Overview. We strive to remain a leader in meeting the financial service needs of the local community and to provide quality service to the individuals and businesses in the market areas that we have served since 1853. Historically, we have been a community-oriented provider of traditional banking products and services to business organizations and individuals, including products such as residential and commercial real estate loans, commercial and industrial loans, consumer loans, and a variety of deposit products. We meet the needs of our local community through a community-based and service-oriented approach to banking. The Company has adopted a growth-oriented strategy that continues to focus on increasing commercial lending and residential lending. Our strategy also calls for increasing deposit relationships, specifically core deposits, which the Company defines as all deposits except for time deposits, and broadening our product lines and services. We believe that this business strategy is best for our long-term success and viability and complements our existing commitment to high-quality customer service. In connection with our overall growth strategy, we seek to: ● Increase market share and achieve scale to improve the Company’s profitability, efficiency and return value to shareholders; ● Grow the Company’s commercial loan portfolio and related commercial deposits by targeting businesses in our primary market area of Hampden and Hampshire Counties in western Massachusetts and the Capital Region in Connecticut; ● Grow the Company’s residential real estate portfolio to diversify the Company’s loan portfolio and deepen customer relationships; ● Focus on expanding our retail banking deposit franchise and increase the number of households served within our designated market area; ● Invest in people, systems, and technology to grow revenue, improve efficiency and enhance the overall customer experience; ● Grow revenues, increase book value per share and tangible book value per share (a non-GAAP financial measure), pay competitive dividends to shareholders, and utilize the Company’s stock repurchase plan to leverage our capital and enhance franchise value; and ● Consider growth through mergers and acquisitions. We may pursue expansion opportunities in existing or adjacent strategic locations with companies that add complementary products to our existing business and at terms that add value to our existing shareholders. You should read the following financial results for the three months and six months ended June 30, 2026 in the context of this strategy. ● Net income was $3.6 million, or $0.18 per diluted share, for the three months ended June 30, 2026, compared to net income of $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025. For the six months ended June 30, 2026, net income was $8.4 million, or $0.42 per diluted share, compared to $6.9 million, or $0.34 per diluted share, for the six months ended June 30, 2025. ● Net interest income increased $1.7 million, or 9.5%, to $19.3 million, for the three months ended June 30, 2026, from $17.6 million for the three months ended June 30, 2025. The increase in net interest income was due to an increase in interest and dividend income of $1.2 million, or 3.9%, and a decrease in interest expense of $510,000, or 4.3%. During the three months ended June 30, 2026, and the three months ended June 30, 2025, the Company recorded prepayment penalties related to payoffs in the commercial real estate portfolio of $82,000 and $425,000, respectively. Excluding the prepayment penalties, net interest income increased $2.0 million, or 11.7%. The increase in interest and dividend income was primarily due to the increase in average loans of $108.6 million, or 5.2%, and an increase of seven basis points in the average loan yield, without the impact of tax-equivalent adjustments, from the three months ended June 30, 2025 to the three months ended June 30, 2026. 41 ● During the three months ended June 30, 2026, the Company recorded a provision for credit losses of $1.6 million, due to a charge-off of $1.8 million on the participation loan discussed above. During the three months ended June 30, 2025, the Company recorded a reversal of credit losses of $615,000 The reversal of credit losses was a result of a recovery in the amount of $624,000 on charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. CRITICAL ACCOUNTING POLICIES. Our consolidated financial statements are prepared in accordance with GAAP and practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Actual results could differ from those estimates. Critical accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. There have been no material changes to our critical accounting policies during the six months ended June 30, 2026. For additional information on our critical accounting policies, please refer to the information contained in Note 1 of the accompanying unaudited consolidated financial statements and Note 1 of the consolidated financial statements included in our 2025 Annual Report. COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2026 AND DECEMBER 31, 2025 At June 30, 2026, total assets were $2.7 billion, a decrease of $4.2 million, or 0.1%, from December 31, 2025. The decrease in total assets was primarily due to a decrease in investment securities of $12.2 million, or 3.4%, and a decrease in cash and cash equivalents of $2.7 million, or 6.7%, partially offset by an increase in total loans of $9.9 million, or 0.5%. Investment Securities. At June 30, 2026, the investment securities portfolio totaled $353.0 million, or 12.9% of total assets, compared to $365.2 million, or 13.3% of total assets, at December 31, 2025. At June 30, 2026, the Company’s available-for-sale securities portfolio, recorded at fair market value, decreased $5.2 million, or 3.0%, from $175.8 million at December 31, 2025 to $170.6 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $7.1 million, or 3.8%, from $188.8 million at December 31, 2025, to $181.7 million at June 30, 2026. At June 30, 2026, the Company reported net unrealized losses on the available-for-sale securities portfolio of $22.9 million, or 11.8% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $22.4 million, or 11.3% of the amortized cost basis of the available-for-sale securities at December 31, 2025. At June 30, 2026, the Company reported net unrealized losses on the held-to-maturity securities portfolio of $30.5 million, or 16.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $30.3 million, or 16.1% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2025. The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $13.1 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses within the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity. 42 Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2026, and December 31, 2025, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which supports the Bank's objective to provide liquidity. Loans. Total loans increased $9.9 million, or 0.5%, from $2.2 billion, or 79.7% of total assets, at December 31, 2025, to $2.2 billion, or 80.2% of total assets, at June 30, 2026. The increase in total loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $31.7 million, or 3.7%, an increase in commercial and industrial loans of $12.5 million, or 5.6%, partially offset by a decrease in commercial real estate loans of $33.7 million, or 3.1%. The decrease in commercial real estate loans was primarily driven by an increased level of prepayments in the commercial real estate loan portfolio and the partial charge-off of $1.8 million on the participation loan discussed above. Non-owner occupied commercial real estate loans decreased $27.3 million, or 3.0%, to $883.0 million, or 40.3% of total loans and owner-occupied commercial real estate loans decreased $6.5 million, or 3.4%, to $182.4 million, or 8.3% of total loans. Total delinquency was $4.7 million, or 0.21% of total loans, at June 30, 2026, compared to $3.1 million, or 0.14% of total loans at December 31, 2025. Of the $4.7 million in past due loans, 95.1% are residential real estate loans. At June 30, 2026, nonaccrual loans totaled $7.8 million, or 0.35% of total loans, compared to $5.2 million, or 0.24% of total loans, at December 31, 2025. The increase in nonaccrual loans was primarily due to the participation loan discussed above, which was placed on nonaccrual status following the borrower’s June 2026 Bankruptcy Filing. At June 30, 2026, and December 31, 2025, there were no loans 90 or more days past-due and still accruing interest. Total nonperforming assets, defined as nonaccrual loans and other real estate owned, totaled $7.8 million, or 0.28% of total assets, at June 30, 2026, compared to $5.2 million, or 0.19% of total assets, at December 31, 2025. At June 30, 2026, and December 31, 2025, the Company did not have any other real estate owned. At June 30, 2026, the allowance for credit losses was $20.2 