The following management’s discussion and analysis is presented to provide information concerning 1st Source Corporation and its subsidiaries’ (collectively referred to as “the Company”, “we”, and “our”) financial condition as of June 30, 2026, as compared to December 31, 2025, and the results of operations for the three and six months ended June 30, 2026, and 2025. This discussion and analysis should be read in conjunction with our consolidated financial statements and the financial and statistical data appearing elsewhere in this report and our 2025 Annual Report. Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “hope,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. We may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause our actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors include, but are not limited to, changes in law, regulations or GAAP; our competitive position within the markets we serve; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen changes in loan prepayment assumptions; unforeseen downturns in or major events affecting the local, regional or national economies or the industries in which we have credit concentrations; potential impacts of epidemics, pandemics or other infectious disease outbreaks; and other matters discussed in our filings with the SEC, including our Annual Report on Form 10-K for 2025, which filings are available from the SEC. We undertake no obligation to publicly update or revise any forward-looking statements. FINANCIAL CONDITION Our total assets at June 30, 2026, were $9.26 billion, an increase of $207.90 million or 2.30% from December 31, 2025. Total investment securities available-for-sale were $1.53 billion, an increase of $5.20 million or 0.34% from December 31, 2025. Federal funds sold and interest bearing deposits with other banks were $59.81 million, an increase of $9.20 million or 18.17% from December 31, 2025. The increase in federal funds sold and interest bearing deposits with other banks was due to higher interest bearing deposits at other banks. 33 Table of Contents Total loans and leases were $7.22 billion, an increase of $173.28 million or 2.46% from December 31, 2025. The largest contributors to the increase in loans and leases was growth in the renewable energy, commercial and agricultural, construction equipment, and commercial real estate portfolios, offset by decreases in the auto and light truck, aircraft, and consumer portfolios. Our foreign loan and lease balances, all denominated in U.S. dollars, were $305.31 million and $319.93 million as of June 30, 2026, and December 31, 2025, respectively. Foreign loans and leases are in aircraft financing. Loan and lease balances to borrowers in Brazil and Mexico were $139.15 million and $151.99 million as of June 30, 2026, respectively, compared to $136.98 million and $163.70 million as of December 31, 2025, respectively. As of June 30, 2026, and December 31, 2025, there was not a significant concentration in any other country. Equipment owned under operating leases was $5.62 million, a decrease of $1.35 million, or 19.33% compared to December 31, 2025. The largest contributors to the decrease in equipment owned under operating leases was reduced leasing volume primarily due to a change in customer preferences and continued competitive pricing pressure for new business. Total deposits were $7.43 billion at June 30, 2026, an increase of $206.67 million or 2.86% from December 31, 2025. Changes to the mix in total deposits included higher interest-bearing demand deposits, brokered deposits, time deposits, and savings deposits. Rate competition for deposits persisted during the second quarter across our footprint from various sources, including traditional bank and credit union competitors, money market funds, bond markets, and other non-bank alternatives. Short-term borrowings were $199.49 million, a decrease of $39.13 million or 16.40% from December 31, 2025, due primarily to a decrease in federal funds purchased. Long-term debt and mandatorily redeemable securities were $36.03 million, a decrease of $7.30 million or 16.86% from December 31, 2025, due primarily to the maturity of a $10.00 million long-term borrowing. Accrued expenses and other liabilities were $183.47 million, an increase of $12.58 million or 7.36% from December 31, 2025, mainly due to increased unfunded partnership commitments offset by decreased reserves for employee benefit plan contributions. The following table shows accrued income and other assets. (Dollars in thousands) June 30, 2026 December 31, 2025 Accrued income and other assets: Bank owned life insurance cash surrender value $ 88,914 $ 88,357 Operating lease right of use assets 22,568 20,130 Accrued interest receivable 34,653 35,539 Mortgage servicing rights 3,269 3,300 Other real estate 106 — Repossessions 2,291 267 Partnership investments carrying amount 152,787 120,260 Deferred tax assets 43,926 44,959 All other assets 31,554 39,109 Total accrued income and other assets $ 380,068 $ 351,921 The largest contributor to the increase in accrued income and other