Management of Market Risk General. The principal objective of our asset and liability management function is to evaluate the interest rate risk within the balance sheet and pursue a controlled assumption of interest rate risk while maximizing net income and preserving adequate levels of liquidity and capital. The board of directors of our Bank has oversight of our asset and liability management function, which is managed by our Asset/Liability Management Committee and our Finance Committee. Our Asset/Liability Management Committee meets regularly to review, among other things, the sensitivity of our assets and liabilities to market interest rate changes, local and national market conditions and market interest rates. That group also reviews our liquidity, capital, deposit mix, loan mix and investment positions. As a financial institution, our primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities, and the fair value of all interest-earning assets and interest-bearing liabilities, other than those that have a short term to maturity. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair values. The objective is to measure the effect on net interest income and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income. We manage our exposure to interest rates primarily by structuring our balance sheet in the ordinary course of business. We do not typically enter into derivative contracts for the purpose of managing interest rate risk, but we may do so in the future. Based upon the nature of our operations, we are not subject to foreign exchange or commodity price risk. We do not own any trading assets. Net Interest Income Simulation. We use an interest rate risk simulation model to test the interest rate sensitivity of net interest income and the balance sheet. Instantaneous parallel rate shift scenarios are modeled and utilized to evaluate risk and establish exposure limits for acceptable changes in net interest margin. These scenarios, known as rate shocks, simulate an instantaneous change in interest rates and use various assumptions, including, but not limited to, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, reinvestment and replacement of asset and liability cash flows. ​ 46 Table of Contents The following table presents the estimated changes in our net interest income, calculated on a bank-only basis, which would result from changes in market interest rates over a twelve month period as of June 30, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Interest ​ Year 1 ​ ​ ​ Income Change ​ Change ​ Change in Interest Rates (1) ​ Year 1 Forecast ​ from Level ​ ​ ​ ​ ​ (Dollars in thousands) ​ +200 Basis Points ​ $ 10,515 ​ 8.82 % +100 Basis Points ​ $ 5,506 ​ 4.62 % — ​ $ — ​ — % -100 Basis Points ​ $ (5,847) ​ (4.90) % -200 Basis Points ​ $ (11,713) ​ (9.82) % (1) This analysis assumes an instantaneous and parallel rate shock across the entire yield curve for the scenarios indicated. Economic Value of Equity Simulation. We also analyze our sensitivity to changes in interest rates through an economic value of equity ("EVE") model. EVE represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities adjusted for the value of off-balance sheet contracts. EVE attempts to quantify our economic value using a discounted cash flow methodology. We estimate what our EVE would be as of a specific date. We then calculate what EVE would be as of the same date throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve. We currently calculate EVE under the assumptions that interest rates increase 100, 200, and 300 basis points from current market rates, and under the assumption that interest rates decrease 100, 200, and 300 basis points from current market rates. The following table presents the estimated changes in our EVE, calculated on a bank-only basis, that would result from changes in market interest rates as of June 30, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ ​ ​ Increase (Decrease) ​ ​ ​ ​ ​ ​ in EVE ​ ​ ​ Estimated ​ ​ ​ ​ ​ Change in Interest Rates ​ ​ ​ EVE ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ ​ ​ (Dollars in thousands) ​ +300 Basis Points ​ $ 839,633 ​ $ 79,849 10.51 % +200 Basis Points ​ $ 817,894 ​ $ 58,110 7.65 % +100 Basis Points ​ $ 794,452 ​ $ 34,668 4.56 % — ​ $ 759,784 ​ $ — — % -100 Basis Points ​ $ 713,545 ​ $ (46,239) (6.09) % -200 Basis Points ​ $ 653,486 ​ $ (106,298) ​ (13.99) % -300 Basis Points ​ $ 583,041 ​ $ (176,743) ​ (23.26) % ​ Note: This analysis assumes an instantaneous and parallel rate shock across the entire yield curve for the scenarios indicated. Many assumptions are used to calculate the impact of interest rate fluctuations. Actual results may be significantly different than our projections due to several factors, including the timing and frequency of rate changes, market conditions and the shape of the yield curve. The computations of interest rate risk shown above do not include actions that our management may undertake to manage the risks in response to anticipated changes in interest rates, and actual results may also differ due to any actions taken in response to the changing rates. Credit Risk The Company manages credit risk consistent with state and federal laws governing the making of loans through written policies and procedures; loan review to identify loan problems at the earliest possible time; collection procedures (including subsequent to a loan being charged off); an adequate allowance for credit losses; and continuing education and training to ensure lending expertise. Diversification by loan product is maintained through offering commercial loans, 1-4 family mortgages, and a full range of consumer loans. 47 Table of Contents The Company monitors its loan portfolio prudently. The Director’s Loan Committee of the Company’s Board of Directors is designated to receive required loan reports, oversee loan policy, and approve loans above authorized individual and Management Loan Committee lending limits. The Management Loan Committee, consisting of the President and Chief Executive Officer, Chief Financial Officer, Chief Credit Officer, Chief Risk Officer, Chief Loan Officer, EVP-Strategic Lending, and the SVP-Commercial Lending, reviews certain loan transactions and implements the Board-approved loan policy.