million, or 0.92% of total loans and 260.2% of nonaccrual loans, compared to $20.3 million, or 0.93% of total loans and 393.2% of nonaccrual loans, at December 31, 2025. The decrease in the allowance for credit losses as a percentage of nonaccrual loans was due to the increase in nonaccrual loans from $5.2 million at December 31, 2025, to $7.8 million at June 30, 2026. Management continues to closely monitor the loan portfolio for any signs of weakness due to the speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and higher interest rates as well as any signs of deterioration in the borrower’s financial condition. Management continues to proactively take steps to mitigate risk in the loan portfolio. At June 30, 2026, total criticized loans, defined as special mention and substandard loans, totaled $63.9 million, or 2.9% of total loans, compared to $39.7 million, or 1.8% of total loans, at December 31, 2025. Loans designated special mention, which are not considered classified, increased $23.1 million, from $17.2 million, or 0.8% of total loans, at December 31, 2025, to $40.3 million, or 1.8% of total loans, at June 30, 2026. During the same period, substandard loans increased $1.1 million, or 4.9%, to $23.6 million, or 1.1% of total loans. Of the $40.3 million in loans designated special mention at June 30, 2026, $17.8 million, or 44.2%, are commercial and industrial loans, and $22.5 million, or 55.8%, are commercial real estate loans. Of the $23.6 million in loans categorized substandard at June 30, 2026, $7.2 million, or 30.5%, are commercial and industrial loans, $10.5 million, or 44.5%, are commercial real estate loans, and $5.9 million, or 25.0%, are residential real estate loans. Of the total $63.9 million in criticized loans at June 30, 2026, 95.6% are current and paying as agreed. 43 The increase in special mention loans from December 31, 2025, to June 30, 2026, resulted from the downgrade of two commercial relationships totaling $21.5 million, from pass risk ratings to special mention. The increase in substandard loans from December 31, 2025, to June 30, 2026, was primarily due to the downgrade of the participation loan discussed above. At June 30, 2026, the Company’s portion of the remaining carrying value of the participation loan was $1.6 million. Our commercial real estate portfolio is comprised of diversified property types that are primarily within our geographic footprint. At June 30, 2026, the commercial real estate portfolio totaled $1.1 billion and represented 48.6% of total loans. Of the $1.1 billion, $883.0 million, or 82.9% of the commercial real estate portfolio, was categorized as non-owner occupied commercial real estate and represented 317.6% of the Bank’s total risk-based capital. CRE Concentrations. The OCC, the FRB, and the FDIC (“Agencies”) issued guidance in 2006 which addresses institutions with increased concentrations of commercial real estate (“CRE”) loans. The guidance does not establish specific CRE lending limits; rather, it promotes sound risk management practices and appropriate levels of capital that will enable institutions to continue to pursue CRE lending in a safe and sound manner. In developing this guidance, the Agencies recognized that different types of CRE lending present different levels of risk, and that consideration should be given to the lower risk profiles and historically superior performance of certain types of CRE, such as well-structured multifamily housing finance, when compared to others, such as speculative office space construction. Institutions are encouraged to segment their CRE portfolios to acknowledge these distinctions for risk management purposes. The guidance focuses on those CRE loans for which the cash flow from the real estate is the primary source of repayment rather than loans to a borrower for which real estate collateral is taken as a secondary source of repayment or through an abundance of caution. Thus, for the purposes of the guidance, CRE loans include those loans with risk profiles sensitive to the condition of the general CRE market (for example, market demand, changes in capitalization rates, vacancy rates, or rents). CRE loans are land development and construction loans (including 1- to 4-family residential and commercial construction loans) and other land loans. CRE loans also include loans secured by multifamily property, and nonfarm nonresidential property where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. Excluded from the scope of this guidance are loans secured by nonfarm nonresidential properties where the primary source of repayment is the cashflow from the ongoing operations and activities conducted by the party, or affiliate of the party, who owns the property. As part of their ongoing supervisory monitoring processes, the Agencies use certain criteria to identify institutions that are potentially exposed to significant CRE concentration risk. An institution that has experienced rapid growth in CRE lending, has notable exposure to a specific type of CRE, or is approaching or exceeds the following supervisory criteria may be identified for further supervisory analysis of the level and nature of its CRE concentration risk: 1. Total reported loans for construction, land development, and other land represent 100 percent or more of the institution’s total risk-based capital; or 2. Total commercial real estate loans, as defined in this guidance, represent 300 percent or more of the institution’s total risk-based capital, and the outstanding balance of the institution’s commercial real estate loan portfolio has increased by 50 percent or more during the prior 36 months. The Agencies use the criteria as a preliminary step to identify institutions that may have CRE concentration risk. Because regulatory reports capture a broad range of CRE loans with varying risk characteristics, the supervisory monitoring criteria do not constitute limits on an institution’s lending activity but rather serve as high-level indicators to identify institutions potentially exposed to CRE concentration risk. The Company holds a concentration in commercial real estate loans. As of June 30, 2026, commercial real estate loans represented 383.2% of consolidated bank risk-based capital. Non-owner occupied commercial real estate loans totaled $883.0 million, or 317.6% of consolidated bank risk-based capital, and owner-occupied commercial real estate loans totaled $182.4 million, or 65.6% of consolidated bank risk-based capital. As of June 30, 2026, construction, land development, and other land loans represented 33.7% of consolidated bank risk-based capital. During the prior 36 months, the Company has experienced an increase in its commercial real estate portfolio of 5.0%. 44 The management team has extensive experience in underwriting commercial real estate loans and has implemented and continues to maintain heightened risk management procedures and strong underwriting criteria with respect to its commercial real estate portfolio. The Company’s Board of Directors (the “Board”) has established internal maximum limits on CRE as an asset class overall as well as sub limits within CRE by property class, to better manage and control the exposure to property classes during periods of changing economic conditions. The Board also has minimum targets for regulatory capital ratios that are in excess of well capitalized ratios. Our risk management process begins with a robust underwriting program. The underwriting and risk rating of all loans is completed by the Company’s Credit Department that is independent of the originating lender(s). The table below breaks down the commercial real estate portfolio outstanding balance by non-owner and owner occupied and by concentration as of June 30, 2026: Property Type Non-Owner Occupied Owner Occupied Total % of CRE Portfolio % of Total Loans % of Total Bank Risk-Based Capital (1) (Dollars in thousands) Office $ 169,471 $ 20,946 $ 190,417 18.0 % 8.7 % 68.5 % Apartment 170,511 — 170,511 16.0 % 7.8 % 61.3 % Industrial 109,511 40,149 149,660 14.0 % 6.8 % 53.8 % Retail 111,316 4,972 116,288 10.9 % 5.3 % 41.8 % Mixed Use 76,398 5,559 81,957 7.7 % 3.7 % 29.5 % Other 43,323 23,744 67,067 6.3 % 3.1 % 24.1 % Auto Sales and Service 7,727 54,368 62,095 5.8 % 2.8 % 22.3 % Self-Storage 45,913 65 45,978 4.3 % 2.1 % 16.5 % Hotel/Hospitality 40,761 — 40,761 3.8 % 1.9 % 14.7 % Shopping Center 29,411 6,476 35,887 3.4 % 1.6 % 12.9 % Warehouse 22,483 10,588 33,071 3.1 % 1.5 % 11.9 % Adult Care/Assisted Living 29,056 — 29,056 2.7 % 1.3 % 10.5 % School/Higher Education 9,928 15,505 25,433 2.4 % 1.2 % 9.2 % Student Housing 17,169 — 17,169 1.6 % 0.8 % 6.2 % Total commercial real estate $ 882,978 $ 182,372 $ 1,065,350 100.0 % 48.6 % 383.2 % % of Total Bank Risk-Based Capital (1) 317.6 % 65.6 % 383.2 % % of Total CRE loans 82.9 % 17.1 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. At June 30, 2026, of the $1.1 billion in commercial real estate loans, $883.0 million, or 82.9% of total commercial real estate loans, were categorized as non-owner occupied and represented 317.6% of total bank risk-based capital. 