OSBC

​ Overview ​ The following discussion provides additional information regarding our operations for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, and our financial condition at June 30, 2026, compared to December 31, 2025. This discussion should be read in conjunction with our consolidated financial statements as well as the financial and statistical data appearing elsewhere in this report and our Form 10-K for the year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of future results. Dollar amounts presented in the following tables are in thousands, except per share data, and June 30, 2026 and 2025 amounts are unaudited. Certain items in prior periods have been reclassified to conform to the current presentation. ​ In this report, unless the context suggests otherwise, references to the “Company,” “we,” “us,” and “our” mean the combined business of Old Second Bancorp, Inc. and its subsidiary bank, Old Second National Bank (the “Bank”). ​ We have made, and will continue to make, various forward-looking statements with respect to financial and business matters. Comments regarding our business that are not historical facts are considered forward-looking statements that involve inherent risks and uncertainties. Actual results may differ materially from those contained in these forward-looking statements. For additional information regarding our cautionary disclosures, see the “Cautionary Note Regarding Forward-Looking Statements” on page 3 of this report. ​ Business Overview ​ The Company is a bank holding company headquartered in Aurora, Illinois. Through our wholly-owned subsidiary bank, Old Second National Bank, a national banking organization also headquartered in Aurora, Illinois, we offer a wide range of financial services through our 54 banking centers located in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. These banking centers offer access to a full range of traditional retail and commercial banking services including treasury management operations as well as fiduciary and wealth management services. We focus our business on establishing and maintaining relationships with our clients while maintaining a commitment to provide for the financial services needs of the communities in which we operate. We emphasize relationships with individual customers as well as small to medium-sized businesses throughout our market area. We also have extensive wealth management services, which include a registered investment advisory platform in addition to trust administration and trust services related to personal and corporate trusts and employee benefit plan administration services. ​ On July 1, 2025, we completed our previously announced acquisition of Bancorp Financial, Inc. (“Bancorp Financial”), pursuant to the agreement and plan of merger dated February 24, 2025. At the effective time of the acquisition, Bancorp Financial merged with and into the Company, with the Company continuing as the surviving corporation. Immediately following the merger, Evergreen Bank Group (“Evergreen”), an Illinois-chartered banking corporation and wholly-owned subsidiary of Bancorp Financial, merged with and into Old Second National Bank, with the Bank continuing as the surviving bank. Under the terms of the merger agreement, each share of Bancorp Financial common stock outstanding immediately prior to the effective time was converted into the right to receive 2.5814 shares of Old Second common stock and $15.93 in cash, without interest, with cash paid in lieu of any fractional shares. ​ As of July 1, 2025, Bancorp Financial had approximately $1.43 billion of total assets, $1.20 billion of total loans, and $1.23 billion of total deposits. The consideration paid totaled $189.4 million and consisted of 7.9 million shares of Old Second common stock and $48.9 million in cash. The systems conversion was successfully completed in October 2025. As of June 30, 2026, all acquisition related expenses have been reported and the measurement period is closed. ​ Our results of operations depend generally on net interest income, which is the difference between interest income from interest-earning assets and interest expense on interest-bearing liabilities. Net interest income is affected by regulatory, economic and competitive factors that influence interest rates, loan demand and deposit flows. In addition, we are subject to interest rate risk to the degree that our interest-earning assets mature or reprice at different times, or at different speeds, than our interest-bearing liabilities. Our results of operations are also affected by noninterest income, such as service charges, wealth management fees, loan fees, gains from the sale of newly originated loans, gains or losses on investments and certain other noninterest related items. Our principal operating expenses, aside from interest expense, consist of compensation and employee benefits, occupancy costs, professional fees, data processing expenses and provision for credit losses. We are significantly impacted by prevailing economic conditions, including federal monetary and fiscal policies, and federal regulations of financial institutions. Deposit balances are influenced by numerous factors such as competing investments, the level of income and the personal rate of savings within our market areas. Factors influencing lending activities include the demand for housing and the interest rate pricing competition from other lending institutions. 44 Table of Contents ​ As of June 30, 2026, all of our capital ratios were in excess of all regulatory requirements. While we believe that we have sufficient capital to withstand an extended economic recession, our reported and regulatory capital ratios could be adversely impacted by credit losses. ​ Financial Overview ​ Net income for the second quarter of 2026 was $28.2 million, or $0.54 per diluted share, compared to $25.6 million, or $0.48 per diluted share, for the first quarter of 2026, and $21.8 million, or $0.48 per diluted share, for the second quarter of 2025. Net income increased compared to the prior year like quarter, primarily due to the Bancorp Financial acquisition and the related growth in net interest income. Variances in the year over year period included an increase of $26.0 million in interest and dividend income and a $2.4 million increase in noninterest income, partially offset by a $6.9 million increase in interest expense, a $5.0 million increase in provision for credit losses, a $7.8 million increase in noninterest expense, and a $2.3 million increase in provision for income taxes. Net income in the second quarter of 2026 was negatively impacted by provision for credit losses of $7.5 million, compared to $9.5 million and $2.5 million recorded in the first quarter of 2026 and second quarter of 2025, respectively. Adjusted net income, a non-GAAP financial measure that excludes mortgage servicing rights mark to market gains or losses, net securities gains or losses, and acquisition related costs, net of gains on branch sales, as applicable, was $28.7 million for the second quarter of 2026, compared to $26.0 million for the first quarter of 2026, and $22.8 million for the second quarter of 2025. ​ See the discussion entitled “Non-GAAP Financial Measures” on page 47, as well as the table below, which provides a reconciliation of this non-GAAP measure to the most comparable GAAP equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income and Earnings Per Share - GAAP and Adjusted ​ Three Months Ended ​ ​ ​ Six Months Ended ​ ​ June 30, ​ March 31, ​ June 30, ​ ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes (GAAP) ​ $ 37,838 ​ $ 34,064 ​ $ 29,213 ​ ​ ​ $ 71,902 ​ $ 55,413 ​ Pre-tax income adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MSR losses ​ ​ 152 ​ ​ 152 ​ ​ 531 ​ ​ ​ ​ 304 ​ ​ 1,101 ​ Acquisition related costs, net of (gains) losses on branch sales ​ ​ 526 ​ ​ 349 ​ ​ 810 ​ ​ ​ ​ 875 ​ ​ 1,264 ​ Adjusted net income before taxes ​ ​ 38,516 ​ ​ 34,565 ​ ​ 30,554 ​ ​ ​ ​ 73,081 ​ ​ 57,778 ​ Taxes on adjusted net income ​ ​ 9,832 ​ ​ 8,604 ​ ​ 7,730 ​ ​ ​ ​ 18,436 ​ ​ 14,349 ​ Adjusted net income (non-GAAP) ​ $ 28,684 ​ $ 25,961 ​ $ 22,824 ​ ​ ​ $ 54,645 ​ $ 43,429 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share (GAAP) ​ $ 0.55 ​ $ 0.49 ​ $ 0.49 ​ ​ ​ $ 1.04 ​ $ 0.93 ​ Diluted earnings per share (GAAP) ​ ​ 0.54 ​ ​ 0.48 ​ ​ 0.48 ​ ​ ​ ​ 1.02 ​ ​ 0.91 ​ Adjusted basic earnings per share (non-GAAP) ​ ​ 0.56 ​ ​ 0.49 ​ ​ 0.50 ​ ​ ​ ​ 1.05 ​ ​ 0.96 ​ Adjusted diluted earnings per share (non-GAAP) ​ ​ 0.55 ​ ​ 0.49 ​ ​ 0.50 ​ ​ ​ ​ 1.04 ​ ​ 0.95 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total average assets ​ ​ 6,852,937 ​ ​ 6,859,164 ​ ​ 5,736,704 ​ ​ ​ ​ 6,856,033 ​ ​ 5,705,074 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average assets (GAAP) ​ ​ 1.65 % ​ 1.51 % ​ 1.53 % ​ ​ ​ 1.58 % ​ 1.47 % Adjusted return on average assets (non-GAAP) ​ ​ 1.68 ​ ​ 1.53 ​ ​ 1.60 ​ ​ ​ ​ 1.61 ​ ​ 1.53 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following provides an overview of some of the factors impacting our financial performance for the three-month period ended June 30, 2026, compared to the like period ended June 30, 2025: ​ ● Net interest and dividend income was $83.3 million for the second quarter of 2026, compared to $64.2 million for the second quarter of 2025. The increase in net interest and dividend income in the second quarter of 2026 was primarily driven by the acquisition of Bancorp Financial, and the resultant growth in loan interest and fee income. ​ ● We recorded a net provision for credit losses on loans and leases of $7.5 million in the second quarter of 2026, driven by quarterly net charge-offs of $9.2 million. We recorded a net provision for credit losses of $2.5 million in the second quarter of 2025, $2.2 million of which was related to credit losses on loans and leases. ​ ● Noninterest income was $13.3 million for the second quarter of 2026, compared to $10.9 million for the second quarter of 2025, which is an increase of $2.4 million, or 21.7%. Contributing to the higher noninterest income was a $551,000 increase in other income as a result of powersport and other consumer fee income. Also contributing to the growth in noninterest income during the quarter, compared to the prior year like quarter, were increases in wealth management, residential mortgage banking revenue primarily due to a decrease in MSR mark to market losses, and an increase in the cash surrender value of BOLI as a result of an increase in the market value of our COLI policies due primarily to more favorable market interest rates. ​ 45 Table of Contents ● Noninterest expense was $51.3 million for the second quarter of 2026, compared to $43.4 million for the second quarter of 2025, an increase of $7.8 million, or 18.0%. The increase in noninterest expense in the second quarter of 2026, compared to the prior year like quarter, was primarily due to the Bancorp Financial acquisition and the corresponding growth in employees and operations, which resulted in higher salaries and employee benefits, and increases in occupancy, furniture and equipment, computer and data processing, consumer credit expense, and other expense. Growth in consumer credit expense is attributable to the acquired powersport loan portfolio and consists primarily of title fees, credit checks, collection expenses, statement costs, and the cost of the onboarding software utilized. ​ ● We had a provision for income tax expense of $9.7 million for the second quarter of 2026, compared to a provision for income tax expense of $7.4 million for the second quarter of 2025. The effective tax rate for these two periods was 25.5% and 25.3%, respectively. ​ ● As of June 30, 2026, total loans decreased by $6.3 million compared to the year ended December 31, 2025, but increased $1.25 billion compared to June 30, 2025. The increase from the prior year like period is primarily driven by the $1.20 billion of loans acquired in our acquisition of Bancorp Financial. ​ ● Nonaccrual loans totaled $53.7 million as of June 30, 2026, which is an increase of $5.8 million compared to December 31, 2025, and an increase of $21.8 million compared to June 30, 2025. The increase in nonaccrual loans as of June 30, 2026, compared to December 31, 2025, was primarily due to inflows of $23.6 million on 73 loans, consisting primarily of 19 commercial loans totaling $18.5 million. The inflows are partially offset by $5.0 million of paid off nonaccrual loans, $6.6 million of upgraded or charged-off loans, and $6.0 million of reduction of principal from payments and partial charge offs. The increase in nonaccrual loans year over year is partially due to the growth in the loan portfolio due to the Bancorp Financial acquisition, as well as two larger credits which moved to nonperforming status in the first quarter and with partial charge-offs taken in the second quarter of 2026 within the commercial loan types. These two credits had an aggregate balance of $16.5 million, in the first quarter, before related charge-offs of $3.0 million in the second quarter. The increase in loans past due 90 days or more was driven primarily by the two commercial credits totaling $16.5 million previously mentioned, as well as an $8.5 million commercial real estate-investor loan that was placed on nonaccrual status during the second quarter of 2026. Nonperforming loans as a percent of total loans was 1.1% as of June 30, 2026, compared to 1.0% as of December 31, 2025, and 0.8% as of June 30, 2025. Classified assets decreased to $133.5 million as of June 30, 2026, reflecting a decrease of $19.4 million, or 12.7%, from December 31, 2025, but an increase of $29.2 million, or 28.0%, from June 30, 2025. ​ Critical Accounting Estimates ​ Our consolidated financial statements are prepared based on the application of accounting policies in accordance with generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. These policies require reliance on estimates and assumptions which may prove inaccurate or are subject to variations. