxes

6,612

6,292

Income tax expenses

916

189

Net income

5,696

6,103

Earnings per common share:

Basic

1.33

1.43

Diluted

1.32

1.42

Loans

As of

(Dollars in thousands)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

9/30/2026 vs 6/30/2026

9/30/2026 vs 9/30/2025

Residential real estate

454,668

455,882

445,097

442,443

450,007

(1,214

)

(0.3

4,661

1.0

Home equity

53,180

55,601

53,855

53,497

51,813

(2,421

)

(4.4

1,367

2.6

Commercial real estate

595,850

597,364

564,613

555,594

564,558

(1,514

)

(0.3

31,292

5.5

Construction and land development

86,646

77,710

76,582

77,208

79,678

8,936

11.5

6,968

8.7

Multifamily

173,382

180,148

185,824

183,902

192,698

(6,766

)

(3.8

(19,316

)

(10.0

Commercial business

105,513

103,281

94,160

99,304

96,192

2,232

2.2

9,321

9.7

Consumer

278

2,036

310

870

348

(1,758

)

(86.3

(70

)

(20.1

Manufactured homes

21,318

22,050

22,981

23,708

24,372

(732

)

(3.3

(3,054

)

(12.5

Government

7,640

9,818

9,998

12,298

(2,178

)

(22.2

(4,658

)

(37.9

Loans receivable

1,498,475

1,503,890

1,453,420

1,448,824

1,471,964

(5,415

)

(0.4

26,511

1.8

Net deferred loan origination costs

745

1,006

1,723

1,606

1,719

(261

)

(25.9

(974

)

(56.7

Loan clearing funds

(1,103

)

(25

)

(43

)

1,105

(100.2

(89

)

(97.8

Loans receivable, net

1,499,222

1,503,793

1,455,118

1,450,387

1,473,774

(4,571

)

(0.3

25,448

1.7

Deposits

As of

(Dollars in thousands)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

9/30/2026 vs 6/30/2026

9/30/2026 vs 9/30/2025

Checking

590,974

584,901

587,575

592,214

579,760

6,073

1.0

11,214

1.9

Savings

241,412

247,054

253,408

254,055

257,058

(5,642

)

(2.3

(15,646

)

(6.1

Money market

432,725

403,140

389,274

381,111

377,155

29,585

7.3

55,570

14.7

Certificates of deposit

493,346

497,449

488,814

499,591

536,673

(4,103

)

(0.8

(43,327

)

(8.1

Total deposits

1,758,457

1,732,544

1,719,071

1,726,971

1,750,646

25,913

1.5

7,811

0.4

Asset Quality

As of and for the Quarter Ended

(Dollars in thousands)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Non-accruing loans

16,788

16,549

12,371

11,162

13,892

Securities in non-accrual

1,708

1,909

1,891

1,882

1,616

Foreclosed real estate

Total nonperforming assets

18,496

18,458

14,351

13,133

15,508

Allowance for credit losses (ACL):

ACL specific allowances for collateral dependent loans

155

147

263

912

ACL general allowances for loan portfolio

17,387

17,547

17,285

17,243

17,065

Total ACL

17,542

17,694

17,285

17,506

17,977

Allowance for Credit Losses

As of and for the Quarter Ended

(Dollars in thousands)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Beginning allowance for credit losses

17,694

17,285

17,506

17,977

18,184

Provision for (benefit from) loan losses

378

(224

)

(170

)

Net (charge-offs) recoveries

(240

)

(301

)

(268

)

Ending allowance for credit losses

17,542

17,694

17,285

17,506

17,977

Bank-Level Regulatory Capital Requirements

September 30, 2026

Actual (1)

Minimum Required For

Capital Adequacy Purposes

Minimum Required To Be

Well Capitalized Under Prompt

Corrective Action Regulations

(Dollars in thousands)

Amount

Ratio

Amount

Ratio

Amount

Ratio

Common equity tier 1 capital to risk-weighted assets

191,109

11.74

73,249

4.50

105,805

6.50

Tier 1 capital to risk-weighted assets

191,109

11.74

97,666

6.00

130,221

8.00

Total capital to risk-weighted assets

210,604

12.94

130,221

8.00

162,777

10.00

Tier 1 leverage ratio

191,109

9.29

82,312

4.00

102,891

5.00

(1) Current quarter ratios are estimated.

Reconciliation of Non-GAAP Performance Measures

Quarter Ended

(Dollars in thousands, except per share amounts)

9/30/2026

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Tangible Common Ratios

Stockholder's equity (GAAP)

157,842

178,287

172,400

174,663

165,495

Less: Goodwill (GAAP)

(22,395

)

(22,395

)

(22,395

)

(22,395

)

(22,395

)

Less: Other intangibles (GAAP)

(896

)

(984

)

(1,076

)

(1,172

)

(1,273

)

Tangible common equity (non-GAAP)

134,551

154,908

148,929

151,096

141,827

Total assets (GAAP)

2,014,125

2,040,706

2,015,156

2,021,181

2,052,724

Less: Goodwill (GAAP)

(22,395

)

(22,395

)

(22,395

)

(22,395

)

(22,395

)

Less: Other intangibles (GAAP)

(896

)

(984

)

(1,076

)

(1,172

)

(1,273

)

Tangible assets (non-GAAP)

1,990,834

2,017,327

1,991,685

1,997,614

2,029,056

Shares outstanding - end of quarter

4,330,893

4,333,002

4,330,486

4,326,747

4,327,511

Common book value per share (GAAP)

36.45

41.15

39.81

40.37

38.24

Tangible common book value per share (non-GAAP)

31.07

35.75

34.39

34.92

32.77

Total equity to total assets (GAAP)

7.84

8.74

8.56

8.64

8.06

Tangible common equity to tangible assets (non-GAAP)

6.76

7.68

7.48

7.56

6.99

Calculation of net interest margin, taxable-equivalent basis

Net interest income (GAAP)

15,942

15,180

15,071

15,042

14,443

Tax-equivalent adjustment on securities and loans (1)

575

580

582

629

663

Net interest income (tax-equivalent basis)

16,517

15,760

15,653

15,671

15,106

Total average earning assets

1,882,206

1,869,793

1,868,911

1,889,616

1,900,066

Net interest margin

3.39

3.25

3.23

3.18

3.04

Net interest margin (tax-equivalent basis)

3.51

3.37

3.35

3.32

3.18

Efficiency ratio

Total non-interest expense

16,983

14,857

14,768

14,781

14,097

Total revenue

18,597

17,578

17,488

16,515

17,356

Efficiency ratio

91.32

84.52

84.45

89.50

81.22

(1) The tax equivalent adjustment represents the increase in net interest income needed to reflect the tax-exempt income from certain investment securities and loans on tax-equivalent basis using a federal statutory corporate rate of 21%.