45 The table below breaks down the commercial real estate portfolio outstanding balance by non-owner and owner occupied and by concentration as of December 31, 2025: Property Type Non-Owner Occupied Owner Occupied Total % of CRE Portfolio % of Total Loans % of Total Bank Risk-Based Capital (1) (Dollars in thousands) Office $ 174,196 $ 20,961 $ 195,157 17.8 % 8.9 % 70.5 % Apartment 174,330 — 174,330 15.9 % 8.0 % 62.9 % Industrial 124,601 44,382 168,983 15.4 % 7.7 % 61.0 % Retail 110,356 5,102 115,458 10.5 % 5.3 % 41.7 % Mixed Use 75,593 5,741 81,334 7.4 % 3.7 % 29.4 % Other 45,445 25,376 70,821 6.4 % 3.3 % 25.5 % Automotive Sales and Service 6,850 55,605 62,455 5.6 % 2.9 % 22.5 % Self-Storage 46,106 67 46,173 4.2 % 2.1 % 16.7 % Hotel/Hospitality 41,582 — 41,582 3.8 % 1.9 % 15.0 % Shopping Center 28,854 6,292 35,146 3.2 % 1.6 % 12.7 % Warehouse 23,560 10,339 33,899 3.1 % 1.6 % 12.2 % Adult Care/Assisted Living 26,783 — 26,783 2.4 % 1.2 % 9.7 % School/Higher Education 10,420 14,959 25,379 2.3 % 1.2 % 9.2 % Student Housing 21,563 — 21,563 2.0 % 1.0 % 7.8 % Total commercial real estate $ 910,239 $ 188,824 $ 1,099,063 100.0 % 50.4 % 396.8 % % of Total Bank Risk-Based Capital (1) 328.6 % 68.2 % 396.8 % % of Total CRE loans 82.8 % 17.2 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. At December 31, 2025, of the $1.1 billion in commercial real estate loans, $910.2 million, or 82.8% of total commercial real estate loans, were categorized as non-owner occupied and represented 328.6% of total bank risk-based capital. The following table further breaks down the non-owner occupied commercial real estate portfolio balances by concentration, collateral location and weighted average loan-to-value (“LTV”) as of June 30, 2026: Property Type MA CT NH RI ME Other Total % of Total Bank Risk-Based Capital(1) Weighted Average LTV(2) (Dollars in thousands) Office $ 63,054 $ 57,296 $ 38,023 $ — $ 11,098 $ — $ 169,471 61.0 % 61.8 % Apartment 106,140 43,169 — 21,202 — — 170,511 61.3 % 51.1 % Industrial 59,580 34,310 — 11,205 — 4,416 109,511 39.4 % 53.0 % Retail 52,892 25,432 13,647 5,994 13,351 — 111,316 40.0 % 49.2 % Mixed Use 36,878 22,242 — 12,676 — 4,602 76,398 27.5 % 55.2 % Other 38,652 3,896 661 — 114 — 43,323 15.5 % 50.8 % Automotive Sales and Service 5,613 2,114 — — — — 7,727 2.8 % 64.7 % Self-Storage 35,969 9,180 764 — — — 45,913 16.5 % 55.1 % Hotel/Hospitality 19,694 21,067 — — — — 40,761 14.7 % 50.1 % Shopping Center 10,169 19,242 — — — — 29,411 10.6 % 48.7 % Warehouse 16,809 4,830 — — — 844 22,483 8.1 % 41.3 % Adult Care/Assisted Living 8,385 8,435 12,236 — — — 29,056 10.4 % 57.6 % School/Higher Education 9,928 — — — — — 9,928 3.6 % 42.5 % Student Housing 6,634 7,537 2,660 — — 338 17,169 6.2 % 54.7 % Total Non-Owner Occupied CRE $ 470,397 $ 258,750 $ 67,991 $ 51,077 $ 24,563 $ 10,200 $ 882,978 317.6 % 53.6 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. (2) Weighted average LTV is based on the original appraisal and the current loan exposure. 46 The following table further breaks down the non-owner occupied commercial real estate portfolio balances by concentration, collateral location, and weighted average LTV as of December 31, 2025: Property Type MA CT NH RI ME Other Total % of Total Bank Risk-Based Capital(1) Weighted Average LTV(2) (Dollars in thousands) Office $ 63,973 $ 60,433 $ 38,586 $ — $ 11,204 $ — $ 174,196 62.9 % 62.6 % Apartment 107,299 43,612 — 23,419 — — 174,330 62.9 % 52.2 % Industrial 74,031 34,887 — 11,229 — 4,454 124,601 45.0 % 56.4 % Retail 53,291 25,964 13,865 6,070 11,166 — 110,356 39.8 % 50.8 % Mixed Use 35,641 22,503 — 12,809 — 4,640 75,593 27.3 % 55.7 % Other 40,666 3,984 677 — 118 — 45,445 16.4 % 51.5 % Automotive Sales and Service 5,679 1,171 — — — — 6,850 2.5 % 64.9 % Self-Storage 36,155 9,180 771 — — — 46,106 16.6 % 55.4 % Hotel/Hospitality 20,074 21,508 — — — — 41,582 15.0 % 51.1 % Shopping Center 9,227 19,627 — — — — 28,854 10.4 % 48.4 % Warehouse 17,034 4,889 — — — 1,637 23,560 8.5 % 41.4 % Adult Care/Assisted Living 8,543 8,514 9,726 — — — 26,783 9.7 % 58.1 % School/Higher Education 10,420 — — — — — 10,420 3.8 % 43.3 % Student Housing 3,628 14,934 2,660 — — 341 21,563 7.8 % 60.7 % Total Non-Owner Occupied CRE $ 485,661 $ 271,206 $ 66,285 $ 53,527 $ 22,488 $ 11,072 $ 910,239 328.6 % 54.9 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. (2) Weighted average LTV is based on the original appraisal and the current loan exposure. The Company also underwrites and originates owner occupied commercial real estate loans. These loans are typically term loans made to support properties that rely upon the operations of the business occupying the property for repayment. The Agencies specifically excluded owner occupied commercial real estate from their concentration guidance, as the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the party, or affiliate of the party, who owns the property. The table below depicts a well-diversified portfolio of owner occupied commercial real estate portfolio as of June 30, 2026: Property Type MA CT NH Other Total % of Total Bank Risk-Based Capital(1) Weighted Average LTV(2) (Dollars in thousands) Owner Occupied CRE Office $ 18,205 $ 2,741 $ — $ — $ 20,946 7.5 % 55.3 % Industrial 33,987 5,973 — 189 40,149 14.4 % 50.8 % Retail 4,972 — — — 4,972 1.8 % 49.6 % Mixed Use 4,797 762 — — 5,559 2.0 % 55.4 % Other 14,676 8,456 612 — 23,744 8.6 % 40.7 % Automotive Sales and Service 31,202 23,166 — — 54,368 19.6 % 58.2 % Self-Storage 65 — — — 65 -% 49.7 % Shopping Center 4,356 2,120 — — 6,476 2.3 % 55.9 % Warehouse 10,256 332 — — 10,588 3.8 % 63.6 % School/Higher Education 14,545 960 — — 15,505 5.6 % 59.8 % Total Owner Occupied CRE $ 137,061 $ 44,510 $ 612 $ 189 $ 182,372 65.6 % 54.0 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. (2) Weighted average LTV is based on the original appraisal and the current loan exposure. 47 The table below depicts a well-diversified portfolio of owner occupied commercial real estate portfolio as of December 31, 2025: Property Type MA CT NH Other Total % of Total Bank Risk-Based Capital(1) Weighted Average LTV(2) (Dollars in thousands) Owner Occupied CRE Office $ 18,550 $ 2,411 $ — $ — $ 20,961 7.6 % 56.1 % Industrial 37,852 6,331 — 199 44,382 16.0 % 50.9 % Retail 5,102 — — — 5,102 2.1 % 50.4 % Mixed Use 4,964 777 — — 5,741 2.1 % 56.3 % Other 15,903 8,600 873 — 25,376 9.0 % 40.6 % Automotive Sales and Service 32,030 23,575 — — 55,605 20.1 % 59.2 % Self-Storage 67 — — — 67 — % 51.3 % Shopping Center 4,201 2,091 — — 6,292 2.2 % 55.6 % Warehouse 9,992 347 — — 10,339 3.7 % 63.9 % School/Higher Education 14,959 — — — 14,959 5.4 % 63.9 % Total Owner Occupied CRE $ 143,620 $ 44,132 $ 873 $ 199 $ 188,824 68.2 % 54.6 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. (2) Weighted average LTV is based on the original appraisal and the current loan exposure. Commercial Real Estate Office Exposure. Our total office related commercial real estate loans (which is comprised of loans within our commercial real estate portfolio that are secured by office space, medical office space, and mixed-use where rental income is primarily from office space) totaled $190.4 million, or 68.5% of total bank risk-based capital, and $195.2 million, or 70.5% of total bank risk-based capital, as of June 30, 2026 and December 31, 2025, respectively. The table below breaks the office-related commercial real estate loans by collateral type for the periods noted: June 30, 2026 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) Collateral Type: Office/Medical $ 106,666 $ 10,373 $ 117,039 61.4 % 42.1 % Office/Professional Metro 3,517 7,586 11,103 5.8 % 4.0 % Office/Professional Suburban 34,260 2,779 37,039 19.5 % 13.3 % Office/Professional Urban 25,028 208 25,236 13.3 % 9.1 % Total Office Portfolio $ 169,471 $ 20,946 $ 190,417 100.0 % 68.5 % December 31, 2025 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) Collateral Type: Office/Medical $ 108,113 $ 9,941 $ 118,054 60.5 % 42.6 % Office/Professional Metro 3,577 7,796 11,373 5.8 % 4.1 % Office/Professional Suburban 35,686 3,011 38,697 19.8 % 14.0 % Office/Professional Urban 26,820 213 27,033 13.9 % 9.8 % Total Office Portfolio $ 174,196 $ 20,961 $ 195,157 100.0 % 70.5 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. 