assets from December 31, 2025, was an increase in partnership investments. CAPITAL As of June 30, 2026, total shareholders’ equity was $1.31 billion, up $35.42 million, or 2.78% from the $1.27 billion at December 31, 2025. In addition to net income of $87.50 million, other significant changes in shareholders’ equity during the first six months of 2026 included $23.35 million in common stock repurchased and $20.18 million of dividends paid. The accumulated other comprehensive loss component of shareholders’ equity increased to $46.52 million at June 30, 2026, compared to $34.78 million at December 31, 2025, due to changes in interest rates, market spreads, and market conditions on our available-for-sale investment portfolio subsequent to purchase. Our shareholders’ equity-to-assets ratio was 14.15% as of June 30, 2026, compared to 14.08% at December 31, 2025. Book value per common share increased to $54.41 at June 30, 2026, from $52.32 at December 31, 2025, primarily due to increased retained earnings. We declared and paid cash dividends per common share of $0.43 during the second quarter of 2026. The trailing four quarters dividend payout ratio, representing cash dividends per common share divided by diluted earnings per common share, was 23.13%. The dividend payout is continually reviewed by management and the Board of Directors subject to the Company’s capital and dividend policy. The banking regulators have established guidelines for leverage capital requirements, expressed in terms of Tier 1 or core capital as a percentage of average assets, to measure the soundness of a financial institution. In addition, banking regulators have established risk-based capital guidelines for U.S. banking organizations. 34 Table of Contents The actual capital amounts and ratios of 1st Source Corporation and 1st Source Bank as of June 30, 2026, remained at their historically strong and conservative levels and are presented in the table below. Actual Minimum Capital Adequacy Minimum Capital Adequacy with Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets): 1st Source Corporation $ 1,481,236 17.96 % $ 659,894 8.00 % $ 866,110 10.50 % $ 824,867 10.00 % 1st Source Bank 1,370,259 16.62 659,683 8.00 865,834 10.50 824,604 10.00 Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 1,377,237 16.70 494,920 6.00 701,137 8.50 659,894 8.00 1st Source Bank 1,266,293 15.36 494,762 6.00 700,913 8.50 659,683 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 1,277,445 15.49 371,190 4.50 577,407 7.00 536,163 6.50 1st Source Bank 1,223,501 14.84 371,072 4.50 577,223 7.00 535,993 6.50 Tier 1 Capital (to Average Assets): 1st Source Corporation 1,377,237 14.92 369,252 4.00 N/A N/A 461,565 5.00 1st Source Bank 1,266,293 13.72 369,130 4.00 N/A N/A 461,413 5.00 LIQUIDITY AND INTEREST RATE SENSITIVITY Effective liquidity management ensures that the cash flow requirements of depositors and borrowers, as well as our operating cash needs are met. Funds are available from a number of sources, including the securities portfolio, the core deposit base, access to the national brokered certificates of deposit market, national listing service certificates of deposit, Federal Home Loan Bank (FHLB) borrowings, Federal Reserve Bank (FRB) borrowings, and the capability to package loans for sale. We maintain prudent strategies to support a strong liquidity position. The following table represents our sources of liquidity as of June 30, 2026. (Dollars in thousands) Available Internal Sources Unencumbered securities $ 1,231,327 External Sources FHLB advances(1) 450,220 FRB borrowings 433,488 Fed funds purchased(2) 510,000 Brokered deposits(3) 628,942 Listing services deposits(3) 461,708 Total liquidity $ 3,715,685 % of Total deposits net brokered and listing services certificates of deposit 52.08 % (1) Availability is shown net of required stock purchases under the FHLB activity-based stock ownership requirement, which is currently 4.50%, and may vary (2) Availability contingent on correspondent bank approvals at time of borrowing (3) Availability contingent on internal borrowing guidelines External sources as listed in the table above are managed to approved guidelines by our Board of Directors. Total net available liquidity was $3.72 billion at June 30, 2026, which accounted for approximately 52% of total deposits net of brokered and listing services certificates of deposit. Our loan to asset ratio was 77.94% at June 30, 2026, compared to 77.82% at December 31, 2025 and 78.11% at June 30, 2025. Cash and cash equivalents totaled $127.30 million at June 30, 2026, compared to $119.86 million at December 31, 2025 and $149.11 million at June 30, 2025. The increase in cash and cash equivalents for the six month period ended June 30, 2026 was primarily due to an increase in deposits. The decrease in cash and cash equivalents compared to June 30, 2025, was primarily due to funding loan growth and purchases of investment securities available-for-sale. Management believes that the present funding sources provide adequate liquidity to meet our cash flow needs. At June 30, 2026, the Consolidated Statements of Financial Condition was rate sensitive by $175.37 million more liabilities than assets scheduled to reprice within one year, or approximately 0.96%. Management evaluates interest rate risk using multiple measures and analytical techniques, as each provides a different perspective on the Bank's exposure to changes in interest rates. 