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. Changes in underlying factors, assumptions, or estimates could have a material impact on our future financial condition and results of operations. ​ Of the significant accounting policies used in the preparation of our consolidated financial statements, we have identified certain items as critical accounting policies based on the associated estimates, assumptions, judgments and complexity. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our critical accounting policies or the estimates made pursuant to those policies during the most recent quarter from those disclosed in our 2025 Annual Report Form 10-K. ​ ​ 46 Table of Contents ​ Non-GAAP Financial Measures ​ This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the presentation of net interest income and net interest margin on a tax equivalent (“TE”) basis, adjusted net income, adjusted basic and diluted earnings per share, and our adjusted efficiency ratio. Management believes that the presentation of these non-GAAP financial measures (a) provides important supplemental information that contributes to a proper understanding of our operating performance, (b) enables a more complete understanding of factors and trends affecting our business, and (c) allows investors to evaluate our performance in a manner similar to management, the financial services industry, bank stock analysts, and bank regulators. Management uses non-GAAP measures as follows: in the preparation of our operating budgets, monthly financial performance reporting, and in our presentation of our performance to investors. However, we acknowledge that these non-GAAP financial measures have a number of limitations. Limitations associated with non-GAAP financial measures include the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These measures should not be considered an alternative to our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is presented below or alongside the first instance where each non-GAAP financial measure is used. Results of Operations ​ Overview ​ Three months ended June 30, 2026 and 2025 Our income before taxes was $37.8 million in the second quarter of 2026, compared to $29.2 million in the second quarter of 2025. Net interest and dividend income increased $19.1 million, and provision for credit losses increased $5.0 million in the second quarter of 2026, compared to the like 2025 quarter. Income before taxes was also affected by a $2.4 million increase in noninterest income and a $7.8 million increase in noninterest expense. The noninterest expense increase of $7.8 million is primarily due to a $3.2 million increase in salary and employee benefits expense primarily attributable to the additional employees retained in the Bancorp Financial acquisition as well as increases in stock comp expense, payroll taxes, 401(k) expense, and deferred compensation expense. Also contributing to the increase in noninterest expense was a $641,000 increase in occupancy, furniture and equipment, a $525,000 increase in computer and data processing, a $1.7 million increase in consumer credit expense, and a $1.3 million increase in other expenses, which were all primarily driven by the additional operations assumed from the Bancorp Financial acquisition. Total acquisition costs of $526,000 were recorded as a result of the Bancorp Financial acquisition during the three months ended June 30, 2026. Our net income was $28.2 million, or $0.54 per diluted share, for the second quarter of 2026, compared to net income of $21.8 million, or $0.48 per diluted share, for the second quarter of 2025. The Bank remains well positioned to navigate uncertain macroeconomic conditions. We have proactively addressed interest rate risk, maintained disciplined expense management, and ensured robust daily liquidity oversight. In addition, our liquidity metrics remain solid, and our short-duration securities portfolio provides flexibility for near-term funding requirements. ​ Six months ended June 30, 2026 and 2025 Our income before taxes was $71.9 million for the six months ended June 30, 2026, compared to $55.4 million for the six months ended June 30, 2025. This increase in pretax income was primarily due to a $37.3 million increase in net interest and dividend income and a $4.8 million increase in noninterest income. These changes were partially offset by a $12.1 million increase in provision for credit losses, a $13.5 million increase in noninterest expense, and a $4.4 million increase in provision for income taxes. Our net income was $53.8 million, or $1.02 per diluted share, for the six months ended June 30, 2026, compared to net income of $41.7 million, or $0.91 per diluted share, for the same period of 2025. ​ Net interest and dividend income was $164.5 million for the six months ended June 30, 2026, compared to $127.1 million for the same period of 2025. The $37.3 million increase was primarily driven by an increase in loan related income and fees of $53.4 million due to the loan portfolio acquired from Bancorp Financial. Partially offsetting the increase in net interest and dividend income was an increase of $13.4 million in interest expense in the first six months of 2026, compared to the first six months of 2025, driven by an increase in deposit costs due to the deposits assumed in the Bancorp Financial acquisition. Also contributing to the rise in interest expense was an increase in other short-term borrowings expense due to a higher FHLB advance volume based on liquidity needs in the 2026 period. 47 Table of Contents ​ Net Interest Income ​ Net interest income, which is our primary source of earnings, is the difference between income earned on interest-earning assets, such as loans and investment securities, accretion income on purchased loans, dividend income earned on certain equity investments, and expense incurred on interest-bearing liabilities, such as deposits and borrowings. Net interest income depends upon the relative mix of interest-earning assets and interest-bearing liabilities, the ratio of interest-earning assets to total assets and of interest-bearing liabilities to total funding sources, and movements in market interest rates. Our net interest income can be significantly influenced by a variety of factors, including overall loan demand, economic conditions, credit risk, the amount of nonearning assets including nonperforming loans and OREO, the amounts of and rates at which assets and liabilities reprice, variances in prepayment of loans and securities, early withdrawal of deposits, exercise of call options on borrowings or securities, a general rise or decline in interest rates, changes in the slope of the yield-curve, and balance sheet growth or contraction. ​ Three months ended June 30, 2026 and 2025 ​ Net interest and dividend income was $83.3 million in the second quarter of 2026, compared to $64.2 million in the second quarter of 2025. The $19.1 million increase was driven by an increase in interest income, primarily related to the powersport loan portfolio recorded due to the acquisition of Bancorp Financial. A net increase of $6.9 million in interest expense in the second quarter of 2026 negatively impacted net interest and dividend income compared to the second quarter of 2025, driven by the higher cost deposits assumed from Bancorp Financial, and increased short-term borrowing balances driven by the liquidity needed to fund the Bancorp Financial acquisition. ​ The year over year yield increase of 66 basis points on interest earning assets was primarily driven by higher loan balances and higher yielding consumer credits and related accretion on the acquired Bancorp Financial portfolio, partially offset by a slight decline on investment yields. Average balances of loans and loans held for sale increased $1.26 billion in the second quarter of 2026 compared to the prior year like quarter, with a corresponding increase to the tax equivalent yield on the loan portfolio of 63 basis points year over year due to loan portfolios acquired from Bancorp Financial. Average balances of securities available for sale decreased $94.1 million in the second quarter of 2026 compared to the prior year like quarter, and showed a decrease to the tax equivalent yield on the securities available for sale portfolio of three basis points year over year. ​ The cost of interest bearing deposits increased 17 basis points for the quarter ended June 30, 2026, from 130 basis points for the quarter ended June 30, 2025. A 37-basis point increase in the cost of savings accounts drove a significant portion of the overall increase from the prior year like quarter, primarily due to the higher rate deposit accounts assumed in the Bancorp Financial acquisition. In addition, average time deposits increased $272.5 million due to the Bancorp Financial acquisition; both higher average balances and higher rates offered by Bancorp Financial resulted in a $1.7 million increase in time deposit interest expense. We will continue to control the cost of funds by monitoring market activity as well as allowing previously exception-priced deposits and the brokered CDs acquired from Bancorp Financial to runoff naturally. ​ The increase of $312.8 million year over year of average FHLB advances was based on daily liquidity needs due to the changes in the funding mix in part due to necessary use of cash on the Bancorp Financial acquisition and was the primary driver of the $3.0 million increase to interest expense on other short-term borrowings. The elevated short-term borrowings balance is anticipated to continue, assuming continued loan growth and securities reinvestment. The increase of $14.8 million year over year of average notes payable and other borrowings was due to the FHLB long-term putable advances assumed in the Bancorp Financial acquisition and was the reason for the $156,000 increase to interest expense on notes payable and other borrowings. The $25.1 million decrease in average subordinated debt was due to the $30.0 million partial redemption in the second quarter of 2026, which reduced the prior $60.0 million principal balance then outstanding. The subordinated debt changed from a fixed to floating rate; in addition, debt issuance costs of $213,000 were accelerated, resulting in a $129,000 increase in interest expense on a lower average balance. Junior subordinated debt interest expense was essentially flat over each of the periods presented. ​ Our net interest margin (GAAP) increased 38 basis points to 5.21% for the three months ended June 30, 2026, compared to 4.83% for the three months ended June 30, 2025. Our net interest margin (TE) increased 38 basis points to 5.23% for the three months ended June 30, 2026, compared to 4.85% for the three months ended June 30, 2025. The increase in the current period, compared to the prior year like period, is primarily due to the Bancorp Financial acquisition and the resulting increase in loan yields, partially offset by higher interest expense related to the larger average deposit balances and interest on other short-term borrowings. See the discussion entitled “Non-GAAP Financial Measures,” above, and the table on page 53 that provides a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. ​ 