48 CRE office loans are primarily concentrated in Massachusetts, where approximately 42.7% of the total balance of CRE office loans were located at June 30, 2026, compared to 42.3% at December 31, 2025. The Company does not have CRE loans secured by office real estate in greater Boston or New York. June 30, 2026 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) By State: Massachusetts $ 63,054 $ 18,205 $ 81,259 42.7 % 29.2 % Connecticut 57,296 2,741 60,037 31.5 % 21.6 % New Hampshire 38,023 — 38,023 20.0 % 13.7 % Other 11,098 — 11,098 5.8 % 4.0 % Total Office Portfolio $ 169,471 $ 20,946 $ 190,417 100.0 % 68.5 % December 31, 2025 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) By State: Massachusetts $ 63,973 $ 18,550 $ 82,523 42.3 % 29.8 % Connecticut 60,433 2,411 62,844 32.2 % 22.7 % New Hampshire 38,586 — 38,586 19.8 % 14.0 % Other 11,204 — 11,204 5.7 % 4.0 % Total Office Portfolio $ 174,196 $ 20,961 $ 195,157 100.0 % 70.5 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. The following table sets forth the CRE office loans for non-owner occupied and owner occupied CRE and their credit quality indicators as of the dates indicated: June 30, 2026 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) By Risk Rating: Pass $ 159,927 $ 20,677 $ 180,604 94.8 % 65.0 % Special Mention 69 — 69 — % — % Substandard 9,475 269 9,744 5.2 % 3.5 % Total Office Portfolio $ 169,471 $ 20,946 $ 190,417 100.0 % 68.5 % December 31, 2025 Non-Owner Occupied Owner Occupied Total % of Office Portfolio % of Total Bank Risk-Based Capital(1) (Dollars in thousands) By Risk Rating: Pass $ 166,275 $ 20,683 $ 186,958 95.8 % 67.5 % Special Mention 72 — 72 — % — % Substandard 7,849 278 8,127 4.2 % 3.0 % Total Office Portfolio $ 174,196 $ 20,961 $ 195,157 100.0 % 70.5 % (1) Due to loan classifications, the percentage of Total Bank Risk-Based Capital may differ from the call report. 49 Given prevailing market conditions such as recent sustained increases in interest rates, reduced occupancy as a result of the increase in hybrid work arrangements post-COVID, and lower commercial real estate valuations, we carefully monitor these loans for signs of deterioration in credit quality and other risks. Such heightened monitoring includes incremental risk management strategies undertaken by management, including more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis, which may include monitoring concentration limitations, including concentrations by loan type, property type, geographic area, and with participants, where applicable, and risk diversification, tracking aggregated policy and underwriting exceptions and stress testing the loan portfolios. Deposits. At June 30, 2026, total deposits were $2.4 billion and increased $40.5 million, or 1.7%, from December 31, 2025. Core deposits, which the Company defines as all deposits except time deposits, decreased $5.3 million, or 0.3%, from $1.7 billion, or 70.8% of total deposits, at December 31, 2025, to $1.7 billion, or 69.4% of total deposits, at June 30, 2026. Non-interest-bearing deposits increased $6.1 million, or 1.0%, to $600.6 million, and represented 25.0% of total deposits, money market accounts increased $2.7 million, or 0.4%, to $718.4 million, and savings accounts increased $6.6 million, or 3.5%, to $193.2 million. These increases were partially offset by a decrease in interest-bearing checking accounts of $20.7 million, or 11.9%, to $153.5 million. Time deposits increased $45.8 million, or 6.6%, from $689.9 million at December 31, 2025, to $735.7 million at June 30, 2026. The Company did not have brokered time deposits at June 30, 2026, and December 31, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At June 30, 2026, the Bank’s uninsured deposits totaled $722.7 million, or 30.1% of total deposits, compared to $697.6 million, or 29.5% of total deposits, at December 31, 2025. Uninsured amounts were based on the portion of customer account balances that exceeded the FDIC limit of $250,000. At June 30, 2026, there was one consumer deposit relationship, which is our largest deposit relationship, with a household concentration comprising 5.8% of total deposits, compared to 5.0% of total deposits at December 31, 2025. The next largest deposit relationship is to a local municipality with a concentration of 1.3% of total deposits at June 30, 2026, and 1.9% at December 31, 2025. The table below is a summary of our deposit balances for the periods noted: At June 30, 2026 At December 31, 2025 Balance % of Total Deposits Balance % of Total Deposits (Dollars in thousands) Demand and interest-bearing checking: Demand deposit accounts $ 600,599 25.0 % $ 594,516 25.2 % Interest-bearing checking accounts 153,531 6.4 % 174,227 7.4 % Savings: Regular savings accounts 193,160 8.0 % 186,597 7.9 % Money market accounts 718,361 29.9 % 715,620 30.3 % Total core deposits 1,665,651 69.4 % 1,670,960 70.8 % Time deposits 735,749 30.6 % 689,948 29.2 % Total deposits $ 2,401,400 100.0 % $ 2,360,908 100.0 % Borrowings. At June 30, 2026, total borrowings decreased $43.5 million, or 41.0%, from $106.1 million at December 31, 2025, to $62.6 million. At June 30, 2026, short-term borrowings increased $4.5 million, or 33.7%, to $17.7 million, compared to $13.3 million at December 31, 2025. At June 30, 2026, long-term borrowings decreased $48.0 million, or 65.8%, to $25.0 million from $73.0 million at December 31, 2025. 50 At June 30, 2026, and December 31, 2025, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes (the “Notes”). Beginning on May 1, 2026, the Notes bear interest at a floating rate equal to the 90-day average secured overnight financing rate (“SOFR”) plus 412 basis points. As of June 30, 2026, the Company had $547.5 million of additional borrowing capacity at the FHLB, $392.7 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks. Capital. At June 30, 2026, shareholders’ equity was $248.3 million, or 9.1% of total assets, compared to $247.6 million, or 9.1% of total assets, at December 31, 2025. The change was primarily attributable to net income of $8.4 million, partially offset by cash dividends paid of $2.8 million and the repurchase of 381,000 shares at a cost of $5.2 million. At June 30, 2026, total shares outstanding were 20,045,872. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025 General. The Company reported a decrease in net income of $992,000, or 21.6%, from $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025, to $3.6 million, or $0.18 per diluted share, for the three months ended June 30, 2026. Net interest income increased $1.7 million, or 9.5%, provision for credit losses increased $2.2 million, non-interest income decreased $17,000, or 0.5%, and non-interest expense increased $699,000, or 4.5%. Return on average assets and return on average equity were 0.53% and 5.84%, respectively, for the three months ended June 30, 2026, compared to 0.69% and 7.76%, respectively, for the three months ended June 30, 2025. Net Interest and Dividend Income. The following tables set forth the information relating to our average balance and net interest income for the three months ended June 30, 2026 and 2025, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Yields and costs are derived by dividing annualized interest income by the average balance of interest-earning assets and annualized interest expense by the average balance of interest-bearing liabilities for the periods shown. The interest rate spread is the difference between the total average yield on interest-earning assets and the cost of interest-bearing liabilities. Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. Average balances are derived from actual daily balances over the periods indicated. Interest income includes fees earned when the real estate loans are prepaid or refinanced. For analytical purposes, the interest earned on tax-exempt assets is adjusted to a tax-equivalent basis to recognize the income tax savings which facilitates comparison between taxable and tax-exempt assets. 51 Three Months Ended June 30, 2026 2025 Average Average Yield/ Average Average Yield/ Balance Interest Cost(8) Balance Interest Cost(8) (Dollars in thousands) ASSETS: Interest-earning assets Loans(1)(2) $ 2,189,867 $ 28,084 5.14 % $ 2,081,319 $ 26,335 5.08 % Securities(2) 355,904 2,457 2.77 375,074 2,588 2.77 Other investments - at cost 14,171 156 4.42 15,062 169 4.50 Short-term investments(3) 26,034 208 3.20 58,622 641 4.39 Total interest-earning assets 2,585,976 30,905 4.79 2,530,077 29,733 4.71 Total non-interest-earning assets 152,735 156,247 Total assets $ 2,738,711 $ 2,686,324 LIABILITIES AND EQUITY: Interest-bearing liabilities Interest-bearing checking accounts $ 147,413 $ 360 0.98 % $ 165,329 $ 424 1.03 % Savings accounts 193,850 58 0.12 188,498 55 0.12 Money market accounts 728,462 3,847 2.12 687,621 3,600 2.10 Time deposit accounts 722,603 6,093 3.38 690,555 6,358 3.69 Total interest-bearing deposits 1,792,328 10,358 2.32 1,732,003 10,437 2.42 Short-term borrowings and long-term debt 85,845 1,102 5.15 122,070 1,533 5.04 Interest-bearing liabilities 1,878,173 11,460 2.45 1,854,073 11,970 2.59 Non-interest-bearing deposits 593,110 572,833 Other non-interest-bearing liabilities 20,392 22,207 Total non-interest-bearing liabilities 613,502 595,040 Total liabilities 2,491,675 2,449,113 Total equity 247,036 237,211 Total liabilities and equity $ 2,738,711 $ 2,686,324 Less: Tax-equivalent adjustment(2) (124 ) (121 ) Net interest and dividend income $ 19,321 $ 17,642 Net interest rate spread(4) 2.33 % 2.10 % Net interest rate spread, on a tax equivalent basis(5) 2.34 % 2.12 % Net interest margin(6) 3.00 % 2.80 % Net interest margin, on a tax equivalent basis(7) 3.02 % 2.82 % Ratio of average interest-earning assets to average interest-bearing liabilities 137.69 % 136.46 (1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds. (2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income. (3) Short-term investments include federal funds sold. (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the tax-equivalent weighted average cost of interest-bearing liabilities. See “Explanation of Use of Non-GAAP Financial Measurements.” (6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets. (7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. See “Explanation of Use of Non-GAAP Financial Measurements.” (8) Annualized. 