35 Table of Contents Under Indiana law governing the collateralization of public fund deposits, the Indiana Board of Depositories determines which financial institutions are required to pledge collateral based on the strength of their financial ratings. We have been informed that no collateral is required for our public fund deposits. However, the Board of Depositories could alter this requirement in the future and adversely impact our liquidity. Our potential liquidity exposure if we must pledge collateral is approximately $1.54 billion. RESULTS OF OPERATIONS Net income available to common shareholders for the three and six month periods ended June 30, 2026, was $47.54 million and $87.50 million compared to $37.32 million and $74.84 million for the same periods in 2025. Diluted net income per common share was $1.95 and $3.58 for the three and six month periods ended June 30, 2026, compared to $1.51 and $3.02 earned for the same periods in 2025. Return on average common shareholders’ equity was 13.61% for the six months ended June 30, 2026, compared to 12.96% in 2025. The return on total average assets was 1.93% for the six months ended June 30, 2026, compared to 1.69% in 2025. Net income increased for the six months ended June 30, 2026, compared to the first six months of 2025. Net interest income and noninterest income increased and the provision for credit losses decreased offset partially by an increase in noninterest expense. Details of the changes in the various components of net income are discussed further below. 36 Table of Contents NET INTEREST INCOME The following tables provide an analysis of net interest income and illustrates the interest income earned and interest expense charged for each major component of interest earning assets and interest bearing liabilities. Yields/rates are computed on a tax-equivalent basis, using a 21% rate. Nonaccrual loans and leases are included in the average loan and lease balance outstanding. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY INTEREST RATES AND INTEREST DIFFERENTIAL Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 (Dollars in thousands) Average Balance Interest Income/Expense Yield/ Rate Average Balance Interest Income/Expense Yield/ Rate Average Balance Interest Income/Expense Yield/ Rate ASSETS Investment securities available-for-sale: Taxable $ 1,496,209 $ 12,402 3.32 % $ 1,493,065 $ 11,704 3.18 % $ 1,444,203 $ 8,602 2.39 % Tax exempt(1) 32,962 384 4.67 % 34,005 387 4.62 % 32,418 375 4.64 % Mortgages held for sale 4,116 63 6.14 % 4,930 75 6.17 % 3,385 55 6.52 % Loans and leases, net of unearned discount(1) 7,142,693 116,825 6.56 % 7,022,759 113,423 6.55 % 6,968,463 117,250 6.75 % Other investments 153,723 1,561 4.07 % 63,852 699 4.44 % 95,469 1,087 4.57 % Total earning assets(1) 8,829,703 131,235 5.96 % 8,618,611 126,288 5.94 % 8,543,938 127,369 5.98 % Cash and due from banks 59,208 57,339 67,535 Allowance for loan and lease losses (166,429) (163,666) (159,418) Other assets 523,625 508,021 510,079 Total assets $ 9,246,107 $ 9,020,305 $ 8,962,134 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing deposits $ 5,848,085 $ 34,465 2.36 % $ 5,605,444 $ 32,578 2.36 % $ 5,774,752 $ 39,106 2.72 % Short-term borrowings: Securities sold under agreements to repurchase 64,030 137 0.86 % 53,514 91 0.69 % 60,863 121 0.80 % Other short-term borrowings 142,875 1,370 3.85 % 173,524 1,629 3.81 % 61,917 688 4.46 % Subordinated notes 58,764 971 6.63 % 58,764 995 6.87 % 58,764 1,007 6.87 % Long-term debt and mandatorily redeemable securities 35,520 996 11.25 % 39,521 702 7.20 % 41,328 1,102 10.70 % Total interest-bearing liabilities 6,149,274 37,939 2.47 % 5,930,767 35,995 2.46 % 5,997,624 42,024 2.81 % Noninterest-bearing deposits 1,579,517 1,586,125 1,574,332 Other liabilities 173,756 167,427 144,057 Shareholders’ equity 1,300,695 1,292,902 1,187,076 Noncontrolling interests 42,865 43,084 59,045 Total liabilities and equity $ 9,246,107 $ 9,020,305 $ 8,962,134 Less: Fully tax-equivalent adjustments (154) (155) (153) Net interest income/margin (GAAP-derived)(1) $ 93,142 4.23 % $ 90,138 4.24 % $ 85,192 4.00 % Fully tax-equivalent adjustments 154 155 153 Net interest income/margin - FTE(1) $ 93,296 4.24 % $ 90,293 4.25 % $ 85,345 4.01 % (1) See “Reconciliation of Non-GAAP Financial Measures” at the end of this section for additional information on this performance measure/ratio. Quarter Ended June 30, 2026, compared to the Quarter Ended June 30, 2025 The taxable-equivalent net interest income for the three months ended June 30, 2026, was $93.30 million, an increase of 9.32% over the same period in 2025. The net interest margin on a fully taxable-equivalent basis was 4.24% for the three months ended June 30, 