48 Table of Contents ​ Three months ended June 30, 2026 and March 31, 2026 ​ The increased yield of 11 basis points on interest earning assets for the three months ended June 30, 2026 as compared to the linked period was primarily driven by the increased yields on loans and securities. Changes in the market interest rate environment impact earning assets at varying intervals depending on the repricing timeline of loans, as well as the securities maturity, paydown and purchase activities. ​ Average balances of interest bearing deposit accounts have decreased $81.7 million since the first quarter of 2026 through the second quarter of 2026, from $3.83 billion to $3.74 billion. The decrease is driven by a $94.2 million decrease in time deposits as exception priced deposits, mainly time deposits, and brokered deposits from the Bancorp Financial acquisition, run off, partially offset by a $19.8 million increase in lower cost NOW accounts. The significant time deposit average balance decrease led to the $1.0 million decrease in time deposit costs, compared to the prior linked quarter, which accounted for a large majority of the $653,000 total decrease in deposit interest expense, as all other deposit category interest costs increased. As a result, time deposits were the primary driver in the decrease in the costs of interest bearing deposits from 152 basis points for the quarter ended March 31, 2026, to 147 basis points for the quarter ended June 30, 2026. ​ Borrowing costs increased in the second quarter of 2026, compared to the first quarter of 2026. Changes in our borrowing costs are generally driven by fluctuations in balance and related rates on other short-term borrowings, which are overnight FHLB advances; these fluctuations are based on the daily liquidity needs during the period. The increase in borrowing expense over the prior linked period was primarily due to the $123.7 million increase in average balance of other short-term borrowings and the resulting increase in interest expense. Also contributing to the increase in interest expense was the subordinated debt changing from a fixed to floating rate and the acceleration of debt issuance costs of $213,000 due to the partial redemption, resulting in a net $129,000 increase to subordinated debt interest expense quarter over linked quarter. ​ Our net interest margin, for both GAAP and tax equivalent (“TE”) presentations, showed noticeable growth over the prior linked quarter period and over the prior year like quarter discussed above. Our net interest margin (GAAP) increased nine basis points to 5.21% for the second quarter of 2026, compared to 5.12% for the first quarter of 2026. Our net interest margin (TE) increased nine basis points to 5.23% for the second quarter of 2026, compared to 5.14% for the first quarter of 2026. The increase in net interest margin for the second quarter of 2026, compared to the prior linked quarter, was driven by the increase in yields on loans and loans held for sale, partially offset by an increase in the cost of interest bearing liabilities. See the discussion entitled “Non-GAAP Financial Measures,” above, and the table on page 53 that provides a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. ​ ​ 49 Table of Contents ​ Six months ended June 30, 2026 and 2025 ​ The year over year increase of 60 basis points on interest earning assets was primarily driven by increased yields on loans and loans held for sale due to the Bancorp Financial acquisition. Average securities available-for-sale decreased $80.0 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, due to maturities, calls, and paydowns during the year over year period. Due to market interest rate increases year over year, securities available-for-sale interest income yields were nominally higher in the six months ended June 30, 2026, but lower average balances led to an overall decrease in securities income to $20.9 million for the six months ended June 30, 2026, compared to $22.3 million for the like 2025 period. Average loans, including loans held for sale, increased $1.26 billion in the six months ended June 30, 2026, compared to the six months ended June 30, 2025, due to the Bancorp Financial acquisition. Increased loan yields and higher average balances resulted in $177.1 million of loan interest income in the six months ended June 30, 2026, compared to $123.6 million in the like 2025 period. ​ Average balances of interest bearing deposit accounts have increased significantly for the six month period year over year. For the six months ended June 30, 2026, compared to the six months ended June 30, 2025, this reflected a $3.11 billion to $3.78 billion change driven by the Bancorp Financial acquisition, with these increases reflected in all categories. As a result of the Bancorp Financial acquisition and the deposits assumed, the rate of overall interest bearing deposits increased by 21 basis points, to 150 basis points from 129 basis points for the year over year period. A 38-basis point increase in the cost of savings accounts as of June 30, 2026, compared to June 30, 2025, was the primary driver behind the interest bearing deposit rate increase, as a large portion of the deposits assumed in the Bancorp Financial acquisition were within this deposit category. Interest expense paid on time deposits also increased year over year from $9.3 million for the six months ended June 30, 2025 to $13.4 million for the six months ended June 30, 2026. However, the interest rate on average time deposits remained relatively flat compared to the prior year like period as we continue to allow previously exception-priced deposits and the brokered CDs acquired from Bancorp Financial to runoff naturally. ​ Our borrowing interest expense increased over the past twelve months due to higher FHLB advance volumes as well as borrowings assumed in the Bancorp Financial acquisition. This resulted in an increase in average borrowings of $240.9 million compared to the six months ended June 30, 2025, with an accompanying increase of $5.2 million of interest expense on borrowings. Subordinated debt average balances decreased by $12.6 million in the year over year period as a partial redemption of $30.0 million of the principal balance occurred in the second quarter of 2026. At the same time as the partial redemption, the subordinated debt rate changed from fixed to floating and $213,000 of issuance costs were recognized, resulting in a $129,000 increase in interest expense on lower average balances compared to the prior year like period. Junior subordinated debt interest expense remained flat over the periods presented. ​ Our net interest margin (GAAP) increased 33 basis points to 5.17% for the six months ended June 30, 2026, compared to 4.84% for the six months ended June 30, 2025. Our net interest margin (TE) increased 31 basis points to 5.18% for the six months ended June 30, 2026, compared to 4.87% for the six months ended June 30, 2025. The increase in the current period, compared to the prior year like period, is primarily due to the Bancorp Financial acquisition and the resulting increase in loan yields, partially offset by higher interest expense related to the larger average deposit balances and interest on other short-term borrowings. See the discussion entitled “Non-GAAP Financial Measures,” above, and the table on page 53 that provides a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. ​ We continue to observe competitive pressure to maintain reduced interest rates on loans retained at renewal. While our loan prices are targeted to achieve certain returns on equity, significant competition for commercial and industrial loans as well as commercial real estate loans has put pressure on loan yields, and our stringent underwriting standards limit our ability to make higher-yielding loans in these loan types. ​ ​ 50 Table of Contents ​ The following tables set forth certain information relating to our average consolidated balance sheets and reflect the yield on average earning assets and cost of average interest bearing liabilities for the periods indicated. These yields reflect the related interest, on an annualized basis, divided by the average balance of assets or liabilities over the applicable period. Average balances are derived from daily balances. For purposes of discussion, net interest income and net interest income to total earning assets in the following tables have been adjusted to a non-GAAP TE basis using a marginal rate of 21% in 2026 and 2025 to compare returns more appropriately on tax-exempt loans and securities to other earning assets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Analysis of Average Balances, Tax Equivalent Income / Expense and Rates (unaudited) ​ ​ Quarters Ended ​ June 30, 2026 ​ March 31, 2026 ​ June 30, 2025 ​ Average ​ Income / ​ Rate ​ Average ​ Income / ​ Rate ​ Average ​ Income / ​ Rate ​ Balance ​ Expense ​ % ​ Balance ​ Expense ​ % ​ Balance ​ Expense ​ % Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest earning deposits with financial institutions $ 64,839 ​ $ 527 ​ 3.26 ​ $ 67,571 ​ $ 549 ​ 3.30 ​ $ 166,366 ​ $ 1,784 ​ 4.30 Securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Taxable ​ 955,176 ​ ​ 9,088 ​ 3.82 ​ ​ 969,194 ​ ​ 8,949 ​ 3.74 ​ ​ 1,040,472 ​ ​ 9,959 ​ 3.84 Non-taxable (TE)1 ​ 140,876 ​ ​ 1,433 ​ 4.08 ​ ​ 146,299 ​ ​ 1,462 ​ 4.05 ​ ​ 149,651 ​ ​ 1,556 ​ 4.17 Total securities(TE)1 ​ 1,096,052 ​ ​ 10,521 ​ 3.85 ​ ​ 1,115,493 ​ ​ 10,411 ​ 3.79 ​ ​ 1,190,123 ​ ​ 11,515 ​ 3.88 Dividends from FHLBC and FRBC ​ 36,676 ​ ​ 535 ​ 5.85 ​ ​ 31,540 ​ ​ 512 ​ 6.58 ​ ​ 19,200 ​ ​ 273 ​ 5.70 Loans and loans held-for-sale1,2 ​ 5,223,093 ​ ​ 89,921 ​ 6.91 ​ ​ 5,207,744 ​ ​ 87,194 ​ 6.79 ​ ​ 3,960,650 ​ ​ 62,002 ​ 6.28 Total interest earning assets ​ 6,420,660 ​ ​ 101,504 ​ 6.34 ​ ​ 6,422,348 ​ ​ 98,666 ​ 6.23 ​ ​ 5,336,339 ​ ​ 75,574 ​ 5.68 Cash and due from banks ​ 46,700 ​ ​ - ​ - ​ ​ 48,252 ​ ​ - ​ - ​ ​ 47,875 ​ ​ - ​ - Allowance for credit losses on loans ​ (72,418) ​ ​ - ​ - ​ ​ (71,869) ​ ​ - ​ - ​ ​ (41,544) ​ ​ - ​ - Other noninterest bearing assets ​ 457,995 ​ ​ - ​ - ​ ​ 460,433 ​ ​ - ​ - ​ ​ 394,034 ​ ​ - ​ - Total assets $ 6,852,937 ​ ​ ​ ​ ​ ​ $ 6,859,164 ​ ​ ​ ​ ​ ​ $ 5,736,704 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOW accounts $ 717,468 ​ $ 897 ​ 0.50 ​ $ 697,692 ​ $ 823 ​ 0.48 ​ $ 653,334 ​ $ 681 ​ 0.42 Money market accounts ​ 948,319 ​ ​ 4,400 ​ 1.86 ​ ​ 946,075 ​ ​ 4,148 ​ 1.78 ​ ​ 832,777 ​ ​ 3,920 ​ 1.89 Savings accounts ​ 1,109,381 ​ ​ 2,215 ​ 0.80 ​ ​ 1,118,979 ​ ​ 2,176 ​ 0.79 ​ ​ 938,836 ​ ​ 1,005 ​ 0.43 Time deposits ​ 968,464 ​ ​ 6,199 ​ 2.57 ​ ​ 1,062,623 ​ ​ 7,217 ​ 2.75 ​ ​ 695,946 ​ ​ 4,508 ​ 2.60 Interest bearing deposits ​ 3,743,632 ​ ​ 13,711 ​ 1.47 ​ ​ 3,825,369 ​ ​ 14,364 ​ 1.52 ​ ​ 3,120,893 ​ ​ 10,114 ​ 1.30 Securities sold under repurchase agreements ​ 21,337 ​ ​ 40 ​ 0.75 ​ ​ 24,795 ​ ​ 50 ​ 0.82 ​ ​ 35,419 ​ ​ 56 ​ 0.63 Other short-term borrowings ​ 312,803 ​ ​ 2,989 ​ 3.83 ​ ​ 189,056 ​ ​ 1,791 ​ 3.84 ​ ​ - ​ ​ - ​ - Junior subordinated debentures ​ 25,774 ​ ​ 289 ​ 4.50 ​ ​ 25,774 ​ ​ 296 ​ 4.66 ​ ​ 25,773 ​ ​ 288 ​ 4.48 Subordinated debt ​ 34,373 ​ ​ 675 ​ 7.88 ​ ​ 59,564 ​ ​ 546 ​ 3.72 ​ ​ 59,500 ​ ​ 546 ​ 3.68 Notes payable and other borrowings ​ 14,844 ​ ​ 156 ​ 4.22 ​ ​ 14,831 ​ ​ 155 ​ 4.24 ​ ​ - ​ ​ - ​ - Total interest bearing liabilities ​ 4,152,763 ​ ​ 17,860 ​ 1.73 ​ ​ 4,139,389 ​ ​ 17,202 ​ 1.69 ​ ​ 3,241,585 ​ ​ 11,004 ​ 1.36 Noninterest bearing deposits ​ 1,745,475 ​ ​ - ​ - ​ ​ 1,738,504 ​ ​ - ​ - ​ ​ 1,729,287 ​ ​ - ​ - Other liabilities ​ 55,582 ​ ​ - ​ - ​ ​ 73,284 ​ ​ - ​ - ​ ​ 59,578 ​ ​ - ​ - Stockholders' equity ​ 899,117 ​ ​ - ​ - ​ ​ 907,987 ​ ​ - ​ - ​ ​ 706,254 ​ ​ - ​ - Total liabilities and stockholders' equity $ 6,852,937 ​ ​ ​ ​ ​ ​ $ 6,859,164 ​ ​ ​ ​ ​ ​ $ 5,736,704 ​ ​ ​ ​ ​ Net interest income (GAAP) ​ ​ ​ $ 83,329 ​ ​ ​ ​ ​ ​ $ 81,144 ​ ​ ​ ​ ​ ​ $ 64,234 ​ ​ Net interest margin (GAAP) ​ ​ ​ ​ ​ ​ 5.21 ​ ​ ​ ​ ​ ​ ​ 5.12 ​ ​ ​ ​ ​ ​ ​ 4.83 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income (TE)1 ​ ​ ​ $ 83,644 ​ ​ ​ ​ ​ ​ $ 81,464 ​ ​ ​ ​ ​ ​ $ 64,570 ​ ​ Net interest margin (TE)1 ​ ​ ​ ​ ​ ​ 5.23 ​ ​ ​ ​ ​ ​ ​ 5.14 ​ ​ ​ ​ ​ ​ ​ 4.85 Interest bearing liabilities to earning assets ​ 64.68 % ​ ​ ​ ​ ​ ​ 64.45 % ​ ​ ​ ​ ​ ​ 60.75 % ​ ​ ​ ​ ​ 1 Represents a non-GAAP financial measure. See the discussion entitled “Reconciliation of Tax-Equivalent Non-GAAP Financial Measures” on page 53 that provides a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Tax equivalent basis is calculated using a marginal tax rate of 21% in 2026 and 2025, respectively. ​ 2 Interest income from loans is shown