52 Rate/Volume Analysis. The following table shows how changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected our interest and dividend income and interest expense during the periods indicated. Information is provided in each category with respect to: (1) interest income changes attributable to changes in volume (changes in volume multiplied by prior rate); (2) interest income changes attributable to changes in rate (changes in rate multiplied by prior volume); and (3) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate. Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Increase (Decrease) Due to Volume Rate Net Interest-earning assets (Dollars in thousands) Loans (1) $ 1,373 $ 376 $ 1,749 Securities (1) (132 ) 1 (131 ) Other investments - at cost (10 ) (3 ) (13 ) Short-term investments (356 ) (77 ) (433 ) Total interest-earning assets 875 297 1,172 Interest-bearing liabilities Interest-bearing checking accounts (46 ) (18 ) (64 ) Savings accounts 2 1 3 Money market accounts 214 33 247 Time deposits 295 (560 ) (265 ) Short-term borrowings and long-term debt (455 ) 24 (431 ) Total interest-bearing liabilities 10 (520 ) (510 ) Change in net interest and dividend income (1) $ 865 $ 817 $ 1,682 (1) Securities, loan income and change in net interest and dividend income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest income to agree to the amount reported in the consolidated statements of net income. See “Explanation of Use of Non-GAAP Financial Measurements.” Net interest income increased $1.7 million, or 9.5%, to $19.3 million, for the three months ended June 30, 2026, from $17.6 million for the three months ended June 30, 2025. The increase in net interest income was due to an increase in interest and dividend income of $1.2 million, or 3.9%, and a decrease in interest expense of $510,000, or 4.3%. During the three months ended June 30, 2026, and the three months ended June 30, 2025, the Company recorded prepayment penalties related to payoffs in the commercial real estate portfolio of $82,000 and $425,000, respectively. Excluding the prepayment penalties, net interest income increased $2.0 million, or 11.7%. The increase in interest and dividend income was primarily due to the increase in average loans of $108.5 million, or 5.2%, and an increase of seven basis points in the average loan yield, without the impact of tax-equivalent adjustments, from the three months ended June 30, 2025 to the three months ended June 30, 2026. The net interest margin increased 20 basis points from 2.80% for the three months ended June 30, 2025 to 3.00% for the three months ended June 30, 2026. The net interest margin, on a tax-equivalent basis, increased 20 basis points from 2.82% for the three months ended June 30, 2025 to 3.02% for the three months ended June 30, 2026. Excluding the prepayment penalties discussed above, the net interest margin increased 25 basis points from 2.73% for the three months ended June 30, 2025 to 2.98%, for the three months ended June 30, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased eight basis points from 4.69% for the three months ended June 30, 2025 to 4.77%, for the three months ended June 30, 2026. The average loan yield, without the impact of tax-equivalent adjustments, increased seven basis points from 5.05% for the three months ended June 30, 2025, to 5.12% for the three months ended June 30, 2026. During the three months ended June 30, 2026, average interest-earning assets increased $55.9 million, or 2.2%, to $2.6 billion, primarily due to an increase in average loans of $108.6 million, or 5.2%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $32.6 million, or 55.6%, and a decrease in average securities of $19.2 million, or 5.1%. 53 The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 12 basis points from 1.98% for the three months ended June 30, 2025, to 1.86% for the three months ended June 30, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased two basis points from 1.01% for the three months ended June 30, 2025, to 1.03% for the three months ended June 30, 2026. The average cost of time deposits decreased 31 basis points from 3.69% for the three months ended June 30, 2025, to 3.38% for the three months ended June 30, 2026. The average cost of borrowings, including subordinated debt, increased 11 basis points from 5.04% for the three months ended June 30, 2025, to 5.15%, for the three months ended June 30, 2026. Average demand deposits, an interest-free source of funds, increased $20.3 million, or 3.5%, from $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025, to $593.1 million, or 24.9% of total average deposits, for the three months ended June 30, 2026. Provision for (Reversal of) Credit Losses. The provision for credit losses is reviewed by management based upon our evaluation of economic and business conditions affecting our key lending areas and other conditions, such as new loan products, credit quality trends (including trends in nonperforming loans expected to result from existing conditions), collateral values, loan volumes and concentrations, specific industry conditions using reasonable and supportable forecasts and the impact that such conditions were believed to have had on the collectability of the loan portfolio. During the three months ended June 30, 2026, the Company recorded a provision for credit losses of $1.6 million, due to the partial charge-off of $1.8 million on the participation loan discussed above. The Company does not have any additional expected losses to the borrower or guarantor associated with the participation loan. At June 30, 2026, the Company’s portion of the remaining carrying value of the participation loan was $1.6 million. The Company currently expects full recovery of its portion of the remaining carrying value through the anticipated sale of the underlying collateral. During the three months ended June 30, 2025, the Company recorded a reversal of credit losses of $615,000 as a result of a recovery in the amount of $624,000 on a charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. The provision for credit losses was also determined by a number of factors: the continued overall credit performance of the Company’s diversified loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. Management believes that the allowance for credit losses are at adequate levels, however, future adjustments may be necessary if economic, real estate market values and other conditions differ substantially from the current operating environment. During the three months ended June 30, 2026, the Company recorded net charge-offs of $1.8 million, or 0.33% of average loans, on an annualized basis, compared to net recoveries of $585,000, or 0.11% of average loans, on an annualized basis, for the three months ended June 30, 2025. During the three months ended June 30, 2026, the increase in net charge-offs was due to the $1.8 million charge-off of the participation loan discussed above. Non-Interest Income. During the three months ended June 30, 2026, non-interest income decreased $17,000, or 0.5%, to $3.4 million from $3.4 million for the three months ended June 30, 2025. During the three months ended June 30, 2026, service charges and fees on deposits increased $187,000, or 8.4%, wealth management income increased $96,000, or 32.8%, income from BOLI increased $19,000, or 3.7%, from $516,000 for the three months ended June 30, 2025, to $535,000 for the three months ended June 30, 2026. During the three months ended June 30, 2026 and the three months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $47,000 and $25,000, respectively. During the three months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments and did not have comparable income during the three months ended June 30, 2026. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2026. 