2026, compared to 4.01% for the three months ended June 30, 2025. During the three month period ended June 30, 2026, average earning assets increased $285.77 million, up 3.34% over the comparable period in 2025. Average interest-bearing liabilities increased $151.65 million or 2.53%. The yield on average earning assets decreased to 5.96% at June 30, 2026, down two basis points from the same period in the prior year. Total cost of average interest-bearing liabilities decreased 34 basis points to 2.47% from 2.81%, primarily as a result of lower rates on interest-bearing deposits offset by increased short-term borrowing costs. The result to the tax-equivalent net interest margin, or the ratio of tax-equivalent net interest income to average earning assets, was an increase of 23 basis points. 37 Table of Contents The largest contributors to the reduced yield on average earning assets for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was a decrease in yields on net loans and leases mainly from Federal Reserve rate cuts during the second half of 2025 and lower rates on other investments, which include federal funds sold, time deposits with other banks, Federal Reserve Bank excess balances, Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock and commercial paper offset by improved yields on investments from portfolio repositioning trades executed during 2025. The yield on loans and leases decreased 19 basis points, mainly from Fed rate cuts during the second half of 2025. Average loans and leases increased $174.23 million or 2.50%, primarily in the renewable energy, commercial real estate, residential real estate and home equity, construction equipment, and commercial and agricultural portfolios. Net interest recoveries contributed three basis points to the yield on average loans and leases during the quarter and had no impact to the average loans and leases yield during the prior year second quarter. Average investment securities increased $52.55 million or 3.56%, driven by additional investments made during the period. Average other investments, primarily held at the Federal Reserve Bank, increased $58.25 million or 61.02%. Average interest-bearing deposits increased $73.33 million or 1.27% for the second quarter of 2026 over the same period in 2025 primarily from higher savings deposits, interest-bearing demand deposits, and time deposits, offset by a decrease in brokered deposits. The effective rate on average interest-bearing deposits decreased 36 basis points to 2.36% from 2.72%, primarily as a result of Fed rate cuts during 2025 and lower brokered deposit balances. Average noninterest-bearing deposits increased $5.19 million or 0.33% for the second quarter of 2026 over the same period in 2025. Average short-term borrowings increased $84.13 million or 68.52% for the second quarter of 2026, compared to the same period in 2025. Interest on short-term borrowings increased 28 basis points primarily due to the increase in average balances in FHLB borrowings. Interest on subordinated notes decreased 24 basis points during the second quarter of 2026 from the same period a year ago due to a variable rate decrease on one tranche. Average long-term debt and mandatorily redeemable securities balances decreased $5.81 million or 14.05% mainly from the maturity of a $10.00 million long-term borrowing. Interest on long-term debt and mandatorily redeemable securities increased 55 basis points during the second quarter of 2026 from the same period in 2025, primarily from an increase in mandatorily redeemable securities average balances. Mandatorily redeemable securities are issued under the terms of one of our executive incentive compensation plans and are settled based on book value per share with changes from the previous reporting date recorded as interest expense. 38 Table of Contents Six Months Ended June 30, 2026 June 30, 2025 (Dollars in thousands) Average Balance Interest Income/Expense Yield/ Rate Average Balance Interest Income/Expense Yield/ Rate ASSETS Investment securities available-for-sale: Taxable $ 1,494,645 $ 24,106 3.25 % $ 1,465,984 $ 16,755 2.30 % Tax exempt(1) 33,481 771 4.64 % 31,798 724 4.59 % Mortgages held for sale 4,521 138 6.16 % 2,899 94 6.54 % Loans and leases, net of unearned discount(1) 7,083,058 230,248 6.56 % 6,884,176 230,846 6.76 % Other investments 109,036 2,260 4.18 % 104,808 2,401 4.62 % Total earning assets(1) 8,724,741 257,523 5.95 % 8,489,665 250,820 5.96 % Cash and due from banks 58,279 65,782 Allowance for loan and lease losses (165,055) (158,374) Other assets 515,865 512,426 Total assets $ 9,133,830 $ 8,909,499 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing deposits $ 5,727,434 $ 67,043 2.36 % $ 5,760,025 $ 78,952 2.76 % Short-term borrowings: Securities sold under agreements to repurchase 58,801 228 0.78 % 59,555 225 0.76 % Other short-term borrowings 158,115 2,999 3.82 % 40,304 816 4.08 % Subordinated notes 58,764 1,966 6.75 % 58,764 2,021 6.94 % Long-term debt and mandatorily redeemable securities 37,509 1,698 9.13 % 40,506 2,376 11.83 % Total interest-bearing liabilities 