on a tax equivalent basis, which is a non-GAAP financial measure, as discussed in the table on page 53, and includes loan fee income of $2.0 million for the second quarter of 2026, loan fee income of $1.9 million for the first quarter of 2026, and loan fee income of $365,000 for the second quarter of 2025. Nonaccrual loans are included in the above-stated average balances. ​ ​ 51 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Analysis of Average Balances, Tax Equivalent Income / Expense and Rates (Dollars in thousands - unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ 2026 ​ 2025 ​ Average ​ Income / ​ Rate ​ Average ​ Income / ​ Rate ​ Balance ​ Expense ​ % ​ Balance ​ Expense ​ % Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest earning deposits with financial institutions $ 66,197 ​ $ 1,076 ​ 3.28 ​ $ 132,195 ​ $ 2,772 ​ 4.23 Securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Taxable ​ 962,146 ​ ​ 18,037 ​ 3.78 ​ ​ 1,033,392 ​ ​ 19,186 ​ 3.74 Non-taxable (TE)1 ​ 143,573 ​ ​ 2,895 ​ 4.07 ​ ​ 152,323 ​ ​ 3,151 ​ 4.17 Total securities (TE)1 ​ 1,105,719 ​ ​ 20,932 ​ 3.82 ​ ​ 1,185,715 ​ ​ 22,337 ​ 3.80 Dividends from FHLBC and FRBC ​ 34,123 ​ ​ 1,047 ​ 6.19 ​ ​ 19,320 ​ ​ 746 ​ 7.79 Loans and loans held-for-sale 1, 2 ​ 5,215,461 ​ ​ 177,115 ​ 6.85 ​ ​ 3,959,866 ​ ​ 123,628 ​ 6.30 Total interest earning assets ​ 6,421,500 ​ ​ 200,170 ​ 6.29 ​ ​ 5,297,096 ​ ​ 149,483 ​ 5.69 Cash and due from banks ​ 47,472 ​ ​ - ​ - ​ ​ 50,200 ​ ​ - ​ - Allowance for credit losses on loans ​ (72,145) ​ ​ - ​ - ​ ​ (42,538) ​ ​ - ​ - Other noninterest earning assets ​ 459,206 ​ ​ - ​ - ​ ​ 400,316 ​ ​ - ​ - Total assets $ 6,856,033 ​ ​ ​ ​ ​ ​ $ 5,705,074 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOW accounts $ 707,635 ​ $ 1,720 ​ 0.49 ​ $ 640,904 ​ $ 1,310 ​ 0.41 Money market accounts ​ 947,203 ​ ​ 8,548 ​ 1.82 ​ ​ 817,065 ​ ​ 7,313 ​ 1.80 Savings accounts ​ 1,114,153 ​ ​ 4,391 ​ 0.79 ​ ​ 939,859 ​ ​ 1,896 ​ 0.41 Time deposits ​ 1,015,283 ​ ​ 13,416 ​ 2.66 ​ ​ 710,549 ​ ​ 9,337 ​ 2.65 Interest bearing deposits ​ 3,784,274 ​ ​ 28,075 ​ 1.50 ​ ​ 3,108,377 ​ ​ 19,856 ​ 1.29 Securities sold under repurchase agreements ​ 23,057 ​ ​ 90 ​ 0.79 ​ ​ 34,977 ​ ​ 124 ​ 0.71 Other short-term borrowings ​ 251,271 ​ ​ 4,780 ​ 3.84 ​ ​ 718 ​ ​ 17 ​ 4.77 Junior subordinated debentures ​ 25,774 ​ ​ 585 ​ 4.58 ​ ​ 25,773 ​ ​ 576 ​ 4.51 Subordinated debentures ​ 46,899 ​ ​ 1,221 ​ 5.25 ​ ​ 59,489 ​ ​ 1,092 ​ 3.70 Notes payable and other borrowings ​ 14,838 ​ ​ 311 ​ 4.23 ​ ​ - ​ ​ - ​ - Total interest bearing liabilities ​ 4,146,113 ​ ​ 35,062 ​ 1.71 ​ ​ 3,229,334 ​ ​ 21,665 ​ 1.35 Noninterest bearing deposits ​ 1,742,009 ​ ​ - ​ - ​ ​ 1,716,406 ​ ​ - ​ - Other liabilities ​ 64,384 ​ ​ - ​ - ​ ​ 64,356 ​ ​ - ​ - Stockholders' equity ​ 903,527 ​ ​ - ​ - ​ ​ 694,978 ​ ​ - ​ - Total liabilities and stockholders' equity $ 6,856,033 ​ ​ ​ ​ ​ ​ $ 5,705,074 ​ ​ ​ ​ ​ Net interest income (GAAP) ​ ​ ​ $ 164,473 ​ ​ ​ ​ ​ ​ $ 127,138 ​ ​ Net interest margin (GAAP) ​ ​ ​ ​ ​ ​ 5.17 ​ ​ ​ ​ ​ ​ ​ 4.84 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income (TE)1 ​ ​ ​ $ 165,108 ​ ​ ​ ​ ​ ​ $ 127,818 ​ ​ Net interest margin (TE)1 ​ ​ ​ ​ ​ ​ 5.18 ​ ​ ​ ​ ​ ​ ​ 4.87 Interest bearing liabilities to earning assets ​ 64.57 % ​ ​ ​ ​ ​ ​ 60.96 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 Represents a non-GAAP financial measure. See the discussion entitled “Reconciliation of Tax-Equivalent Non-GAAP Financial Measures” on page 53 that provides a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent. Tax equivalent basis is calculated using a marginal tax rate of 21% in 2026 and 2025, respectively. ​ 2 Interest income from loans is shown on a tax equivalent basis, which is a non-GAAP financial measure, as discussed in the table on page 53, and includes loan fee income of $3.9 million and loan fee income of $910,000 for the six months ended June 30, 2026 and 2025, respectively. Nonaccrual loans are included in the above-stated average balances. ​ ​ 52 Table of Contents ​ Reconciliation of Tax-Equivalent (TE) Non-GAAP Financial Measures ​ Net interest and dividend income (TE) and net interest income (TE) to average interest earning assets are non-GAAP measures that have been adjusted on a TE basis using a marginal rate of 21% for 2026 and 2025 to compare returns more appropriately on tax-exempt loans and securities to other earning assets. The table below provides a reconciliation of each non-GAAP (TE) measure to the GAAP equivalent for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Six Months Ended ​ ​ ​ June 30, ​ March 31, ​ June 30, ​ ​ June 30, ​ Net Interest Margin ​ ​ ​ 2026 ​ ​ ​ 2026 ​ 2025 ​ ​ ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income (GAAP) ​ $ 101,189 ​ $ 98,346 ​ $ 75,238 ​ ​ $ 199,535 ​ $ 148,803 ​ Taxable-equivalent adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ ​ 14 ​ ​ 13 ​ ​ 9 ​ ​ ​ 27 ​ ​ 18 ​ Securities ​ ​ 301 ​ ​ 307 ​ ​ 327 ​ ​ ​ 608 ​ ​ 662 ​ Interest and dividend income (TE) ​ ​ 101,504 ​ ​ 98,666 ​ ​ 75,574 ​ ​ ​ 200,170 ​ ​ 149,483 ​ Interest expense (GAAP) ​ ​ 17,860 ​ ​ 17,202 ​ ​ 11,004 ​ ​ ​ 35,062 ​ ​ 21,665 ​ Net interest income (TE) ​ $ 83,644 ​ $ 81,464 ​ $ 64,570 ​ ​ $ 165,108 ​ $ 127,818 ​ Net interest income (GAAP) ​ $ 83,329 ​ $ 81,144 ​ $ 64,234 ​ ​ $ 164,473 ​ $ 127,138 ​ Average interest earning assets ​ $ 6,420,660 ​ $ 6,422,348 ​ $ 5,336,339 ​ ​ $ 6,421,500 ​ $ 5,297,096 ​ Net interest margin (GAAP) ​ ​ 5.21 % ​ 5.12 % ​ 4.83 % ​ ​ 5.17 % ​ 4.84 % Net interest margin (TE) ​ ​ 5.23 % ​ 5.14 % ​ 4.85 % ​ ​ 5.18 % ​ 4.87 % ​ ​ ​ ​ Noninterest Income ​ Three months ended June 30, 2026 and 2025 ​ The following table details the major components of noninterest income for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ Noninterest Income ​ Three Months Ended ​ Percent Change From ​ ​ ​ June 30, ​ March 31, ​ June 30, ​ March 31, ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Wealth management ​ $ 3,628 ​ $ 3,383 ​ $ 3,103 ​ 7.2 ​ 16.9 ​ Service charges on deposits ​ ​ 3,075 ​ ​ 3,130 ​ ​ 3,060 ​ (1.8) ​ 0.5 ​ Residential mortgage banking revenue ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Secondary mortgage fees ​ ​ 166 ​ ​ 121 ​ ​ 84 ​ 37.2 ​ 97.6 ​ MSRs mark to market loss ​ ​ (152) ​ ​ (152) ​ ​ (531) ​ - ​ (71.4) ​ Mortgage servicing income ​ ​ 464 ​ ​ 497 ​ ​ 472 ​ (6.6) ​ (1.7) ​ Net gain on sales of mortgage loans ​ ​ 640 ​ ​ 555 ​ ​ 550 ​ 15.3 ​ 16.4 ​ Total residential mortgage banking revenue ​ ​ 1,118 ​ ​ 1,021 ​ ​ 575 ​ 9.5 ​ 94.4 ​ Change in cash surrender value of BOLI ​ ​ 1,469 ​ ​ 1,082 ​ ​ 690 ​ 35.8 ​ 112.9 ​ Card related income ​ ​ 2,483 ​ ​ 2,350 ​ ​ 2,533 ​ 5.7 ​ (2.0) ​ Other income ​ ​ 1,488 ​ ​ 1,664 ​ ​ 937 ​ (10.6) ​ 58.8 ​ Total noninterest income ​ $ 13,261 ​ $ 12,630 ​ $ 10,898 ​ 5.0 ​ 21.7 ​ ​ ​ 53 Table of Contents ​ Noninterest income increased $631,000, or 5.0%, in the second quarter of 2026, compared to the first quarter of 2026, and increased $2.4 million, or 21.7%, compared to the second quarter of 2025. The increase from the first quarter of 2026 was primarily driven by a $245,000 increase in wealth management income due to growth in advisory, insurance – annuities, agent, estate, and person trust fees, and a $387,000 increase in the cash surrender value of BOLI due to changes in market interest rates on COLI investments. Also contributing to the increase in the second quarter of 2026, compared to the first quarter of 2026, was a $133,000 increase in card related income due to growth in debit card fees based on the higher volume of ATM activity and related fees. Partially offsetting the increases during the second quarter of 2026, compared to the first quarter of 2026, was a $176,000 decrease in other income due to a decrease in powersport related dealer charge-back income. ​ The increase in noninterest income of $2.4 million in the second quarter of 2026, compared to the second quarter of 2025, is primarily due to a $525,000 increase in wealth management income from growth in advisory, agent, and person trust fees, a $543,000 increase in residential mortgage banking revenue, primarily due to a $379,000 increase in MSRs mark to market valuations, and a $779,000 increase in the cash surrender value of BOLI due to changes in market interest rates on our COLI investments. Also contributing to the increase in noninterest income during the quarter was a $551,000 increase in other income due to powersport and consumer loan fees provided by the acquired Bancorp Financial loan portfolio. ​ Six months ended June 30, 2026 and 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest Income ​ Six Months Ended ​ ​ ​ ​ June 30, ​ June 30, ​ Percent ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Change Wealth management ​ $ 7,011 ​ $ 6,192 ​ 13.2 Service charges on deposits ​ ​ 6,205 ​ ​ 6,036 ​ 2.8 Residential mortgage banking revenue ​ ​ ​ ​ ​ ​ ​ ​ Secondary mortgage fees ​ ​ 287 ​ ​ 157 ​ 82.8 MSRs mark to market loss ​ ​ (304) ​ ​ (1,101) ​ 72.4 Mortgage servicing income ​ ​ 961 ​ ​ 952 ​ 0.9 Net gain on sales of mortgage loans ​ ​ 1,195 ​ ​ 1,014 ​ 17.9 Total residential mortgage banking revenue ​ ​ 2,139 ​ ​ 1,022 ​ 109.3 Change in cash surrender value of BOLI ​ ​ 2,551 ​ ​ 1,188 ​ 114.7 Card related income ​ ​ 4,833 ​ ​ 4,774 ​ 1.2 Other income ​ ​ 3,152 ​ ​ 1,887 ​ 67.0 Total noninterest income ​ $ 25,891 ​ $ 21,099 ​ 22.7 ​ Noninterest income increased $4.8 million, or 22.7%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. This increase was primarily driven by a $819,000 increase in wealth management income, a $1.1 million increase in mortgage banking revenue, comprised primarily of a $797,000 decrease in MSRs mark to market losses. In addition, noninterest income for the six month period ended June 30, 2026, compared to the like 2025 period, increased due to a $1.4 million increase in the cash surrender value of BOLI due to market interest rate changes on COLI investments and a $1.3 million increase in other income primarily driven by growth in powersport and consumer loan fees provided by the acquired Bancorp Financial loan portfolio. ​ ​ 54 Table of Contents ​ Noninterest Expense ​ Three months ended June 30, 2026 and 2025 ​ The following table details the major components of noninterest expense for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ Noninterest Expense ​ Three Months Ended ​ Percent Change From ​ ​ ​ June 30, ​ March 31, ​ June 30, ​ March 31, ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Salaries ​ $ 22,332 ​ $ 21,933 ​ $ 19,119 ​ 1.8 ​ 16.8 ​ Officers' incentive ​ ​ 2,240 ​ ​ 1,652 ​ ​ 2,921 ​ 35.6 ​ (23.3) ​ Benefits and other ​ ​ 5,531 ​ ​ 6,088 ​ ​ 4,910 ​ (9.1) ​ 12.6 ​ Total salaries and employee benefits ​ ​ 30,103 ​ ​ 29,673 ​ ​ 26,950 ​ 1.4 ​ 11.7 ​ Occupancy, furniture and equipment ​ ​ 5,118 ​ ​ 5,371 ​ ​ 4,477 ​ (4.7) ​ 14.3 ​ Computer and data processing ​ ​ 3,217 ​ ​ 3,375 ​ ​ 2,692 ​ (4.7) ​ 19.5 ​ FDIC insurance ​ ​ 759 ​ ​ 759 ​ ​ 642 ​ - ​ 18.2 ​ Net teller & bill paying ​ ​ 724 ​ ​ 716 ​ ​ 670 ​ 1.1 ​ 8.1 ​ General bank insurance ​ ​ 351 ​ ​ 353 ​ ​ 328 ​ (0.6) ​ 7.0 ​ Amortization of core deposit intangible ​ ​ 1,167 ​ ​ 1,176 ​ ​ 1,022 ​ (0.8) ​ 14.2 ​ Advertising and marketing expense ​ ​ 483 ​ ​ 551 ​ ​ 454 ​ (12.3) ​ 6.4 ​ Card related expense ​ ​ 1,604 ​ ​ 1,519 ​ ​ 1,489 ​ 5.6 ​ 7.7 ​ Professional fees ​ ​ 1,160 ​ ​ 1,299 ​ ​ 1,158 ​ (10.7) ​ 0.2 ​ Consumer credit expense ​ ​ 1,720 ​ ​ 1,522 ​ ​ 15 ​ 13.0 ​ N/M ​ Other real estate owned expense, net ​ ​ 52 ​ ​ (186) ​ ​ 35 ​ (128.0) ​ 48.6 ​ Other expense ​ ​ 4,794 ​ ​ 4,082 ​ ​ 3,487 ​ 17.4 ​ 37.5 ​ Total noninterest expense ​ $ 51,252 ​ $ 50,210 ​ $ 43,419 ​ 2.1 ​ 18.0 ​ Efficiency ratio (GAAP)1 ​ ​ 51.72 % ​ 52.40 % ​ 55.99 % ​ ​ ​ ​ Adjusted efficiency ratio (non-GAAP)2 ​ ​ 50.80 % ​ 51.70 % ​ 54.54 % ​ ​ ​ ​ ​ N/M – Not meaningful. ​ 1 The efficiency ratio shown in the table above is a GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits and OREO expenses, divided by the sum of net interest income and total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, and mark to market gains or losses on MSRs. ​ 2 The adjusted efficiency ratio shown in the table above is a non-GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits, OREO expenses, acquisition expense, net of gains or losses on branch sales, as applicable, divided by the sum of net interest income on a fully tax equivalent basis, total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, mark to market gains or losses on MSRs, and includes a tax equivalent adjustment on the change in cash surrender value of BOLI. See the discussion entitled “Non-GAAP Financial Measures” above