54 Non-Interest Expense. For the three months ended June 30, 2026, non-interest expense increased $699,000, or 4.5%, to $16.4 million from $15.7 million for the three months ended June 30, 2025. The increase in non-interest expense was due to an increase in salaries and benefits of $645,000, or 7.3%, due to annual merit increases and increases in health insurance benefits, an increase in software related expense of $67,000, or 10.4%, an increase in occupancy expense of $54,000, or 4.3%, an increase in other non-interest expense of $31,000, or 2.3%, an increase in data processing expense of $28,000, or 3.0%, and an increase in advertising and marketing expense of $14,000, or 3.2%. These increases were partially offset by a decrease in furniture and equipment expense of $87,000, or 17.7%, a decrease in debit card and ATM processing fees of $30,000, or 4.5%, and a decrease in FDIC insurance expense of $22,000, or 5.5%. For the three months ended June 30, 2026, the efficiency ratio was 72.0%, compared to 74.4% for the three months ended June 30, 2025. For the three months ended June 30, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 72.2% compared to 75.3% for the three months ended June 30, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by an increase in total revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. See “Explanation of Use of Non-GAAP Financial Measurements” for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures. Income Taxes. Income tax expense for the three months ended June 30, 2026, was $1.2 million, or an effective tax rate of 25.1%, compared to $1.4 million, or an effective tax rate of 23.7%, for the three months ended June 30, 2025. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2026. COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025 General. For the six months ended June 30, 2026, the Company reported net income of $8.4 million, or $0.42 per diluted share, compared to $6.9 million, or $0.34 per diluted share, for the six months ended June 30, 2025. Net interest income increased $5.0 million, or 15.0%, provision for credit losses increased $2.1 million, non-interest income increased $657,000, or 10.6%, and non-interest expense increased $1.5 million, or 4.9%, during the same period. Return on average assets and return on average equity were 0.62% and 6.80% for the six months ended June 30, 2026, respectively, compared to 0.52% and 5.87% for the six months ended June 30, 2025, respectively. Net Interest and Dividend Income. The following tables set forth the information relating to our average balance and net interest income for the six months ended June 30, 2026 and 2025, and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Yields and costs are derived by dividing interest income by the average balance of interest-earning assets and interest expense by the average balance of interest-bearing liabilities for the periods shown. The interest rate spread is the difference between the total average yield on interest-earning assets and the cost of interest-bearing liabilities. Net interest margin represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. Average balances are derived from actual daily balances over the periods indicated. Interest income includes fees earned when the real estate loans are prepaid or refinanced. For analytical purposes, the interest earned on tax-exempt assets is adjusted to a tax-equivalent basis to recognize the income tax savings which facilitates comparison between taxable and tax-exempt assets. 55 Six Months Ended June 30, 2026 2025 Average Average Yield/ Average Average Yield/ Balance Interest Cost(8) Balance Interest Cost(8) (Dollars in thousands) ASSETS: Interest-earning assets Loans(1)(2) $ 2,188,207 $ 55,643 5.13 % $ 2,077,424 $ 51,440 4.99 % Securities(2) 359,921 4,962 2.78 370,249 5,010 2.73 Other investments - at cost 14,874 303 4.11 14,941 360 4.86 Short-term investments(3) 25,436 397 3.15 67,282 1,481 4.44 Total interest-earning assets 2,588,438 61,305 4.78 2,529,896 58,291 4.65 Total non-interest-earning assets 153,256 156,489 Total assets $ 2,741,694 $ 2,686,385 LIABILITIES AND EQUITY: Interest-bearing liabilities Interest-bearing checking accounts $ 148,137 660 0.90 $ 153,212 674 0.89 Savings accounts 191,975 101 0.11 186,196 95 0.10 Money market accounts 728,525 7,669 2.12 695,872 7,569 2.19 Time deposit accounts 707,193 11,906 3.40 696,618 13,475 3.90 Total interest-bearing deposits 1,775,830 20,336 2.31 1,731,898 21,813 2.54 Short-term borrowings and long-term debt 105,907 2,580 4.91 122,426 3,060 5.04 Interest-bearing liabilities 1,881,737 22,916 2.46 1,854,324 24,873 2.70 Non-interest-bearing deposits 590,820 571,245 Other non-interest-bearing liabilities 20,900 23,826 Total non-interest-bearing liabilities 611,720 595,071 Total liabilities 2,493,457 2,449,395 Total equity 248,237 236,990 Total liabilities and equity $ 2,741,694 $ 2,686,385 Less: Tax-equivalent adjustment(2) (243 ) (242 ) Net interest and dividend income $ 38,146 $ 33,176 Net interest rate spread(4) 2.30 % 1.92 % Net interest rate spread, on a tax equivalent basis(5) 2.32 % 1.95 % Net interest margin(6) 2.97 % 2.64 % Net interest margin, on a tax equivalent basis(7) 2.99 % 2.66 % Ratio of average interest-earning assets to average interest-bearing liabilities 137.56 % 136.43 % (1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds. (2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income. (3) Short-term investments include federal funds sold. (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the tax-equivalent weighted average cost of interest-bearing liabilities. See “Explanation of Use of Non-GAAP Financial Measurements.” (6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets. (7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets. See “Explanation of Use of Non-GAAP Financial Measurements.” (8) Annualized. 56 Rate/Volume Analysis. The following table shows how changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected our interest and dividend income and interest expense during the periods indicated. Information is provided in each category with respect to: (1) interest income changes attributable to changes in volume (changes in volume multiplied by prior rate); (2) interest income changes attributable to changes in rate (changes in rate multiplied by prior volume); and (3) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Increase (Decrease) Due to Volume Rate Net Interest-earning assets (Dollars in thousands) Loans (1) $ 2,743 $ 1,460 $ 4,203 Securities (1) (140 ) 92 (48 ) Other investments - at cost (2 ) (55 ) (57 ) Short-term investments (921 ) (163 ) (1,084 ) Total interest-earning assets 1,680 1,334 3,014 Interest-bearing liabilities Interest-bearing checking accounts (22 ) 8 (14 ) Savings accounts 3 3 6 Money market accounts 355 (255 ) 100 Time deposits 205 (1,774 ) (1,569 ) Short-term borrowings and long-term debt (413 ) (67 ) (480 ) Total interest-bearing liabilities 128 (2,085 ) (1,957 ) Change in net interest and dividend income $ 1,552 $ 3,419 $ 4,971 (1) Securities, loan income and change in net interest and dividend income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest income to agree to the amount reported in the consolidated statements of net income. See “Explanation of Use of Non-GAAP Financial Measurements.” During the six months ended June 30, 2026, net interest income increased $5.0 million, or 15.0%, to $38.1 million, compared to $33.2 million for the six months ended June 30, 2025. The increase in net interest income was due to an increase in interest and dividend income of $3.0 million, or 5.2%, driven by higher interest income from loans, and a decrease in interest expense of $2.0 million, or 7.9%. The decrease in interest expense was due to a decrease in interest expense on deposits of $1.5 million, or 6.8%, and a decrease in interest expense on borrowings of $480,000, or 15.7%. The net interest margin increased 33 basis points from 2.64%, for the six months ended June 30, 2025, to 2.97% for the six months ended June 30, 2026. The net interest margin, on a tax-equivalent basis, increased 33 basis points from 2.66%, for the six months ended June 30, 2025, to 2.99% for the six months ended June 30, 2026. During the six months ended June 30, 2026 and the six months ended June 30, 2025, the Company recorded prepayment penalties related to payoffs in the commercial real estate portfolio of $98,000 and $425,000, respectively. Excluding the prepayment penalties, the net interest margin increased 35 basis points from 2.61%, for the six months ended June 30, 2025 to 2.96%, for the six months ended June 30, 2026. The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.76% for the six months ended June 30, 2026, compared to 4.63% for the six months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, was 5.11% for the six months ended June 30, 2026, compared to 4.97% for the six months ended June 30, 2025. During the six months ended June 30, 2026, average interest-earning assets increased $58.5 million, or 2.3%, to $2.6 billion, from the same period in 2025. The increase was primarily due to an increase in average loans of $110.8 million, or 5.3%, partially offset by a decrease in average short-term investments, consisting of cash and cash equivalents, of $41.8 million, or 62.2%, and a decrease in average securities of $10.3 million, or 2.8%. 