6,040,623 73,934 2.47 % 5,959,154 84,390 2.86 % Noninterest-bearing deposits 1,582,803 1,581,331 Other liabilities 170,610 141,731 Shareholders’ equity 1,296,820 1,164,624 Noncontrolling interests 42,974 62,659 Total liabilities and equity $ 9,133,830 $ 8,909,499 Less: Fully tax-equivalent adjustments (309) (300) Net interest income/margin (GAAP-derived)(1) $ 183,280 4.24 % $ 166,130 3.95 % Fully tax-equivalent adjustments 309 300 Net interest income/margin - FTE(1) $ 183,589 4.24 % $ 166,430 3.95 % (1) See “Reconciliation of Non-GAAP Financial Measures” at the end of this section for additional information on this performance measure/ratio. Six Months Ended June 30, 2026, compared to the Six Months Ended June 30, 2025 The taxable-equivalent net interest income for the six months ended June 30, 2026, was $183.59 million, an increase of 10.31% over the same period in 2025. The net interest margin on a fully taxable-equivalent basis was 4.24% for the six months ended June 30, 2026, compared to 3.95% for the same period in 2025. During the six month period ended June 30, 2026, average earning assets increased $235.08 million, up 2.77% over the comparable period in 2025. Average interest-bearing liabilities increased $81.47 million or 1.37%. The yield on average earning assets decreased one basis point to 5.95% from 5.96% primarily due to lower rates on loans and leases, and other investments, which include federal funds sold, time deposits with other banks, Federal Reserve Bank excess balances, Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock and commercial paper. Total cost of average interest-bearing liabilities decreased 39 basis points to 2.47% from 2.86% as a result of lower rates on interest-bearing deposits offset by increased short-term borrowing costs. The result to the net interest margin, or the ratio of net interest income to average earning assets, was a net 29 basis point improvement. The largest contributors to the declined yield on average earning assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was a decrease in yields on loans and leases, and other investments offset by improved yields on investments from portfolio repositioning trades executed during 2025. Average loans and leases increased $198.88 million, up 2.89%. Average investment securities increased $30.34 million or 2.03% driven by additional investments made during the period. Average interest-bearing deposits decreased $32.59 million or 0.57% for the first six months of 2026 compared to the same period in 2025, primarily due to decreased brokered deposit balances. The effective rate paid on average interest-bearing deposits decreased 40 basis points to 2.36% from 2.76% mainly from Fed rate cuts during the second half of 2025 and lower brokered deposit average balances. 39 Table of Contents Average short-term borrowings increased $117.06 million or 117.22% for the first six months of 2026, compared to the same period in 2025. Interest paid on short-term borrowings increased 90 basis points primarily due to an increase in average balances in FHLB borrowings and federal funds purchased. Interest paid on subordinated notes decreased 19 basis points during the first six months due to a variable rate decrease on one tranche. Average long-term debt and mandatorily redeemable securities balances decreased $3.00 million or 7.40%, primarily from the maturity of a $10.00 million long term borrowing. Interest paid on long-term debt and mandatorily redeemable securities decreased 270 basis points due to lower imputed interest on mandatorily redeemable securities from a smaller increase in book value per share during 2026. Mandatorily redeemable securities are issued under the terms of one of our executive incentive compensation plans and are settled based on book value per share with changes from the previous reporting date recorded as interest expense. Reconciliation of Non-GAAP Financial Measures The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components) and net interest margin (including its individual components). Management believes that these measures provide users of the Company’s financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities. Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (Dollars in thousands) 2026 2026 2025 2026 2025 Calculation of Net Interest Margin (A) Interest income (GAAP) $ 131,081 $ 126,133 $ 127,216 $ 257,214 $ 250,520 Fully tax-equivalent adjustments: (B) - Loans and leases 74 75 75 149 150 (C) - Tax-exempt investment securities 80 80 78 160 150 (D) Interest income - FTE (A+B+C) 131,235 126,288 127,369 257,523 250,820 (E) Interest expense (GAAP) 37,939 35,995 42,024 73,934 84,390 (F) Net interest income (GAAP) (A–E) 93,142 90,138 85,192 183,280 166,130 (G) Net interest income - FTE (D–E) 93,296 90,293 85,345 183,589 166,430 (H) Annualization factor 4.011 4.056 4.011 2.017 2.017 (I) Total earning assets $ 8,829,703 $ 8,618,611 $ 8,543,938 $ 8,724,741 $ 8,489,665 Net interest margin (GAAP-derived) (F*H)/I 4.23 % 4.24 % 4.00 % 4.24 % 3.95 % Net interest margin - FTE (G*H)/I 4.24 % 4.25 % 4.01 % 