and the table on page 57 that provides a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent. ​ Noninterest expense for the second quarter of 2026 increased $1.0 million, or 2.1%, compared to the first quarter of 2026, and increased $7.8 million, or 18.0%, compared to the second quarter of 2025. The increase in the second quarter of 2026, compared to the first quarter of 2026, was driven by a $430,000 increase in salaries and employee benefits with increases reflected primarily in salaries, officer incentive accruals, deferred compensation expense, and insurance premiums. Also contributing to the increase was a $712,000 increase in other expenses due to growth in director deferred compensation expense, a $172,000 increase in litigation related expense regarding two unrelated customer disputes with limited exposure that are both considered non-recurring in nature, and an accrual of $184,000 related to powersport loan gap insurance refunds due to customers related to loan prepayments. ​ The year over year increase in noninterest expense is primarily attributable to a $3.2 million increase in salaries and employee benefits, primarily due to the increased workforce from the Bancorp Financial acquisition as well as increases in annual base salary rates, stock compensation expense, payroll taxes, 401(k) expense, and deferred employee compensation expense in the second quarter of 2026. Partially offsetting the increase to salaries and employee benefits was a decrease in the officer incentive accrual due to certain performance metrics compared to budget. Also contributing to the increase in noninterest expense year over year was a $641,000 increase in occupancy, furniture and equipment, a $525,000 increase in computer and data processing expenses, a $1.7 million increase in consumer credit expense, and a $1.3 million increase in other expense primarily due to the effect of the Bancorp Financial acquisition and the corresponding growth in expenses. 55 Table of Contents ​ Six months ended June 30, 2026 and 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest Expense ​ Six Months Ended ​ ​ ​ ​ June 30, ​ June 30, ​ Percent ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Change Salaries ​ $ 44,265 ​ $ 37,923 ​ 16.7 Officers' incentive ​ ​ 3,892 ​ ​ 5,720 ​ (32.0) Benefits and other ​ ​ 11,619 ​ ​ 10,300 ​ 12.8 Total salaries and employee benefits ​ ​ 59,776 ​ ​ 53,943 ​ 10.8 Occupancy, furniture and equipment ​ ​ 10,489 ​ ​ 9,025 ​ 16.2 Computer and data processing ​ ​ 6,592 ​ ​ 5,040 ​ 30.8 FDIC insurance ​ ​ 1,518 ​ ​ 1,270 ​ 19.5 Net teller & bill paying ​ ​ 1,440 ​ ​ 1,328 ​ 8.4 General bank insurance ​ ​ 704 ​ ​ 658 ​ 7.0 Amortization of core deposit intangible ​ ​ 2,343 ​ ​ 2,059 ​ 13.8 Advertising and marketing expense ​ ​ 1,034 ​ ​ 683 ​ 51.4 Card related expense ​ ​ 3,123 ​ ​ 2,869 ​ 8.9 Professional fees ​ ​ 2,459 ​ ​ 2,253 ​ 9.1 Consumer credit expense ​ ​ 3,242 ​ ​ 40 ​ N/M Other real estate owned expense, net ​ ​ (134) ​ ​ 1,908 ​ (107.0) Other expense ​ ​ 8,876 ​ ​ 6,848 ​ 29.6 Total noninterest expense ​ $ 101,462 ​ $ 87,924 ​ 15.4 Efficiency ratio (GAAP)1 ​ ​ 52.06 % ​ 56.22 % ​ Adjusted efficiency ratio (non-GAAP)2 ​ ​ 51.24 % ​ 55.01 % ​ ​ N/M – Not meaningful. ​ 1 The efficiency ratio shown in the table above is a GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits and OREO expenses, divided by the sum of net interest income and total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, and mark to market gains or losses on MSRs. ​ 2 The adjusted efficiency ratio shown in the table above is a non-GAAP financial measure calculated as noninterest expense, excluding amortization of core deposits, OREO expenses, acquisition expense, net of gains or losses on branch sales, as applicable, divided by the sum of net interest income on a fully tax equivalent basis, total noninterest income less net gains or losses on securities, death benefit realized on BOLI, as applicable, mark to market gains or losses on MSRs, and includes a tax equivalent adjustment on the change in cash surrender value of BOLI. See the discussion entitled “Non-GAAP Financial Measures” above and the table on page 57 that provides a reconciliation of this non-GAAP financial measure to the most comparable GAAP equivalent. ​ Noninterest expense for the six months ended June 30, 2026, increased $13.5 million, or 15.4%, compared to the six months ended June 30, 2025, primarily due to a $5.8 million increase in salaries and employee benefits due to additional full-time equivalent employees in 2026 related to the Bancorp Financial acquisition in July 2025, higher annual base salary rates, restricted stock expense, and deferred employee compensation due to market interest rate changes. Also contributing to the increase was a $1.5 million increase in occupancy, furniture and equipment, a $1.6 million increase in computer and data processing, a $351,000 increase in advertising and marketing expense, a $3.2 million increase in consumer credit expense, and a $2.0 million increase in other expense, which were all primarily due to the effect Bancorp Financial acquisition and the corresponding acquisition costs and growth in expenses. Partially offsetting the increases year over year include a $2.0 million decrease in other real estate owned expense, net, as a majority of OREO properties have been sold since the second quarter of 2025, resulting in a reduction of expenses. ​ Efficiency Ratio ​ The efficiency ratio presented above and reconciled below measures how much it costs an institution to generate one dollar of revenue. We utilize this measure in evaluating employee performance incentives as well as in comparison against peer performance, to set and assess operational standards. The following table provides a reconciliation of the non-GAAP efficiency ratio to the most comparable GAAP equivalent. ​ ​ 56 Table of Contents ​ Reconciliation of Adjusted Efficiency Ratio Non-GAAP Financial Measures ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GAAP ​ Non-GAAP ​ ​ ​ ​ Three Months Ended ​ ​ Three Months Ended ​ ​ ​ June 30, ​ March 31, ​ June 30, ​ June 30, ​ March 31, ​ June 30, ​ ​ ​ 2026 ​ 2026 ​ 2025 ​ 2026 ​ 2026 ​ 2025 ​ Efficiency Ratio / Adjusted Efficiency Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest expense ​ $ 51,252 ​ $ 50,210 ​ $ 43,419 ​ $ 51,252 ​ $ 50,210 ​ $ 43,419 ​ Less amortization of core deposit ​ ​ 1,167 ​ ​ 1,176 ​ ​ 1,022 ​ ​ 1,167 ​ ​ 1,176 ​ ​ 1,022 ​ Less other real estate expense, net ​ ​ 52 ​ ​ (186) ​ ​ 35 ​ ​ 52 ​ ​ (186) ​ ​ 35 ​ Less acquisition related costs, net of losses on branch sales ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ 526 ​ ​ 349 ​ ​ 810 ​ Noninterest expense less adjustments ​ $ 50,033 ​ $ 49,220 ​ $ 42,362 ​ $ 49,507 ​ $ 48,871 ​ $ 41,552 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ $ 83,329 ​ $ 81,144 ​ $ 64,234 ​ $ 83,329 ​ $ 81,144 ​ $ 64,234 ​ Taxable-equivalent adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ 14 ​ ​ 13 ​ ​ 9 ​ Securities ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ 301 ​ ​ 307 ​ ​ 327 ​ Net interest income including adjustments ​ ​ 83,329 ​ ​ 81,144 ​ ​ 64,234 ​ ​ 83,644 ​ ​ 81,464 ​ ​ 64,570 ​ Noninterest income ​ ​ 13,261 ​ ​ 12,630 ​ ​ 10,898 ​ ​ 13,261 ​ ​ 12,630 ​ ​ 10,898 ​ Less securities gains ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ Less MSRs mark to market losses ​ ​ (152) ​ ​ (152) ​ ​ (531) ​ ​ (152) ​ ​ (152) ​ ​ (531) ​ Change in cash surrender value of BOLI ​ ​ N/A ​ ​ N/A ​ ​ N/A ​ ​ 390 ​ ​ 288 ​ ​ 184 ​ Noninterest income including adjustments ​ ​ 13,413 ​ ​ 12,782 ​ ​ 11,429 ​ ​ 13,803 ​ ​ 13,070 ​ ​ 11,613 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income including adjustments plus noninterest income including adjustments ​ $ 96,742 ​ $ 93,926 ​ $ 75,663 ​ $ 97,447 ​ $ 94,534 ​ $ 76,183 ​ Efficiency ratio / Adjusted efficiency ratio ​ ​ 51.72 % ​ 52.40 % ​ 55.99 % ​ 50.80 % ​ 51.70 % ​ 54.54 % ​ N/A - not applicable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GAAP ​ Non-GAAP ​ ​ ​ Six Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ June 30, ​ June 30, ​ ​ ​ 2026 ​ 2025 ​ ​ 2026 ​ 2025 ​ Efficiency Ratio / Adjusted Efficiency Ratio ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest expense ​ $ 101,462 ​ $ 87,924 ​ ​ $ 101,462 ​ $ 87,924 ​ Less amortization of core deposit intangible ​ ​ 2,343 ​ ​ 2,059 ​ ​ ​ 2,343 ​ ​ 2,059 ​ Less other real estate expense, net ​ ​ (134) ​ ​ 1,908 ​ ​ ​ (134) ​ ​ 1,908 ​ Less acquisition related costs, net of losses on branch sales ​ ​ N/A ​ ​ N/A ​ ​ ​ 875 ​ ​ 1,264 ​ Noninterest expense less adjustments ​ $ 99,253 ​ $ 83,957 ​ ​ $ 98,378 ​ $ 82,693 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income ​ $ 164,473 ​ $ 127,138 ​ ​ $ 164,473 ​ $ 127,138 ​ Taxable-equivalent adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans ​ ​ N/A ​ ​ N/A ​ ​ ​ 27 ​ ​ 18 ​ Securities ​ ​ N/A ​ ​ N/A ​ ​ ​ 608 ​ ​ 662 ​ Net interest income including adjustments ​ ​ 164,473 ​ ​ 127,138 ​ ​ ​ 165,108 ​ ​ 127,818 ​ Noninterest income ​ ​ 25,891 ​ ​ 21,099 ​ ​ ​ 25,891 ​ ​ 21,099 ​ Less MSRs mark to market losses ​ ​ (304) ​ ​ (1,101) ​ ​ ​ (304) ​ ​ (1,101) ​ Taxable-equivalent adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in cash surrender value of BOLI ​ ​ N/A ​ ​ N/A ​ ​ ​ 678 ​ ​ 316 ​ Noninterest income including adjustments ​ ​ 26,195 ​ ​ 22,200 ​ ​ ​ 26,873 ​ ​ 22,516 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest income including adjustments plus noninterest income including adjustments ​ $ 190,668 ​ $ 149,338 ​ ​ $ 191,981 ​ $ 150,334 ​ Efficiency ratio / Adjusted efficiency ratio ​ ​ 52.06 % ​ 56.22 % ​ ​ 51.24 % ​ 55.01 % ​ N/A - not applicable ​ 57 Table of Contents ​ ​ Income Taxes ​ We recorded income tax expense of $9.7 million for the second quarter of 2026 on $37.8 million of pretax income, compared to income tax expense of $8.5 million on $34.1 million of pretax income in the first quarter of 2026, and income tax expense of $7.4 million on $29.2 million of pretax income in the second quarter of 2025. Our effective tax rate was 25.5% in the second quarter of 2026, 24.9% for the first quarter of 2026, and 25.3% for the second quarter of 2025. ​ We recorded income tax expense of $18.1 million for the six months ended June 30, 2026, on $71.9 million of pretax income, compared to income tax expense of $13.8 million on $55.4 million of pretax income for the six months ended June 30, 2025. Our effective tax rate was 25.2% for the six months ended June 30, 2026, compared to 24.8% for the like 2025 period. ​ Income tax expense reflected all relevant statutory tax rates and GAAP accounting. There were no significant changes in our ability to utilize our deferred tax assets during the quarter ended June 30, 2026. We had no valuation reserve on the deferred tax assets as of June 30, 2026. ​ Financial Condition ​ Total assets decreased $32.4 million to $6.87 billion at June 30, 2026, from $6.90 billion at December 31, 2025, due primarily to the decrease of $49.8 million in securities available-for-sale and a decrease of $6.3 million in total loans. We continue to actively assess potential investment opportunities to utilize our excess liquidity. Total deposits were $5.44 billion at June 30, 2026, a decrease of $151.4 million from December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 Securities ​ As of ​ Percent Change From ​ ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2025 ​ ​ ​ 2025 ​ ​ ​ 2025 Securities available-for-sale, at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasuries ​ $ 144,387 ​ $ 165,860 ​ $ 190,446 ​ (12.9) ​ (24.2) U.S. government agencies ​ ​ 68,404 ​ ​ 29,176 ​ ​ 38,141 ​ 134.5 ​ 79.3 U.S. government agencies mortgage-backed ​ ​ 81,236 ​ ​ 88,780 ​ ​ 96,083 ​ (8.5) ​ (15.5) States and political subdivisions ​ ​ 197,945 ​ ​ 206,375 ​ ​ 208,814 ​ (4.1) ​ (5.2) Collateralized mortgage obligations ​ ​ 343,061 ​ ​ 359,305 ​ ​ 395,014 ​ (4.5) ​ (13.2) Asset-backed securities ​ ​ 39,125 ​ ​ 45,816 ​ ​ 48,119 ​ (14.6) ​ (18.7) Collateralized loan obligations ​ ​ 165,856 ​ ​ 194,464 ​ ​ 201,071 ​ (14.7) ​ (17.5) Equity securities ​ ​ 746 ​ ​ 747 ​ ​ - ​ (0.1) ​ N/M Total securities ​ $ 1,040,760 ​ $ 1,090,523 ​ $ 1,177,688 ​ (4.6) ​ (11.6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ N/M – Not meaningful. ​ Securities available-for-sale decreased $49.8 million as of June 30, 2026, compared to December 31, 2025, and decreased $136.9 million compared to June 30, 2025. The decrease in the portfolio during 2026 was driven by paydowns totaling $119.2 million, along with maturities and calls totaling $41.2 million and a $4.6 million increase in unrealized losses on securities available-for-sale. This was partially offset by $116.0 million in purchases. We continue to position the portfolio in higher credit quality, shorter duration securities with an appropriate mix of fixed- and floating-rate exposures. ​ 58 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 Loans As of ​ Percent Change From ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ ​ ​ 2025 Commercial $ 913,527 ​ $ 842,130 ​ $ 718,927 ​ 8.5 ​ 27.1 Leases ​ 537,197 ​ ​ 548,256 ​ ​ 524,513 ​ (2.0) ​ 2.4 Commercial real estate – investor ​ 1,159,168 ​ ​ 1,212,384 ​ ​ 1,118,782 ​ (4.4) ​ 3.6 Commercial real estate – owner occupied ​ 667,645 ​ ​ 706,567 ​ ​ 652,449 ​ (5.5) ​ 2.3 Construction ​ 153,553 ​ ​ 173,630 ​ ​ 251,692 ​ (11.6) ​ (39.0) Residential real estate – investor ​ 65,133 ​ ​ 70,225 ​ ​ 50,976 ​ (7.3) ​ 27.8 Residential real estate – owner occupied ​ 242,768 ​ ​ 230,432 ​ ​ 220,672 ​ 5.4 ​ 10.0 Multifamily ​ 363,352 ​ ​ 339,131 ​ ​ 333,787 ​ 7.1 ​ 8.9 HELOC ​ 239,307 ​ ​ 235,293 ​ ​ 111,265 ​ 1.7 ​ 115.1 Powersport ​ 683,939 ​ ​ 696,959 ​ ​ - ​ (1.9) ​ N/M Other 1 ​ 220,281 ​ ​ 197,124 ​ ​ 15,604 ​ 11.7 ​ N/M Total loans $ 5,245,870 ​ $ 5,252,131 ​ $ 3,998,667 ​ (0.1) ​ 31.2 ​ N/M – Not meaningful. 