57 The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 20 basis points from 2.07% for the six months ended June 30, 2025, to 1.87% for the six months ended June 30, 2026. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased three basis points to 1.02% for the six months ended June 30, 2026, from 1.05% for the six months ended June 30, 2025. The average cost of time deposits decreased 50 basis points from 3.90% for the six months ended June 30, 2025, to 3.40% for the six months ended June 30, 2026. The average cost of borrowings, including subordinated debt, decreased 13 basis points from 5.04% for the six months ended June 30, 2025, to 4.91% for the six months ended June 30, 2026. Average demand deposits, an interest-free source of funds, increased $19.6 million, or 3.4%, from $571.2 million, or 24.8% of total average deposits, for the six months ended June 30, 2025, to $590.8 million, or 25.0% of total average deposits, for the six months ended June 30, 2026. Provision for (Reversal of) Credit Losses. During the six months ended June 30, 2026, the Company recorded a provision for credit losses of $1.6 million, compared to a reversal of credit losses of $473,000 during the six months ended June 30, 2025. The increase in the provision for credit losses was primarily due to the partial charge-off of $1.8 million on the participation loan discussed above. The provision for credit losses was also determined by a number of factors: the continued overall credit performance of the Company’s diversified loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment. Management believes that the allowance for credit losses are at adequate levels, however, future adjustments may be necessary if economic, real estate market values and other conditions differ substantially from the current operating environment. The Company recorded net charge-offs of $1.8 million, or 0.17% of average loans, on an annualized basis, for the six months ended June 30, 2026, as compared to net recoveries of $556,000, or 0.05%, of average loans, on an annualized basis, for the six months ended June 30, 2025. The increase in net charge-offs was due to the $1.8 million charge-off of the participation loan discussed above. During the six months ended June 30, 2025, the Company recorded a recovery of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. Non-Interest Income. For the six months ended June 30, 2026, non-interest income increased $657,000, or 10.6%, from $6.2 million during the six months ended June 30, 2025, to $6.8 million. During the six months ended June 30, 2026, non-interest income included the recognition of $450,000 in BOLI death benefits. Excluding the BOLI death benefits, non-interest income increased $207,000, or 3.4%. During the same period, service charges and fees on deposits increased $295,000, or 6.9%, wealth management income increased $225,000, or 40.6%, and income from BOLI increased $22,000, or 2.2%. During the six months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments and did not have comparable income during the six months ended June 30, 2026. During the six months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the six months ended June 30, 2026. During the six months ended June 30, 2026, the Company reported unrealized gains on marketable equity securities of $34,000, compared to unrealized gains on marketable equity securities of $20,000 during the six months ended June 30, 2025. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the six months ended June 30, 2025, the Company reported $11,000 in gains from mortgage banking activities and did not have comparable gains or losses during the six months ended June 30, 2026. 58 Non-Interest Expense. For the six months ended June 30, 2026, non-interest expense increased $1.5 million, or 4.9%, to $32.4 million, compared to $30.8 million for the six months ended June 30, 2025. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.5 million, or 8.5%, due to annual merit increases and increases in health insurance benefits. During the same period, occupancy expense increased $204,000, or 7.6%, due to an increase in snow removal costs of $111,000, or 76.6%. Software related expenses increased $97,000, or 7.4%, debit card and ATM processing fees increased $56,000, or 4.5%, and advertising expense increased $27,000, or 3.1%. These increases were partially offset by a decrease in furniture and equipment expense of $141,000, or 14.1%, a decrease in FDIC insurance expense of $61,000, or 7.3%, a decrease in other non-interest expense of $49,000, or 1.8%, a decrease in professional fees of $38,000, or 3.3%, and a decrease in data processing expense of $33,000, or 1.8%. For the six months ended June 30, 2026, the efficiency ratio was 72.0% compared to 78.4% for the six months ended June 30, 2025. For the six months ended June 30, 2026, the adjusted efficiency ratio, a non-GAAP financial measure, was 72.7%, compared to 78.9% for the six months ended June 30, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues, defined as the sum of net interest income and non-interest income, during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The adjusted efficiency ratio is a non-GAAP measure. See “Explanation of Use of Non-GAAP Financial Measurements” for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures. Income Taxes. Income tax expense for the six months ended June 30, 2026, was $2.6 million, representing an effective tax rate of 23.7%, compared to $2.1 million, representing an effective tax rate of 23.2%, for the six months ended June 30, 2025. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2026. Explanation of Use of Non-GAAP Financial Measurements. We believe that it is common practice in the banking industry to present interest income and related yield information on tax-exempt loans and securities on a tax-equivalent basis, as well as presenting tangible book value per share and adjusted efficiency ratio, and that such information is useful to investors because it facilitates comparisons among financial institutions. However, the adjustment of interest income and yields on tax-exempt loans and securities to a tax-equivalent amount, as well as the presentation of tangible book value per share and adjusted efficiency ratio, may be considered to include financial information that is not in compliance with GAAP. A reconciliation from GAAP to non-GAAP is provided below. At June 30, 2026 At June 30, 2025 (Dollars in thousands, except per share data) Book Value per Share (GAAP) $ 12.39 $ 11.68 Non-GAAP adjustments: Goodwill (0.62 ) (0.61 ) Core deposit intangible (0.05 ) (0.06 ) Tangible Book Value per Share (non-GAAP) $ 11.72 $ 11.01 Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (Dollars in thousands) Loan income (no tax adjustment) $ 27,960 $ 26,214 $ 55,400 $ 51,198 Tax-equivalent adjustment (1) 124 121 243 242 Loan income (tax-equivalent basis) $ 28,084 $ 26,335 $ 55,643 $ 51,440 59 Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (Dollars in thousands) Net interest income (no tax adjustment) $ 19,321 $ 17,642 $ 38,146 $ 33,176 Tax-equivalent adjustment (1) 124 121 243 242 Net interest income (tax-equivalent basis) $ 19,445 $ 17,763 $ 38,389 $ 33,418 Net interest income (no tax adjustment) $ 19,321 $ 17,642 $ 38,146 $ 33,176 Less: Prepayment penalties 82 425 98 425 Adjusted net interest income (non-GAAP) $ 19,239 $ 17,217 $ 38,048 $ 32,751 Average interest-earning assets $ 2,585,976 $ 2,530,077 $ 2,588,438 $ 2,529,896 Net interest margin (no tax adjustment) 3.00 % 2.80 % 2.97 % 2.64 % Net interest margin (tax-equivalent) 3.02 % 2.82 % 2.99 % 2.66 % Net interest margin, excluding prepayment penalties (no tax adjustment) (non-GAAP) 2.98 % 2.73 % 2.96 % 2.61 % Efficiency Ratio: Non-interest Expense (GAAP) $ 16,355 $ 15,656 $ 32,363 $ 30,840 Net Interest Income (GAAP) $ 19,321 $ 17,642 $ 38,146 $ 33,176 Non-interest Income (GAAP) $ 3,394 $ 3,411 $ 6,827 $ 6,170 Non-GAAP adjustments: Unrealized gain on marketable equity securities (47 ) (25 ) (34 ) (20 ) Gain on non-marketable equity investments — (243 ) — (243 ) Gain on bank-owned life insurance death benefits (1 ) — (450 ) — Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) $ 3,346 $ 3,143 $ 6,343 $ 5,907 Total Revenue for Adjusted Efficiency Ratio (non-GAAP) $ 22,667 $ 20,785 $ 44,489 $ 39,083 Efficiency Ratio (GAAP) 72.00 % 74.36 % 71.96 % 78.38 % Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP)) 72.15 % 75.32 % 72.74 % 78.91 % (1) The tax equivalent adjustment is based upon a 21% tax rate. Liquidity and Capital Resources. The term “liquidity” refers to our ability to generate adequate amounts of cash to fund loan originations, loan purchases, deposit withdrawals and operating expenses. Our primary sources of liquidity are deposits, scheduled amortization and prepayments of loan principal and mortgage-backed securities, maturities, and calls of investment securities and funds provided by our operations. We also can borrow funds from the FHLB and the FRB based on eligible collateral of loans and securities. Our material cash commitments include funding loan originations, fulfilling contractual obligations with third-party service providers, maintaining operating leases for certain of our Bank properties and satisfying repayment of our long-term debt obligations. 