4.24 % 3.95 % PROVISION AND ALLOWANCE FOR CREDIT LOSSES The provision for credit losses for the three and six months ended June 30, 2026, was $1.54 million and $8.81 million, compared to $7.69 million and $10.96 million during the three and six months ended June 30, 2025. Net charge-offs of $0.52 million or 0.03% of average loans and leases were recorded for the second quarter of 2026, compared to $1.87 million or 0.11% of average loans and leases for the same quarter a year ago. Year-to-date net charge-offs of $4.48 million or 0.13% of average loans and leases have been recorded in 2026, compared to net charge-offs of $2.05 million or 0.06% of average loans and leases through June 30, 2025. Net charge-offs recognized in 2026 are principally concentrated in the auto and light truck, construction equipment, and consumer portfolios offset by modest net recoveries in the commercial and agricultural portfolio. The provision for credit losses for the three months ended June 30, 2026, was driven primarily by loan growth in our construction equipment, commercial and agricultural, and renewable energy portfolios during the period. We maintained our forecast adjustment as the prior quarter’s assumptions continue to be applicable to the forecast outlook. Key risks include heightened global geopolitical uncertainty, volatile energy prices, firming inflationary expectations, ever-changing trade policies, and overall macroeconomic uncertainty. Reserves for assets individually evaluated total $1.60 million this quarter, consisting of accounts in our commercial and agricultural, auto and light truck, construction equipment, and commercial real estate portfolios. 40 Table of Contents We remain attentive to potential risks within the small business segment of the commercial and agricultural portfolio. Credit concerns are elevated for small business borrowers. The agricultural portion of this portfolio is under stress as grain producers struggle with higher input costs and low commodity prices. Within the auto and light truck portfolio, borrowers are contending with lower rental rates, higher fleet carrying costs, and industry overcapacity. The medium and heavy duty truck portfolio is emerging from a prolonged industry downturn as freight rates have improved with capacity reductions. However, overall freight demand remains soft. Consumer financial stress indicators remain elevated, economic imbalances persist, and overall consumer confidence remains subdued. The impact of volatile energy prices, should they persist, could result in a meaningful headwind across multiple portfolios. We continually evaluate risks that may impact our loan portfolios including an uncertain domestic and global economic outlook influenced by geopolitical instability, evolving trade policies, elevated interest rates, and ongoing efforts by the Federal Reserve to balance inflation and labor market conditions. While economic growth has remained generally resilient, downside risks persist and the operating environment remains fragile. Uncertainty is pervasive. Ongoing macroeconomic instability and higher interest rates may contribute to increased volatility in asset prices and place downward pressure on the values of collateral securing our loans. Our aircraft portfolio exhibits collateral concentration and contains $305.31 million of foreign exposure at June 30, 2026, the majority of which is in Mexico and Brazil. We regularly review political and economic conditions in these markets to assess potential impact on borrower performance. Credit quality in the aircraft portfolio remains stable, and we have experienced minimal credit losses in recent years. In the past, the portfolio has experienced periods of elevated and unanticipated losses, primarily driven by abrupt declines in collateral values coinciding with borrower financial stress. We review and assess aircraft values on an ongoing basis utilizing a tiered approach to establishing advance rates and amortization schedules to limit collateral exposure with continuous monitoring of individual borrower performance and overall portfolio trends. On June 30, 2026, 30 day and over loan and lease delinquency as a percentage of loan and lease balances was 0.09%, compared to 0.52% on June 30, 2025. The allowance for loan and lease losses as a percentage of loans and leases outstanding at the end of the period was 2.30%, compared to 2.30% one year ago. A summary of loan and lease loss experience during the three and six months ended June 30, 2026, and 2025 is located in Note 5 of the Consolidated Financial Statements. NONPERFORMING ASSETS The following table shows nonperforming assets. (Dollars in thousands) June 30, 2026 December 31, 2025 June 30, 2025 Loans and leases past due 90 days or more and accruing $ 996 $ 460 $ 198 Nonaccrual loans and leases 69,682 76,602 71,732 Other real estate 106 — — Repossessions 2,291 267 3,549 Equipment owned under operating leases 43 49 62 Total nonperforming assets $ 73,118 $ 77,378 $ 75,541 Nonperforming assets to loans and leases, net of unearned discount 1.01 % 1.10 % 1.06 % Nonperforming assets totaled $73.12 million at June 30, 2026, a decrease of 5.51% from the $77.38 million reported at December 31, 2025, and a 3.21% decrease from the $75.54 million reported at June 30, 2025. The decrease in nonperforming assets during the first six months of 2026 was primarily related to lower nonaccrual loans and leases partially offset by an increase in repossessions. The decrease in nonperforming assets as of June 30, 2026, from June 30, 2025, was related to decreases in nonaccrual loans and leases and repossessions. There are three properties held in other real estate related to our residential real estate and home equity portfolio as of June 30, 2026. The decrease in nonaccrual loans and leases at June 30, 2026, from December 31, 2025, was predominantly related to defleeting activity and charge-offs in our auto and light truck portfolio and payoffs in the construction equipment portfolio during the period. A summary of nonaccrual loans and leases and past due aging for the periods ended June 30, 2026, and December 31, 2025, is located in Note 4 of the Consolidated Financial Statements. Repossessions consisted primarily of one loan relationship in the aircraft portfolio, coupled with minimal amounts in our commercial and agricultural and consumer portfolios at June 30, 2026. At the time of repossession, the recorded amount of the loan or lease is written down to the fair value of the equipment or vehicle by a charge to the allowance for loan and lease losses or other income, if a positive adjustment, unless the equipment is in the process of immediate sale. Any subsequent fair value write-downs or write-ups, to the extent of previous write-downs, are included in noninterest expense. 41 Table of Contents The following table shows a summary of repossessions and other real estate. (Dollars in thousands) June 30, 2026 December 31, 2025 June 30, 2025 Commercial and agricultural $ 48 $ 21 $ — Renewable energy — — — Auto and light truck — — 134 Medium and heavy duty truck — — — Aircraft 2,210 — 900 Construction equipment — 192 2,504 Commercial real estate — — — Residential real estate and home equity 106 — — Consumer 33 54 11 Total $ 2,397 $ 267 $ 3,549 For financial statement purposes, nonaccrual loans and leases are included in loan and lease outstandings, whereas repossessions and other real estate are included in other assets. NONINTEREST INCOME The following table shows the details of noninterest income. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2026 2025 $ Change % Change 2026 2025 $ Change % Change Noninterest income: Trust and wealth advisory $ 8,692 $ 7,266 $ 1,426 19.63 % $ 15,710 $ 13,932 $ 1,778 12.76 % Service charges on deposit accounts 3,432 3,189 243 7.62 % 6,786 6,260 526 8.40 % Debit card 4,734 4,567 167 3.66 % 9,114 8,716 398 4.57 % Mortgage banking 858 1,116 (258) (23.12) % 1,869 1,969 (100) (5.08) % Insurance commissions 1,791 1,685 106 6.29 % 4,302 4,125 177 4.29 % Equipment rental 540 779 (239) (30.68) % 1,129 1,678 (549) (32.72) % Gains (losses) on investment securities available-for-sale 13 (997) 1,010 101.30 % 13 (997) 1,010 101.30 % Other 4,959 5,452 (493) (9.04) % 9,097 10,477 (1,380) (13.17) % Total noninterest income $ 25,019 $ 23,057 $ 1,962 8.51 % $ 48,020 $ 46,160 $ 1,860 4.03 % Trust and wealth advisory fees (which include investment management fees, estate administration fees, mutual fund fees, annuity fees, and fiduciary fees) increased during the three and six months ended June 30, 2026, compared with the same periods a year ago. Trust and wealth advisory fees are largely based on the number and size of client relationships and the market value of assets under management. The market value of trust assets under management at June 30, 2026, December 31, 2025, and June 30, 2025, was $6.60 billion, $6.28 billion, and $5.94 billion, respectively. The increase in trust and wealth advisory fees included larger than usual estate administration fees primarily from one customer account in the process of settlement during the three months ended June 30, 2026. Service charges on deposit accounts increased for the three and six months ended June 30, 2026, compared to the same periods in 2025. The increase in service charges on deposit accounts was mainly the result of higher consumer nonsufficient fund and overdraft transactions. Debit card income increased for both the three and six month periods ended June 30, 2026, compared to the same periods in the prior year. This growth was driven primarily by higher transaction and spending volumes, supported by consistent client transaction behavior and merchant network routing patterns. Mortgage banking income decreased for the three and six months ended June 30, 2026, over the comparable periods in 2025. The decrease was mainly from lower gains on loan sales due to reduced profit margins as well as a reduction in loan servicing fee income. Insurance commissions increased during the three and six months ended June 30, 2026, compared to the same periods a year ago. The increases were mainly due to higher contingent commissions received. Equipment rental income decreased for the three and six months ended June 30, 2026, over the comparable periods in 2025. The decline was the result of a reduction in the average equipment rental portfolio by 34.58% over the same six month period a year ago, due to changing customer preferences and competitive pricing pressures for new business. 