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. ​ Total loans were $5.25 billion as of June 30, 2026, a decrease of $6.3 million from December 31, 2025. The decrease in total loans in the first six months of 2026, compared to December 31, 2025, was primarily due to paydowns, net of originations, in commercial real estate – investor, commercial real estate – owner occupied, construction, and powersport. Total loans increased $1.25 billion compared to June 30, 2025, which was primarily due to the $1.20 billion portfolio acquired from Bancorp Financial. Excluding the acquisition, the Bank achieved organic loan growth, net of paydowns, of $51.5 million, driven by commercial and other, partially offset by net decreases in construction loans. As required by CECL, the balance (or amortized cost basis) of purchased credit deteriorated loans, or PCD loans (discussed below) is carried on a gross basis, rather than net of the associated credit loss estimate, and the expected credit losses for PCD loans are estimated and separately recognized as part of the allowance for credit losses, or ACL. Refer to Item 1. Note 1. Recent Accounting Pronouncements, for discussion of the Company’s adoption of ASU 2025-08, which will impact how PCD loans are recorded for any future acquisitions. ​ The powersports loan portfolio provides a more balanced loan portfolio overall by broadening the scope of our consumer lending and offering a higher yield in a lower rate environment. The initial credit considerations for powersport loans rely more heavily on FICO scores compared to other loan types in our loan portfolio. During the six months ended June 30, 2026, we originated $192.6 million powersport loans with a weighted average yield of 10.42%. As of June 30, 2026, the weighted average FICO score, at the time of origination, of the entire powersport portfolio is 728. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ June 30, ​ Average ​ 2026 ​ FICO Tier 1 $ 360,399 ​ 777 Tier 2 ​ 130,501 ​ 711 Tier 3 ​ 80,518 ​ 684 Tier 4 ​ 39,420 ​ 659 Tier 5 ​ 73,101 ​ 606 Total Powersport $ 683,939 ​ 728 ​ The following table sets forth the total of powersport by collateral type: ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ % of ​ ​ 2026 ​ Total ​ New $ 522,853 ​ 76.4 % Used ​ 161,086 ​ 23.6 ​ Total Powersport $ 683,939 ​ 100.0 % ​ 59 Table of Contents ​ The quality of our loan portfolio is impacted not only by our credit decisions but also by the economic health of the communities in which we operate. Since we are located in a corridor with significant open space and undeveloped real estate, real estate lending (including commercial real estate, construction, residential, multifamily, and HELOCs) has been and continues to be a sizeable portion of our portfolio. These categories comprised 55.1% of the portfolio as of June 30, 2026, compared to 56.5% of the portfolio as of December 31, 2025. At June 30, 2026, our outstanding commercial real estate loans and undrawn commercial real estate commitments, excluding owner occupied real estate, were equal to 210.2% of our Tier 1 capital plus allowance for credit losses, a decrease from 220.3% at December 31, 2025. We continue to oversee and seek to manage our loan portfolio in accordance with interagency guidance on risk management. ​ Asset Quality Nonperforming loans consist of nonaccrual loans and loans 90 days or greater past due. Nonperforming loans increased by $3.7 million to $56.5 million at June 30, 2026, from $52.8 million at December 31, 2025, and increased by $24.2 million from $32.2 million at June 30, 2025. The increase from December 31, 2025 and June 30, 2025 was mostly driven by non-accrual additions of a few larger commercial relationships in the first quarter of 2026. Purchased credit deteriorated loans (“PCD”) are purchased loans that, as of the date of acquisition, we determined had experienced a more-than-insignificant deterioration in credit quality since origination. PCD loans are included in our nonperforming loan disclosures, if such loans otherwise meet the definition of a nonperforming loan. Total PCD loans are $62.2 million, of which $1.9 million meet the definition of nonperforming, as of June 30, 2026 and $78.6 million, of which $3.4 million meet the definition of nonperforming, as of December 31, 2025. Management continues to carefully monitor loans considered to be in a classified status. Nonperforming loans as a percent of total loans were 1.1% as of June 30, 2026, 1.0% as of December 31, 2025, and 0.8% as of June 30, 2025. The distribution of our nonperforming loans is shown in the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ Nonperforming Loans As of ​ Percent Change From ​ ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ 2025 ​ Commercial $ 17,723 ​ $ 9,761 ​ $ 11,120 ​ 81.6 ​ ​ 59.4 ​ ​ Leases ​ 2,930 ​ ​ 2,899 ​ ​ 1,346 ​ 1.1 ​ ​ 117.7 ​ ​ Commercial real estate – investor ​ 8,741 ​ ​ 11,377 ​ ​ 1,645 ​ (23.2) ​ ​ 431.4 ​ ​ Commercial real estate – owner occupied ​ 16,416 ​ ​ 19,743 ​ ​ 13,610 ​ (16.9) ​ ​ 20.6 ​ ​ Construction ​ 1,838 ​ ​ 737 ​ ​ 344 ​ 149.4 ​ ​ 434.3 ​ ​ Residential real estate – investor ​ 662 ​ ​ 681 ​ ​ 704 ​ (2.8) ​ ​ (6.0) ​ ​ Residential real estate – owner occupied ​ 2,293 ​ ​ 1,852 ​ ​ 1,515 ​ 23.8 ​ ​ 51.4 ​ ​ Multifamily ​ 1,197 ​ ​ 1,494 ​ ​ 1,099 ​ (19.9) ​ ​ 8.9 ​ ​ HELOC ​ 2,054 ​ ​ 1,222 ​ ​ 860 ​ 68.1 ​ ​ 138.8 ​ ​ Powersport ​ 2,249 ​ ​ 2,778 ​ ​ - ​ (19.0) ​ ​ N/M ​ ​ Other 1 ​ 380 ​ ​ 287 ​ ​ 4 ​ 32.4 ​ ​ N/M ​ ​ Total nonperforming loans $ 56,483 ​ $ 52,831 ​ $ 32,247 ​ 6.9 ​ ​ 75.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ N/M – Not meaningful. ​ 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. ​ ​ 60 Table of Contents ​ The components of our nonperforming assets are shown in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 Nonperforming Assets ​ As of ​ Percent Change From ​ ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ 2025 Nonaccrual loans ​ $ 53,747 ​ $ 47,952 ​ $ 31,902 ​ 12.1 ​ 68.5 Loans past due 90 days or more and still accruing interest ​ 2,736 ​ 4,879 ​ 345 ​ (43.9) ​ 693.0 Total nonperforming loans ​ 56,483 ​ 52,831 ​ 32,247 ​ 6.9 ​ 75.2 Other real estate owned ​ 622 ​ 1,427 ​ 6,486 ​ (56.4) ​ (90.4) Repossessed assets 1 ​ 819 ​ 1,363 ​ 234 ​ (39.9) ​ 250.0 Total nonperforming assets ​ $ 57,924 ​ $ 55,621 ​ $ 38,967 ​ 4.1 ​ 48.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30-89 days past due loans and still accruing interest ​ $ 22,499 ​ $ 52,169 ​ $ 14,652 ​ ​ ​ ​ Nonaccrual loans to total loans ​ ​ 1.0 % ​ 0.9 % ​ 0.8 % ​ ​ ​ Nonperforming loans to total loans ​ ​ 1.1 % ​ 1.0 % ​ 0.8 % ​ ​ ​ Nonperforming assets to total loans plus OREO and repossessed assets ​ ​ 1.1 % ​ 1.1 % ​ 1.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ​ $ 70,380 ​ $ 72,301 ​ $ 42,990 ​ ​ ​ ​ Allowance for credit losses to total loans ​ ​ 1.3 % ​ 1.4 % ​ 1.1 % ​ ​ ​ Allowance for credit losses to nonaccrual loans ​ ​ 130.9 % ​ 150.8 % ​ 134.8 % ​ ​ ​ ​ 1 Repossessed assets are reported within other assets. ​ Loan charge-offs, net of recoveries, for the second quarter of 2026 as compared to the prior linked quarter and year over year quarter are shown in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loan Charge–offs, Net of Recoveries Three Months Ended ​ June 30, ​ % of ​ March 31, ​ % of ​ June 30, ​ % of ​ 2026 ​ Total1 ​ 2026 ​ Total1 ​ 2025 ​ Total1 Commercial $ 2,983 ​ 32.3 ​ $ 1,298 ​ 13.3 ​ $ 1,093 ​ 139.2 Leases ​ 344 ​ 3.7 ​ ​ 197 ​ 2.0 ​ ​ (3) ​ (0.4) Commercial real estate – investor ​ 2,804 ​ 30.3 ​ ​ 3,919 ​ 40.1 ​ ​ (14) ​ (1.8) Commercial real estate – owner occupied ​ (1) ​ - ​ ​ (5) ​ (0.1) ​ ​ (1) ​ (0.1) Construction ​ - ​ - ​ ​ - ​ - ​ ​ (337) ​ (42.9) Residential real estate – investor ​ (1) ​ - ​ ​ (2) ​ - ​ ​ (2) ​ (0.3) Residential real estate – owner occupied ​ (21) ​ (0.2) ​ ​ (7) ​ (0.1) ​ ​ (8) ​ (1.0) Multifamily ​ - ​ - ​ ​ - ​ - ​ ​ - ​ - HELOC ​ (14) ​ (0.2) ​ ​ (6) ​ (0.1) ​ ​ (10) ​ (1.3) Powersport ​ 2,826 ​ 30.6 ​ ​ 3,894 ​ 39.9 ​ ​ - ​ - Other 2 ​ 328 ​ 3.5 ​ ​ 488 ​ 5.0 ​ ​ 67 ​ 8.6 Net charge–offs (recoveries) $ 9,248 ​ 100.0 ​ $ 9,776 ​ 100.0 ​ $ 785 ​ 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 Represents the percentage of net charge-offs attributable to each category of loans. 2 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. ​ Net charge offs, reported in the above table, reflect continuing management attention to credit quality and remediation efforts. There was a decrease of $622,000 in gross charge offs, as compared to the linked quarter, primarily due to lower powersport and commercial real estate – investor charge offs, offset by increased commercial charge offs. Powersport loans are measured for asset quality at origination based on FICO scores, then based on past due status through the life of the loan, and charge-off occurs once a loan is past due 120 days. We have continued our conservative loan valuations and aggressive recovery efforts on prior charge-offs. ​ ​ 61 Table of Contents ​ Classified loans include nonaccrual loans, accruing substandard, and doubtful loans. Classified assets include classified loans, OREO, and repossessed assets. Loans classified as substandard are inadequately protected by either the current net worth and ability to meet payment obligations of the obligor, or by the collateral pledged to secure the loan, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and carry the distinct possibility that we will sustain some loss if the deficiencies remain uncorrected. Loans classified as doubtful have all the weaknesses inherent as those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. ​ The following table shows classified assets by classification for the following periods: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 Classified Assets As of ​ Percent Change From ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ 2025 Commercial $ 39,646 ​ $ 51,587 ​ $ 23,354 ​ (23.1) ​ ​ 69.8 ​ Leases ​ 2,930 ​ ​ 2,428 ​ ​ 1,346 ​ 20.7 ​ ​ 117.7 ​ Commercial real estate – investor ​ 11,262 ​ ​ 14,245 ​ ​ 14,752 ​ (20.9) ​ ​ (23.7) ​ Commercial real estate – owner occupied ​ 58,582 ​ ​ 64,081 ​ ​ 51,335 ​ (8.6) ​ ​ 14.1 ​ Construction ​ 12,976 ​ ​ 11,421 ​ ​ 1,624 ​ 13.6 ​ ​ 699.0 ​ Residential real estate – investor ​ 662 ​ ​ 1,142 ​ ​ 1,201 ​ (42.0) ​ ​ (44.9) ​ Residential real estate – owner occupied ​ 2,076 ​ ​ 1,897 ​ ​ 1,707 ​ 9.4 ​ ​ 21.6 ​ Multifamily ​ 1,197 ​ ​ 1,494 ​ ​ 1,099 ​ (19.9) ​ ​ 8.9 ​ HELOC ​ 2,250 ​ ​ 1,466 ​ ​ 1,180 ​ 53.5 ​ ​ 90.7 ​ Powersport ​ 198 ​ ​ 68 ​ ​ - ​ 191.2 ​ ​ N/M ​ Other ​ 318 ​ ​ 270 ​ ​ 22 ​ 17.8 ​ ​ N/M ​ Total classified loans ​ 132,097 ​ ​ 150,099 ​ ​ 97,620 ​ (12.0) ​ ​ 35.3 ​ Other real estate owned ​ 622 ​ ​ 1,427 ​ ​ 6,486 ​ (56.4) ​ ​ (90.4) ​ Repossessed assets 1 ​ 819 ​ ​ 1,363 ​ ​ 234 ​ (39.9) ​ ​ 250.0 ​ Total classified assets $ 133,538 ​ $ 152,889 ​ $ 104,340 ​ (12.7) ​ ​ 28.