60 Primary Sources of Liquidity The Company, on an ongoing basis, closely monitors the Company’s liquidity position for compliance with internal policies, and believes that available sources of liquidity are adequate to meet funding needs in the normal course of business. As part of that monitoring process, the Company stresses the potential liabilities calculation to ensure a strong liquidity position. Included in the calculation are assumptions of some significant deposit run-off as well as funds needed for loan closing and investment purchases. The Company does not anticipate engaging in any activities, either currently or over the long-term, for which adequate funding would not be available and which would therefore result in significant pressure on liquidity. However, an economic recession could negatively impact the Company’s liquidity. The Bank relies heavily on FHLB as a source of funds, particularly with its overnight line of credit. In past economic recessions, some FHLB branches have suspended dividends, cut dividend payments, and not bought back excess FHLB stock that members hold in an effort to conserve capital. FHLB has stated that it expects to be able to continue to pay dividends, redeem excess capital stock, and provide competitively priced advances in the future. At June 30, 2026 and December 31, 2025, outstanding borrowings from the FHLB were $38.5 million and $83.0 million, respectively. At June 30, 2026, the Company had $547.5 million in available borrowing capacity with the FHLB, including the $9.5 million Ideal Way Line of Credit. The Company has the ability to increase its borrowing capacity with the FHLB by pledging additional investment securities or loans. The Company has an available line of credit of $392.7 million with the FRB Discount Window at an interest rate determined and reset on a daily basis. Borrowings from the FRB Discount Window are secured by certain eligible loan collateral and securities from the Company’s investment portfolio not otherwise pledged. As of June 30, 2026 and December 31, 2025, there were no advances outstanding under either of these lines. In addition, the Company has available lines of credit of $15.0 million and $10.0 million with two correspondent banks. Interest rates on these lines are determined and reset on a daily basis by each respective bank. At June 30, 2026 and December 31, 2025, the Company did not have an outstanding balance under either of these lines of credit. In addition, the Company may enter into reverse repurchase agreements with approved broker-dealers which would allow the Company to borrow money by pledging securities as collateral. The Company also has outstanding, at any time, a significant number of commitments to extend credit and provide financial guarantees to third parties. These arrangements are subject to strict credit control assessments. Guarantees specify limits to our obligations. Since many commitments and almost all guarantees expire without being funded in whole or in part, the contract amounts are not estimates of future cash flows. The Company is also obligated under agreements with the FHLB to repay borrowed funds and is obligated under leases for certain branches, ATMs and equipment. Maturing investment securities are a relatively predictable source of funds. However, deposit flows, calls of securities and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and local economic conditions, and competition in the marketplace. These factors reduce the predictability of the timing of these sources of funds. The Company’s primary activities are the origination of commercial real estate loans, commercial and industrial loans, and residential real estate loans, as well as and the purchase of mortgage-backed and other investment securities. At June 30, 2026, the Company had approximately $163.5 million in loan commitments and letters of credit to borrowers and approximately $343.7 million in available home equity and other unadvanced lines of credit. Deposit inflows and outflows are affected by the level of interest rates, the products and interest rates offered by competitors and by other factors. At June 30, 2026, time deposit accounts scheduled to mature within one year totaled $715.1 million, or 97.2% of total time deposits. Based on the Company’s deposit retention experience and current pricing strategy, we anticipate that a significant portion of these time deposits will remain on deposit. We monitor our liquidity position frequently and anticipate that it will have sufficient funds to meet our current funding commitments for the next 12 months and beyond. 61 Material Cash Commitments The Company entered into a long-term contractual obligation with a vendor for use of its core provider and ancillary services beginning in 2016. Total remaining contractual obligations outstanding with this vendor as of June 30, 2026 were estimated to be $21.7 million, with $5.0 expected to be paid within one year, and the remaining $16.7 million to be paid within the next four years. Further, the Company has operating leases for certain of its banking offices and ATMs. Our leases have remaining lease terms of less than one year to twelve years, some of which include options to extend the leases for additional five-year terms up to ten years. At June 30, 2026, undiscounted lease liabilities totaled $8.2 million. Principal payments expected to be made on our lease liabilities during the twelve months ended June 30, 2027 totaled $1.5 million. The remaining lease liability payments totaled $6.7 million and are expected to be made after June 30, 2027. On April 20, 2021, the Company issued and sold $20.0 million in aggregate principal amount of its 4.875% Fixed-to-Floating Rate Notes to certain qualified institutional buyers in a private placement transaction. The Notes mature on May 1, 2031 (“Maturity Date”) and were designed to qualify as Tier 2 capital under the Federal Reserve’s capital adequacy regulations. At June 30, 2026, $19.8 million aggregate principal amount of the Notes was outstanding. From the issuance date through April 30, 2026, the Notes bore interest at a fixed interest rate of 4.875% per annum. Beginning on May 1, 2026, the Notes bear interest at a floating rate equal to the 90-day average SOFR, plus 412 basis points, payable quarterly in arrears. The Company has the ability to call the Notes, in whole, or in part, at a redemption price equal to 100% of the principal amount at certain times on or after May 1, 2026, and at any time upon the occurrence of certain events, subject in each case to the approval of the Federal Reserve. As of June 30, 2026, the Company has not redeemed any portion of the Notes. At June 30, 2026, the Company exceeded each of the applicable regulatory capital requirements to be considered “well-capitalized”. As of June 30, 2026, the Bank is considered “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes would change our category. Our actual capital ratios of June 30, 2026 and December 31, 2025 are also presented in the following table. Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2026 Total Capital (to Risk Weighted Assets): Consolidated $ 288,690 13.96 % $ 165,421 8.00 % N/A N/A Bank 278,058 13.47 165,133 8.00 $ 206,416 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 252,221 12.20 124,066 6.00 N/A N/A Bank 257,436 12.47 123,850 6.00 165,133 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 252,221 12.20 93,049 4.50 N/A N/A Bank 257,436 12.47 92,887 4.50 134,170 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 252,221 9.18 109,945 4.00 N/A N/A Bank 257,436 9.37 109,842 4.00 137,302 5.00 62 Actual Minimum For Capital Adequacy Purpose Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2025 Total Capital (to Risk Weighted Assets): Consolidated $ 291,864 14.19 % $ 164,584 8.00 % N/A N/A Bank 276,990 13.48 164,435 8.00 $ 205,544 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated 251,103 12.21 123,438 6.00 N/A N/A Bank 256,019 12.46 123,326 6.00 164,435 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets): Consolidated 251,103 12.21 92,578 4.50 N/A N/A Bank 256,019 12.46 92,495 4.50 133,603 6.50 Tier 1 Leverage Ratio (to Adjusted Average Assets): Consolidated 251,103 9.13 110,013 4.00 N/A N/A Bank 256,019 9.32 109,878 4.00 137,347 5.00 OFF-BALANCE SHEET ARRANGEMENTS. The Company does not have any off-balance sheet arrangements, other than noted above under Material Cash Commitments, that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors. ITEM