42 Table of Contents Gains on available-for-sale investment securities during 2026 primarily resulted from active portfolio management activities, including the sale of a $0.79 million municipal bond that had been downgraded. While the security remained investment grade and was further supported by insurance enhancement, the sale of the bond was a proactive measure to reduce exposure to potential future credit downgrades. Losses on investment securities available-for-sale during 2025 were exclusively the result of repositioning the portfolio during the second quarter. Other income decreased for the three and six months ended June 30, 2026, compared to the same periods in 2025. The decrease was primarily the result of lower partnership investment gains partially offset by increased brokerage commissions and fees. NONINTEREST EXPENSE The following table shows the details of noninterest expense. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2026 2025 $ Change % Change 2026 2025 $ Change % Change Noninterest expense: Salaries and employee benefits $ 33,152 $ 31,800 $ 1,352 4.25 % $ 65,973 $ 63,915 $ 2,058 3.22 % Net occupancy 3,387 3,035 352 11.60 % 6,935 6,259 676 10.80 % Furniture and equipment 1,665 1,684 (19) (1.13) % 3,127 3,031 96 3.17 % Data processing 7,492 7,410 82 1.11 % 15,065 14,701 364 2.48 % Depreciation – leased equipment 423 619 (196) (31.66) % 877 1,337 (460) (34.41) % Professional fees 2,152 1,499 653 43.56 % 3,727 3,167 560 17.68 % FDIC and other insurance 1,454 1,438 16 1.11 % 2,903 2,878 25 0.87 % Business development and marketing 2,064 1,884 180 9.55 % 3,967 3,809 158 4.15 % Other 3,236 3,061 175 5.72 % 6,968 6,409 559 8.72 % Total noninterest expense $ 55,025 $ 52,430 $ 2,595 4.95 % $ 109,542 $ 105,506 $ 4,036 3.83 % Salaries and employee benefits increased during the three and six months ended June 30, 2026, compared to the same periods in 2025. Higher salaries and employee benefits were a result of normal merit increases, increased incentive compensation, as well as higher group insurance costs as a result of overall higher health insurance claims, and increased employee benefit plan contributions. Net occupancy expense increased during the three and six months ended June 30, 2026, compared to the same periods in 2025. The increase was primarily due to increased snow removal costs from seasonal weather conditions during the first quarter and higher premises expenses and repairs. Furniture and equipment expense, including depreciation, was relatively flat during the second quarter of 2026, compared to the same period in 2025, and increased year to date compared to the same time period a year ago. The increase was mainly due to higher equipment depreciation and equipment repairs partially offset by a decrease in equipment maintenance. Data processing expense grew during the three and six months ended June 30, 2026, compared to the same periods a year ago due primarily to increased software maintenance expense on technology projects. Depreciation on leased equipment decreased for the three and six months ended June 30, 2026, compared to the same periods in 2025. Depreciation on leased equipment correlates with the decrease in equipment rental income. Professional fees were higher during the three and six months ended June 30, 2026, compared to the same periods a year ago due primarily to higher legal and professional consulting fees. FDIC and other insurance remained flat during the three and six months ended June 30, 2026, compared to the same periods in 2025. Business development and marketing expense increased during the three and six months ended June 30, 2026, compared with the same periods in 2025. The increase was primarily due to an increase in marketing promotions offset by lower business development and travel expenses. Other expenses were higher during the three and six months ended June 30, 2026, compared to the same periods a year ago. The increase was primarily the result of higher collection and repossession expenses and a rise in debit card and fraud losses offset by increased gains on the sale of repossessed assets. 43 Table of Contents INCOME TAXES The provision for income taxes for the three and six month periods ended June 30, 2026, was $14.06 million and $25.44 million compared to $10.80 million and $20.98 million for the same periods in 2025. The effective tax rate was 22.82% and 22.45% for the quarters ended June 30, 2026, and 2025, respectively, and 22.53% and 21.89% for the six months ended June 30, 2026, and 2025, respectively. The increase in the year-to-date effective tax rate was due to a one-time $0.74 million after-tax interest payment on federal tax refunds from tax credit carrybacks recorded in the first quarter of 2025.