We believe interest rate and price risks are the most significant market risks impacting us. We monitor and evaluate these risks using sensitivity analyses to measure the effects on earnings, equity and the available for sale portfolio mark-to-market exposure, of changes in market interest rates. Exposures are managed to a set of limits previously approved by our Board of Directors and monitored by management. See discussions below for material changes in our market risk exposure as compared to those discussed in our 2025 Form 10-K, Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk”. Earnings Sensitivity The following table shows the sensitivity of our net interest income as a function of modeled interest rate changes: Change in earnings (1) June 30, December 31, (in thousands, except percentages) 2026 2025 Change in Interest Rates (Basis points) Increase of 200 $ 7,981 2.3 % $ 29,555 9.2 % Increase of 100 6,716 1.9 % 23,330 7.3 % Decrease of 100 (6,046) (1.7) % (14,970) (4.7) % Decrease of 200 (10,942) (3.2) % (32,418) (10.1) % __________________ (1) Represents the change in net interest income, and the percentage that change represents of the base scenario net interest income. The base scenario assumes (i) flat interest rates over the next 12 months, (ii) that total financial instrument balances are kept constant over time and (iii) that interest rate shocks are instant and parallel to the yield curve, for the various interest rates and indices that affect our net interest income. Annual net interest income in the base scenario as of June 30, 2026 increased to approximately $346.0 million compared to $320.0 million as of December 31, 2025. This increase is mainly driven by the increase in debt securities available for sale and lower cost of funds. This was offset by a decrease in cash balances held at the Federal Reserve. The Company periodically reviews the scenarios used for earnings sensitivity to reflect market conditions. 108 Economic Value of Equity (EVE) Analysis The following table shows the sensitivity of our EVE as a function of interest rate changes as of the periods presented: Change in equity (1) June 30, December 31, 2026 2025 Change in Interest Rates (Basis points) Increase of 200 (8.50) % (13.32) % Increase of 100 (3.32) % (3.90) % Decrease of 100 0.63 % 1.79 % Decrease of 200 (2.76) % (0.67) % __________________ (1) Represents the percentage of equity change in a static balance sheet analysis assuming interest rate shocks are instant and parallel to the yield curves for the various interest rates and indices that affect our net interest income. During the periods reported, the modeled effects on the EVE remained within established Company risk limits. Available for Sale Portfolio mark-to-market exposure The Company measures the potential change in the market price of its investment portfolio, and the resulting potential change on its equity for different interest rate scenarios. This table shows the result of this test as of June 30, 2026 and December 31, 2025: Change in market value (1) June 30, December 31, (in thousands) 2026 2025 Change in Interest Rates (Basis points) Increase of 200 $ (259,507) $ (206,181) Increase of 100 (126,031) (97,431) Decrease of 100 99,273 64,457 Decrease of 200 144,060 99,370 __________________ (1) Represents the amounts by which the investment portfolio mark-to-market would change assuming rate shocks are instant and parallel to the yield curves for the various interest rates and indices that affect our net interest income. The estimated average effective duration of our investment portfolio increased to 4.7 years at June 30, 2026 compared to 4.4 years at December 31, 2025, due to: (i) an extension in the average life of the existing portfolio resulting from higher long-term interest rates; and (ii) new purchases of MBS during the first half of 2026. Additionally, the floating rate portfolio decreased to 6.3% at June 30, 2026 from 10.3% at December 31, 2025. 109 The following table sets forth information regarding our interest rate sensitivity due to the maturities of our interest bearing assets and liabilities as of June 30, 2026. This information may not be indicative of our interest rate sensitivity position at other points in time. June 30, 2026 (in thousands except percentages) Total Less than one year One to three years Four to Five Years More than five years Non-rate Earning Assets Cash and cash equivalents $ 301,132 $ 260,591 $ — $ — $ — $ 40,541 Securities: Debt available for sale, at fair value 2,549,256 587,563 494,998 378,665 1,088,030 — Federal Reserve and FHLB stock 56,625 40,462 — — — 16,163 Loans held for sale - performing 122,561 122,561 — — — — Marketable equity securities 2,537 2,537 — — — — Loans held for investment-performing (1) 6,571,975 4,631,033 930,175 444,714 566,054 — Earning Assets $ 9,604,587 $ 5,645,247 $ 1,425,173 $ 823,379 $ 1,654,084 $ 56,704 Liabilities Interest bearing demand, savings, and money market deposits 4,736,160 4,736,160 — — — — Time deposits 1,911,037 1,591,352 278,877 40,382 426 — FHLB advances (2) 702,608 — 702,608 — — — Subordinated Notes 29,880 — — — 29,880 — Junior subordinated debentures 64,178 64,178 — — — — Interest bearing liabilities 7,443,863 6,391,690 981,485 40,382 30,306 — Interest rate sensitivity gap (746,443) 443,688 782,997 1,623,778 56,704 Cumulative interest rate sensitivity gap (746,443) (302,755) 480,242 2,104,020 2,160,724 Earnings assets to interest bearing liabilities (%) 88.3 % 145.2 % 2,039.0 % 5,457.9 % N/M __________________ (1) Loan held for investment-performing category excludes $171.1 million of non-performing loans (non-accrual loans and loans 90 days or more past-due and still accruing). (2) Includes FHLB advances in the amount of $435.0 million set to mature in 2029, which contain quarterly callable features. N/M Not meaningful 110