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ N/M - Not meaningful 1 Repossessed assets are reported within other assets. ​ Total classified loans decreased $18.0 million as of June 30, 2026, from December 31, 2025, but increased $34.5 million compared to June 30, 2025. The decrease in classified loans since December 31, 2025, is due to outflows from classified loans of $39.6 million, offset by additions of $21.6 million. Outflows consisted of $13.2 million of loans paid off, $16.1 million of classified loans upgraded, $5.8 million of principal reductions through payments and partial charge offs, $4.3 million of loans charged off, and $235,000 of loans transferred into OREO. Classified assets decreased as of June 30, 2026, compared to December 31, 2025, due to the decreases to classified loans and a total decrease of $1.3 million related to OREO and repossessed assets. The $29.2 million increase in classified assets as of June 30, 2026, compared to June 30, 2025, is primarily due to the classified loan increase of $34.5 million, noted above, and a $585,000 increase in repossessed assets, partially offset by a $5.9 million reduction to OREO. Classified loans since June 30, 2025 had additions of $126.9 million and were offset by outflows of $92.4 million which consisted of $51.8 million of loans paid off, $25.0 million of classified loans upgraded, $5.3 million of loans charged off, $9.1 million of net principal reductions and partial charge offs, $235,000 transferred to OREO, and $1.0 million repossessed. Management monitors a ratio of classified assets to the sum of Bank Tier 1 capital and the ACL on loans as another measure of overall change in loan related asset quality, which is referred to as the “classified assets ratio.” The classified assets ratio was 15.14% for the period ended June 30, 2026, compared to 17.82% as of December 31, 2025, and 14.91% as of June 30, 2025. ​ Allowance for Credit Losses on Loans ​ The provision for credit losses, which includes a provision for losses on unfunded commitments, is a charge to earnings to maintain the allowance for credit losses (“ACL”) at a level consistent with management’s assessment of expected losses in the loan portfolio at the balance sheet date. ​ ​ 62 Table of Contents ​ At June 30, 2026, our ACL on loans totaled $70.4 million, and our ACL on unfunded commitments, included in other liabilities, totaled $2.0 million. In the second quarter of 2026, we recorded a provision expense on loans of $7.5 million driven by increased charge-offs and the downgrade of one commercial relationship. Further, we recorded a $2,500 provision release on unfunded commitments, primarily due to an adjustment of historical benchmark assumptions, such as funding rates and the period used to forecast those rates, within the ACL calculation. These adjustments resulted in a $7.5 million net expense to the provision for credit losses for the second quarter of 2026. Management estimates the amount of provision required on a quarterly basis and records the appropriate provision expense, or release of expense, to maintain an adequate reserve for all potential and estimated credit losses on loans, leases and unfunded commitments. The ACL on loans totaled $70.4 million as of June 30, 2026, $72.3 million as of December 31, 2025, and $43.0 million as of June 30, 2025. Our ACL on loans to total loans was 1.3% as of June 30, 2026, 1.4% as of December 31, 2025, and 1.1% as of June 30, 2025. See Item 7 – Critical Accounting Estimates in the Management Discussion and Analysis in our 2025 Annual Report in Form 10-K for discussion of our ACL methodology on loans. Allocations of the ACL may be made for specific loans, but the entire allowance is available for any loan that, in our judgment, should be charged-off. Below is a reconciliation of the activity in the allowance for credit losses on loans for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Six Months Ended ​ ​ June 30, ​ March 31, ​ June 30, ​ June 30, ​ June 30, ​ ​ 2026 ​ 2026 ​ 2025 ​ 2026 ​ 2025 ​ Allowance at beginning of period $ 72,126 ​ ​ $ 72,301 ​ ​ $ 41,551 ​ ​ $ 72,301 ​ ​ $ 43,619 ​ ​ Charge–offs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ 3,002 ​ ​ ​ 1,328 ​ ​ ​ 1,125 ​ ​ ​ 4,330 ​ ​ ​ 4,571 ​ ​ Leases ​ 346 ​ ​ ​ 312 ​ ​ ​ - ​ ​ ​ 658 ​ ​ ​ 107 ​ ​ Commercial real estate – investor ​ 2,819 ​ ​ ​ 3,933 ​ ​ ​ - ​ ​ ​ 6,752 ​ ​ ​ - ​ ​ Commercial real estate – owner occupied ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ 47 ​ ​ Construction ​ - ​ ​ ​ - ​ ​ ​ 13 ​ ​ ​ - ​ ​ ​ 834 ​ ​ Residential real estate – investor ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ Residential real estate – owner occupied ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ Multifamily ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ HELOC ​ - ​ ​ ​ 2 ​ ​ ​ - ​ ​ ​ 2 ​ ​ ​ - ​ ​ Powersport ​ 3,592 ​ ​ ​ 4,661 ​ ​ ​ - ​ ​ ​ 8,253 ​ ​ ​ - ​ ​ Other 1 ​ 412 ​ ​ ​ 557 ​ ​ ​ 94 ​ ​ ​ 969 ​ ​ ​ 202 ​ ​ Total charge–offs ​ 10,171 ​ ​ ​ 10,793 ​ ​ ​ 1,232 ​ ​ ​ 20,964 ​ ​ ​ 5,761 ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ 19 ​ ​ ​ 30 ​ ​ ​ 32 ​ ​ ​ 49 ​ ​ ​ 64 ​ ​ Leases ​ 2 ​ ​ ​ 115 ​ ​ ​ 3 ​ ​ ​ 117 ​ ​ ​ 17 ​ ​ Commercial real estate – investor ​ 15 ​ ​ ​ 14 ​ ​ ​ 14 ​ ​ ​ 29 ​ ​ ​ 28 ​ ​ Commercial real estate – owner occupied ​ 1 ​ ​ ​ 5 ​ ​ ​ 1 ​ ​ ​ 6 ​ ​ ​ 9 ​ ​ Construction ​ - ​ ​ ​ - ​ ​ ​ 350 ​ ​ ​ - ​ ​ ​ 350 ​ ​ Residential real estate – investor ​ 1 ​ ​ ​ 2 ​ ​ ​ 2 ​ ​ ​ 3 ​ ​ ​ 4 ​ ​ Residential real estate – owner occupied ​ 21 ​ ​ ​ 7 ​ ​ ​ 8 ​ ​ ​ 28 ​ ​ ​ 38 ​ ​ Multifamily ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ ​ - ​ ​ HELOC ​ 14 ​ ​ ​ 8 ​ ​ ​ 10 ​ ​ ​ 22 ​ ​ ​ 22 ​ ​ Powersport ​ 766 ​ ​ ​ 767 ​ ​ ​ - ​ ​ ​ 1,533 ​ ​ ​ - ​ ​ Other 1 ​ 84 ​ ​ ​ 69 ​ ​ ​ 27 ​ ​ ​ 153 ​ ​ ​ 91 ​ ​ Total recoveries ​ 923 ​ ​ ​ 1,017 ​ ​ ​ 447 ​ ​ ​ 1,940 ​ ​ ​ 623 ​ ​ Net charge-offs ​ 9,248 ​ ​ ​ 9,776 ​ ​ ​ 785 ​ ​ ​ 19,024 ​ ​ ​ 5,138 ​ ​ Provision for credit losses on loans 2 ​ 7,502 ​ ​ ​ 9,601 ​ ​ ​ 2,224 ​ ​ ​ 17,103 ​ ​ ​ 4,509 ​ ​ Allowance at end of period $ 70,380 ​ ​ $ 72,126 ​ ​ $ 42,990 ​ ​ $ 70,380 ​ ​ $ 42,990 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average total loans (exclusive of loans held–for–sale) $ 5,219,813 ​ ​ $ 5,205,721 ​ ​ $ 3,958,330 ​ ​ $ 5,212,806 ​ ​ $ 3,958,032 ​ ​ Annualized net charge–offs to average loans ​ 0.71 % ​ ​ 0.76 % ​ ​ 0.08 % ​ ​ 0.74 % ​ ​ 0.26 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 The “Other” classification includes consumer loans, such as collector cars, manufactured homes, and solar loans, as well as overdrafts. 2 Amount does not include the provision for unfunded commitment liability. ​ 63 Table of Contents The coverage ratio of the ACL on loans to nonperforming loans was 124.6% as of June 30, 2026, which was a decrease from the coverage ratio of 136.9% as of December 31, 2025, and a decrease from 133.3% as of June 30, 2025. Annualized net charge-offs to average loans decreased slightly in the current quarter at 0.71% for the quarter ended June 30, 2026, compared to 0.76% for the quarters ended March 31, 2026 and was an increase from the prior year quarter of 0.08% as of June 30, 2025. ​ In management’s judgment, an adequate ACL has been established to encompass the current lifetime expected credit losses at June 30, 2026, as well as general changes in lending policy, procedures and staffing, and other external factors. However, there can be no assurance that actual losses will not exceed the estimated amounts in the future, based on unforeseen economic events, changes in business climates and the condition of collateral at the time of default and repossession. Continued volatility in the economic environment stemming from the impacts of and response to inflation, tariffs, potential recession, and the war in Ukraine and the war in Iran, and the associated effects on our customers, or other factors, such as changes in business climates and the condition of collateral at the time of default or repossession, may revise our current expectations of future credit losses in future reporting periods. ​ Other Real Estate Owned ​ As of June 30, 2026, OREO totaled $622,000, reflecting a decrease of $805,000 from $1.4 million at December 31, 2025, and a decrease of $5.9 million from $6.5 million at June 30, 2025. There were no transfers or sales during the three months ended June 30, 2026. There was a valuation adjustment of $10,000 related to an updated annual appraisal. There was no valuation adjustment in the fourth quarter of 2025 and we recorded a valuation adjustment of $157,000 in the second quarter of 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 OREO Three Months Ended ​ Percent Change From ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ 2025 Balance at beginning of period $ 632 ​ $ 6,416 ​ $ 2,878 ​ (90.1) ​ ​ (78.0) ​ Property additions, net of transfer adjustments ​ - ​ ​ - ​ ​ 4,989 ​ - ​ ​ (100.0) ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds from property disposals, net of participation purchase and of gains/losses ​ - ​ ​ 4,989 ​ ​ 1,224 ​ (100.0) ​ ​ (100.0) ​ Period valuation adjustments ​ 10 ​ ​ - ​ ​ 157 ​ N/M ​ ​ (93.6) ​ Balance at end of period $ 622 ​ $ 1,427 ​ $ 6,486 ​ (56.4) ​ ​ (90.4) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ N/M – Not meaningful. ​ In management’s judgment, the property valuation allowance as established presents OREO at current estimates of fair value less estimated costs to sell; however, there can be no assurance that additional losses will not be incurred on disposals or upon updates to valuations in the future. These valuations are reversed when the property is sold. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ OREO Properties by Type ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ December 31, 2025 ​ June 30, 2025 ​ ​ Amount ​ % of Total ​ ​ Amount ​ % of Total ​ ​ Amount ​ % of Total Single family residence $ 622 ​ 100 ​ $ - ​ - ​ $ - ​ - Commercial property ​ - ​ - ​ ​ 1,427 ​ 100 ​ ​ 6,486 ​ 100 Total other real estate owned $ 622 ​ 100 ​ $ 1,427 ​ 100 ​ $ 6,486 ​ 100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 64 Table of Contents Deposits and Borrowings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 Deposits As of ​ Percent Change From ​ June 30, ​ December 31, ​ June 30, ​ December 31, ​ June 30, ​ 2026 ​ 2025 ​ 2025 ​ 2025 ​ ​ ​ 2025 Noninterest bearing demand $ 1,746,755 ​ $ 1,739,117 ​ $ 1,704,083 ​ 0.4 ​ 2.5 Savings ​ 1,106,626 ​ ​ 1,121,888 ​ ​ 929,424 ​ (1.4) ​ 19.1 NOW accounts ​ 718,259 ​ ​ 693,573 ​ ​ 640,607 ​ 3.6 ​ 12.1 Money market accounts ​ 946,647 ​ ​ 930,079 ​ ​ 830,204 ​ 1.8 ​ 14.0 Certificates of deposit of less than $100,000 ​ 409,557 ​ ​ 489,879 ​ ​ 324,571 ​ (16.4) ​ 26.2 Certificates of deposit of $100,000 through $250,000 ​ 342,574 ​ ​ 412,655 ​ ​ 241,774 ​ (17.0) ​ 41.7 Certificates of deposit of more than $250,000 ​ 174,270 ​ ​ 208,878 ​ ​ 127,776 ​ (16.6) ​ 36.4 Total deposits $ 5,444,688 ​ $ 5,596,069 ​ $ 4,798,439 ​ (2.7) ​ 13.5 ​ Total deposits were $5.44 billion at June 30, 2026, which reflects a $151.4 million decrease from total deposits of $5.60 billion at December 31, 2025, but an increase of $646.2 million from total deposits of $4.80 billion at June 30, 2025. The decrease in deposits at June 30, 2026, compared to December 31, 2025, was primarily due to decreases in savings accounts of $15.3 million and time deposits of $185.0 million, primarily due to the roll off of higher rate brokered deposits and other exception-priced time deposits acquired from the Bancorp Financial acquisition. These decreases were partially offset by increases in noninterest bearing deposits of $7.6 million, NOW accounts of $24.7 million and money market accounts of $16.6 million. ​ The increase in deposits at June 30, 2026, compared to June 30, 2025, stemmed primarily from the acquisition of Bancorp Financial, which impacted all deposit types. Total quarterly average deposits increased $638.9 million, or 13.2%, in the year over year period, primarily driven by the acquisition of Bancorp Financial, which included an increase in average time deposits of $272.5 million, savings accounts of $170.5 million, money market accounts of $115.5 million, NOW accounts of $64.1 million, and noninterest bearing deposits of $16.3 million. Included in our quarterly average time deposits for the three months ended June 30, 2026, are $31.2 million of brokered deposits, compared to none for the like period of 2025. Brokered deposits totaling $115.0 million were assumed in the acquisition of Bancorp Financial, and we expect these deposits to run-off by early 2028. Accordingly, as of June 30, 2026, we have $30.3 million brokered deposits remaining. ​ The following table presents estimated insured and uninsured deposits at June 30, 2026, and December 31, 2025, by deposit type, as well as the weighted average rates for each year to date ending period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ ​ December 31, 2025 ​ Total Deposits ​ Insured Deposits ​ Uninsured Deposits ​ Average Rate Paid ​ Total Deposits ​ Insured Deposits ​ Uninsured Deposits ​ Average Rate Paid Noninterest bearing demand $ 1,746,755 ​ $ 1,136,068 ​ $ 610,687 ​ - % ​ $ 1,739,117 ​ $ 1,141,542 ​ $ 597,575 ​ - % Savings ​ 1,106,626 ​ ​ 1,009,785 ​ ​ 96,841 ​ 0.79 ​ ​ ​ 1,121,888 ​ ​ 1,025,941 ​ ​ 95,947 ​ 0.73 ​ NOW accounts ​ 718,259 ​ ​ 484,655 ​ ​ 233,604 ​ 0.49 ​ ​ ​ 693,573 ​ ​ 495,397 ​ ​ 198,176 ​ 0.45 ​ Money market accounts ​ 946,647 ​ ​ 554,712 ​ ​ 391,935 ​ 1.82 ​ ​ ​ 930,079 ​ ​ 548,289 ​ ​ 381,790 ​ 1.90 ​ Time deposits ​ 926,401 ​ ​ 777,683 ​ ​ 148,718 ​ 2.66 ​ ​ ​ 1,111,412 ​ ​ 937,045 ​ ​ 174,367 ​ 2.92 ​ Total $ 5,444,688 ​ $ 3,962,903 ​ $ 1,481,785 ​ 1.02 % ​ $ 5,596,069 ​ $ 4,148,214 ​ $ 1,447,855 ​ 1.06 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collateralized public funds $ 244,023 ​ $ 16,699 ​ $ 227,324 ​ ​ ​ ​ $ 219,939 ​ $ 15,832 ​ $ 204,107 ​ ​ ​ ​ Total deposits decreased 2.7% to $5.44 billion at June 30, 2026 from $5.60 billion at December 31, 2025, primarily reflecting lower time deposit balances. The average rate paid on deposits decreased to 1.02% from 1.06%, driven by the repricing of maturing time deposits and a favorable shift in deposit mix. Noninterest-bearing deposits represented 32% of total deposits at June 30, 2026 compared to 31% at December 31, 2025, supporting a stable funding profile. ​ In addition to deposits, we used other liquidity sources for our funding needs in all periods presented, such as repurchase agreements and other short-term borrowings with the FHLBC. Our borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC, and total borrowings are generally limited to the lower of 35% of total assets or the book value of eligible pledged assets after application of FHLBC margins and collateral valuation adjustments. Securities sold under repurchase agreements totaled $23.2 million at June 30, 2026, a $528,000, or 2.2% decrease from $23.8 million at December 31, 2025, and a decrease of $24.0 million, or 50.8%, from June 30, 2025. There were outstanding short-term FHLBC borrowings of $375.0 million as of June 30, 2026, compared to $215.0 million as of December 31, 2025, and no short-term FHLBC borrowings outstanding as of June 30, 2025. ​ 65 Table of Contents ​ We are also indebted on $25.8 million of junior subordinated debentures, net of deferred issuance costs, as of June 30, 2026, which are related to the trust preferred securities issued by its statutory trust subsidiary, Old Second Capital Trust II (“Trust II”). The Trust II issuance converted from fixed to floating rate at three month LIBOR, which is now three month Term SOFR, plus 150 basis points beginning June 15, 2017. Upon conversion to a floating rate, we initiated a cash flow hedge which resulted in net year to date interest rate paid on this debt of 4.58% as of June 30, 2026, as compared to 6.77%, which was the rate paid during the period prior to the June 15, 2017, rate reset. ​ In the second quarter of 2021, we entered into Subordinated Note Purchase Agreements with certain qualified institutional buyers pursuant to which we issued $60.0 million in aggregate principal amount of our 3.50% Fixed-to-Floating Rate Subordinated Notes due April 15, 2031 (the “Notes”). We sold the Notes to eligible purchasers in a private offering, and the proceeds of this issuance were used for general corporate purposes. The Notes bear interest at a fixed annual rate of 3.50% through April 14, 2026, payable semi-annually in arrears. As of April 15, 2026, forward, the interest rate on the Notes will generally reset quarterly to a rate equal to three-month Term SOFR (as defined by the Note) plus 273 basis points, payable quarterly in arrears. The Notes have a stated maturity of April 15, 2031, and are redeemable, in whole or in part, on April 15, 2026, or any interest payment date thereafter, and at any time upon the occurrence of certain events. On April 15, 2026, we redeemed $30.0 million aggregate principal amount of the Notes. As of June 30, 2026, we had $29.8 million of subordinated debentures outstanding, net of deferred issuance costs. See Note 7. Borrowings for additional information. ​ Capital ​ As of June 30, 2026, total stockholders’ equity was $902.8 million, an increase of $6.0 million from $896.8 million as of December 31, 2025. This increase was primarily attributable to net income of $53.8 million earned during the first six months of 2026, partially offset by $7.3 million of dividends paid to our common stockholders. The increase in total stockholders’ equity was further offset by a $35.5 million increase in treasury stock. During the first six months of 2026, we repurchased 1,908,042 shares for $38.8 million under our stock repurchase program and withheld 69,621 shares with a value of $1.4 million to satisfy tax withholding obligations related to restricted stock unit vestings. These transactions were partially offset by the issuance of 159,771 shares related to restricted stock unit vestings, with a value of $2.9 million, and 87,631 shares related to performance-based restricted stock unit vestings, with a value of $1.8 million. Total stockholders’ equity also decreased as a result of a $3.1 million increase in unrealized net losses on available-for-sale securities and swaps, recorded within accumulated other comprehensive loss, driven by changes in market interest rates during the period. Total stockholders’ equity at June 30, 2026 increased $184.2 million compared to June 30, 2025, primarily due to the Bancorp Financial acquisition and the accumulation of earnings since June 30, 2025. ​ The following table shows the regulatory capital ratios and the current well capitalized regulatory requirements for the Company and the Bank as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Minimum Capital ​ Well Capitalized ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adequacy with ​ Under Prompt ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Conservation ​ ​ Corrective Action ​ June 30, ​ December 31, ​ June 30, ​ ​ Buffer, if applicable1 ​ Provisions2 ​ 2026 ​ 2025 ​ 2025 The Company ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common equity tier 1 capital ratio ​ 7.00 % ​ N/A ​ ​ 13.28 % ​ 12.99 % ​ 13.77 % Total risk-based capital ratio ​ 10.50 ​ ​ N/A ​ ​ 15.26 ​ ​ 15.46 ​ ​ 16.55 ​ Tier 1 risk-based capital ratio ​ 8.50 ​ ​ N/A ​ ​ 13.70 ​ ​ 13.41 ​ ​ 14.31 ​ Tier 1 leverage ratio ​ 4.00 ​ ​ N/A ​ ​ 12.05 ​ ​ 11.70 ​ ​ 11.83 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Bank ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common equity tier 1 capital ratio ​ 7.00 % ​ 6.50 % ​ 13.72 % ​ 13.17 % ​ 14.02 % Total risk-based capital ratio ​ 10.50 ​ ​ 10.00 ​ ​ 14.77 ​ ​ 14.22 ​ ​ 14.99 ​ Tier 1 risk-based capital ratio ​ 8.50 ​ ​ 8.00 ​ ​ 13.72 ​ ​ 13.17 ​ ​ 14.02 ​ Tier 1 leverage ratio ​ 4.00 ​ ​ 5.00 ​ ​ 12.05 ​ ​ 11.49 ​ ​ 11.59 ​ ​ 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 2 The prompt corrective action provisions are only applicable at the Bank level. ​ N/A - Not applicable ​ ​ 66 Table of Contents ​ As of June 30, 2026, the Bank exceeded the minimum capital ratios to be deemed “well capitalized” and met the capital conservation buffer requirements. In addition to the above regulatory ratios, our GAAP common equity to total assets ratio, which is used as a performance measure for capital analysis and peer comparisons, increased from 12.99% at December 31, 2025, to 13.14% at June 30, 2026. Our GAAP tangible common equity to tangible assets ratio was 11.19% at June 30, 2026, compared to 11.02% as of December 31, 2025. ​ ​ Liquidity ​ Liquidity is our ability to fund operations, to meet depositor withdrawals, to provide for customers’ credit needs, and to meet maturing obligations and existing commitments. Our liquidity principally depends on our cash flows from operating activities, investment in and maturity of assets, changes in balances of deposits and borrowings, and our ability to borrow funds. Through the second quarter of 2026, we experienced an increase in loans, but a decrease in deposits. We managed the change in our funding through an increase in average borrowings from the FHLBC through June 30, 2026, compared to the prior year end. We seek to ensure our funding needs are met by maintaining a level of liquidity through asset and liability management. We monitor our borrowing capacity at the FHLBC as part of our liquidity management process as supervised by our Asset and Liability Committee (“ALCO”) and reviewed by our Board of Directors. In addition, our senior management team monitors cash balances daily to ensure we have adequate liquidity to meet our operational and financing needs. As of June 30, 2026, our cash on hand liquidity totaled $143.3 million, an increase of $19.3 million over cash balances held as of December 31, 2025. ​ Net cash inflows from operating activities were $65.5 million during the first six months of 2026, compared with net cash inflows of $42.1 million in the same period of 2025. Funds used to originate loans held-for-sale, net of proceeds from sales of loans held-for-sale, resulted in inflows for the first six months of 2026, but were a source of outflows in the like period of 2025. Interest paid, net of interest received, combined with changes in other assets and liabilities were a source of outflows for the six months ended June 30, 2026 and 2025. The management of investing and financing activities, as well as market conditions, determines the level and the stability of net interest cash flows. Management’s policy is to mitigate the impact of changes in market interest rates to the extent possible, as part of the balance sheet management process. ​ Net cash inflows from investing activities were $23.1 million in the six months ended June 30, 2026, compared to net cash outflows of $13.4 million in the same period in 2025. In the first six months of 2026, securities transactions accounted for net inflows of $44.3 million, and the principal change on loans accounted for net outflows of $12.8 million. In the first six months of 2025, securities transactions accounted for net outflows of $3.0 million, and principal on loans funded, net of paydowns, accounted for net outflows of $27.3 million. ​ Net cash outflows from financing activities in the six months ended June 30, 2026, were $69.3 million, compared with net cash inflows of $13.8 million in the six months ended June 30, 2025. Net deposit outflows in the first six months of 2026 were $151.3 million compared to net deposit inflows of $30.1 million in the first six months of 2025. Other short-term borrowings had $160.0 million of net cash inflows in the first six months of 2026, compared to net cash outflows of $20.0 million for other short-term borrowings in the first six months of 2025. Changes in securities sold under repurchase agreements accounted for outflows of $528,000 and inflows of $10.6 million for the six months ended June 30, 2026 and 2025, respectively. A partial redemption of subordinated debentures resulted in $30.0 million of net cash outflows for the six months ended June 30, 2026. Dividends paid on our common stock totaled $7.3 million for the six months ended June 30, 2026, and $5.4 million for the six months ended June 30, 2025. The purchase of treasury stock in the first six months of 2026 due to shares acquired with equity award vestings as well as share repurchases resulted in outflows of $40.2 million, compared to cash outflows of $1.5 million in the first six months of 2025 related to shares acquired from equity award vestings. ​ Cash and cash equivalents for the six months ended June 30, 2026 totaled $143.3 million, as compared to $124.0 million as of December 31, 2025, and $141.8 million as of June 30, 2025. The increase in cash and cash equivalents for the six months ended June 30, 2026, as compared to the prior year end, was primarily attributable to the maturities, calls, and paydowns of securities available-for-sale as well as the utilization of short-term borrowings through FHLB advances. In addition to cash and cash equivalents on hand or held as deposits with other financial institutions, we rely on funding sources from customer deposits, cash flows from securities available-for-sale and loans, and a line of credit with the FHLBC to meet potential liquidity needs. These sources of liquidity are immediately available to satisfy any funding requirements due to depositor or borrower demands through the ordinary course of our business. Additional sources of funding available include a $30.0 million undrawn line of credit held by the Company with a third-party financial institution, as well as unpledged securities available-for-sale. ​ ​ ​ ​ 67 Table of Contents