​ SmartFinancial, Inc. (the “Company,” “SmartFinancial,” “we,” “our” or “us”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in East and Middle Tennessee, Alabama, and Florida. The Bank’s primary deposit products are noninterest-bearing and interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans. While we offer a wide range of commercial banking services, we focus on making loans secured primarily by commercial real estate and other types of secured and unsecured commercial loans to small and medium-sized businesses in a number of industries, as well as loans to individuals for a variety of purposes. Our principal sources of funds for loans and investing in securities are deposits and, to a lesser extent, borrowings. We offer a broad range of deposit products, including checking (“NOW”), savings, money market accounts and time deposits. We actively pursue business relationships by utilizing the business contacts of our senior management, other bank officers and our directors, thereby capitalizing on our knowledge of our local market areas. Forward-Looking Statement The Company may from time to time make written or oral statements, including statements contained in this Quarterly Report on Form 10-Q (this “report”) and information incorporated by reference herein (including, without limitation, certain statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2), that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are based on assumptions and estimates and are not guarantees of future performance. Any statements that do not relate to historical or current facts or matters are forward-looking statements. You can identify some of the forward-looking statements by the use of forward-looking words (and their derivatives), such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “continue,” “potential,” “plan,” “forecast,” and the like, the negatives of such expressions, or the use of the future tense. Statements concerning current conditions may also be forward-looking if they imply a continuation of a current condition. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, financial condition, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: ● general economic and business conditions in our local markets (particularly Tennessee), including conditions affecting employment levels, interest rates, inflation, supply chains, the threat of recession, volatile equity capital markets, property and casualty insurance costs, collateral values, customer income, creditworthiness and confidence, spending and savings that may affect customer bankruptcies, defaults, charge-offs and deposit activity; and the impact of the foregoing on customer and client behavior (including the velocity and levels of deposit withdrawals and loan repayment); ● the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities and market fluctuations, and interest rate sensitive assets and liabilities; ● the possibility that our asset quality would decline or that we experience greater loan and lease losses than anticipated; ● the impact of liquidity needs on our results of operations and financial condition; ● competition from financial institutions and other financial service providers; ● adverse developments in the banking industry highlighted by high-profile bank failures such as those in 2023, and the impact of such developments on customer confidence, liquidity and regulatory responses to such developments (including increases in the cost of our deposit insurance assessments and increased regulatory scrutiny), our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding; 44 Table of Contents ​ ● the impact of negative developments in the financial industry and U.S. and global capital and credit markets; ● the impact of recently enacted and future legislation and regulation on our business; ● the impact of recent or proposed changes in fiscal, monetary and economic policy, laws, and regulations, or the interpretation or application thereof, and the uncertainty of future implementation and enforcement of these policies and regulations, including persistent inflationary pressures, potential interest rate fluctuations, and potential changes to government policies related to immigration, trade, and government spending; ● weakness in the real estate market, including the secondary residential mortgage market, which can affect, among other things, the value of collateral securing mortgage loans, mortgage loan originations and delinquencies, profits on sales of mortgage loans, and the value of mortgage servicing rights; ● risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; ● claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; ● the risks of mergers, acquisitions and divestitures, including our ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; ● our ability to identify and address cybersecurity risks, such as cyber-attacks, computer viruses or other malware that may breach the security of our websites or other systems we operate or rely upon for services to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems and negatively impact our operations and our reputation in the market; ● results of examinations by our primary regulators, the TDFI, the Federal Reserve, and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, require us to reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; ● government intervention in the U.S. financial system and the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve, other legislative, tax and regulatory changes that impact the money supply and inflation, the imposition of tariffs and retaliatory responses, and the possibility that the U.S. could default on its debt obligations; ● our inability to pay dividends at current levels, or at all, because of inadequate future earnings, regulatory restrictions or limitations, and changes in the composition of qualifying regulatory capital and minimum capital requirements; ● the relatively greater credit risk of commercial real estate loans and construction and land development loans in our loan portfolio; ● our ability to maintain expenses in line with current projections; ● unanticipated credit deterioration in our loan portfolio or higher than expected loan and lease losses within one or more segments of our loan portfolio; ● unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; ● unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, natural disasters, acts of war or terrorism and other external events; ● changes in expected income tax expense or tax rates, including changes resulting from revisions in tax laws, regulations and case law; ● our ability to retain the services of key personnel; ● a deterioration in the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; ● political instability, acts of God, or of war or terrorism, natural disasters, including in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions; ● risks related to our corporate responsibility strategies and initiatives, the scope and pace of which could alter our reputation and shareholder, associate, customer and third-party affiliations; and ● risk and cost related to the development and use of artificial intelligence in our industry and generally; and 45 Table of Contents ​ ● the impact of Tennessee’s anti-takeover statutes and certain of our charter provisions on potential acquisitions of us. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Readers should not place undue reliance on forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements contained in this report, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise. Critical Accounting Estimates Our Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. The most significant accounting policies we follow are presented in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Application of these principles requires us to make estimates, assumptions, and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting policies are not considered by management to be critical accounting policies. Several factors are considered in determining whether or not a policy is critical in the preparation of the Consolidated Financial Statements. These factors include among other things, whether the policy requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. The accounting policies which we believe to be most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. During the quarter ending March 31, 2026, the Bank enhanced its ACL loss model for loans and leases. See Note 1. Recently Modified Accounting Policies and Allowance for Credit Losses in the Notes to our Consolidated Financial Statements in this Form 10-Q for further information related to these changes. There have been no other significant changes in the Company’s application of critical accounting policies since December 31, 2025. ​ Executive Summary The following is a summary of the Company’s financial highlights and significant events during the second quarter and first six months of 2026: ● Net income totaled $16.3 million, or $0.96 per diluted common share, during the second quarter of 2026 compared to $11.7 million, or $0.69 per diluted common share, for the same period in 2025. ● Net income totaled $30.0 million, or $1.77 per diluted common share, during the first six months of 2026 compared to $23.0 million, or $1.36 per diluted common share, for the same period in 2025. ● Annualized return on average assets for the three months ended June 30, 2026, and 2025 was 1.10% and 0.88%, respectively. ● Annualized return on average assets for the six months ended June 30, 2026, and 2025 was 1.03% and 0.87%, respectively. ● Organic loans and leases increased year-to-date for 2026, with loans and leases increasing $319.4 million from December 31, 2025. ● Deposit growth of $232.8 million from December 31, 2025. ​ ​ ​ ​ 46 Table of Contents ​ Selected Financial Information The following is a summary of certain financial information for the three and six month periods ended June 30, 2026 and 2025, and as of June 30, 2026, and December 31, 2025 (dollars in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ ​ ​ 2026 ​ ​ 2025 ​ ​ Change ​ 2026 ​ ​ 2025 ​ ​ Change ​ Income Statement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ $ 78,042 ​ ​ $ 69,453 ​ $ 8,589 ​ $ 152,312 ​ ​ $ 135,830 ​ $ 16,482 ​ Interest expense ​ ​ 29,978 ​ ​ ​ 29,110 ​ ​ 868 ​ ​ 58,371 ​ ​ ​ 57,248 ​ ​ 1,123 ​ Net interest income ​ ​ 48,064 ​ ​ ​ 40,343 ​ ​ 7,721 ​ ​ 93,941 ​ ​ ​ 78,582 ​ ​ 15,359 ​ Provision for credit losses ​ ​ 1,463 ​ ​ ​ 2,411 ​ ​ (948) ​ ​ 5,602 ​ ​ ​ 3,391 ​ ​ 2,211 ​ Net interest income after provision for credit losses ​ ​ 46,601 ​ ​ ​ 37,932 ​ ​ 8,669 ​ ​ 88,339 ​ ​ ​ 75,191 ​ ​ 13,148 ​ Noninterest income ​ ​ 7,886 ​ ​ ​ 8,898 ​ ​ (1,012) ​ ​ 15,827 ​ ​ ​ 17,495 ​ ​ (1,668) ​ Noninterest expense ​ ​ 33,955 ​ ​ ​ 32,569 ​ ​ 1,386 ​ ​ 66,871 ​ ​ ​ 64,866 ​ ​ 2,005 ​ Income before income taxes ​ ​ 20,532 ​ ​ ​ 14,261 ​ ​ 6,271 ​ ​ 37,295 ​ ​ ​ 27,820 ​ ​ 9,475 ​ Income tax expense ​ ​ 4,210 ​ ​ ​ 2,556 ​ ​ 1,654 ​ ​ 7,293 ​ ​ ​ 4,861 ​ ​ 2,432 ​ Net income ​ $ 16,322 ​ ​ $ 11,705 ​ $ 4,617 ​ $ 30,002 ​ ​ $ 22,959 ​ $ 7,043 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Per Share Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic income per common share ​ $ 0.97 ​ ​ $ 0.70 ​ $ 0.27 ​ $ 1.78 ​ ​ $ 1.37 ​ $ 0.41 ​ Diluted income per common share ​ $ 0.96 ​ ​ $ 0.69 ​ $ 0.27 ​ $ 1.77 ​ ​ $ 1.36 ​ $ 0.41 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average assets ​ ​ 1.10 % ​ ​ 0.88 % ​ 0.23 % ​ 1.03 % ​ ​ 0.87 % ​ 0.16 % Return on average shareholders' equity ​ ​ 11.46 % ​ ​ 9.19 % ​ 2.27 % ​ 10.69 % ​ ​ 9.18 % ​ 1.51 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ ​ ​ ​ 2026 ​ ​ 2025 ​ ​ Change Balance Sheet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans and leases, net ​ $ 4,637,683 ​ ​ $ 4,322,676 ​ $ 315,007 Deposits ​ ​ 5,385,550 ​ ​ ​ 5,152,789 ​ ​ 232,761 ​ Analysis of Results of Operations Second quarter of 2026 compared to 2025 Net income was $16.3 million, or $0.96 per diluted common share, for the second quarter of 2026, compared to $11.7 million, or $0.69 per diluted common share, for the second quarter of 2025. For the three months ended June 30, 2026, when compared to the comparable period in 2025, the increase in net income of $4.6 million was due to an increase in net interest income after provision for loan and lease losses of $8.7 million, offset by a decrease in noninterest income of $1.0 million, an increase in noninterest expense of $1.4 million and an increase in income tax expense of $1.7 million. The tax equivalent net interest margin was 3.52% for the second quarter of 2026, compared to 3.29% for the second quarter of 2025. Noninterest income to average assets was 0.53% for the second quarter of 2026, decreasing from 0.67% for the second quarter of 2025. Noninterest expense to average assets decreased to 2.29% in the second quarter of 2026, from 2.44% in the second quarter of 2025. First six months of 2026 compared to 2025 Net income totaled $30.0 million, or $1.77 per diluted common share, for the six months ended June 30, 2026, compared to $23.0 million, or $1.36 per diluted common share, for the six months ended June 30, 2025. The increase in net income of $7.0 million for this period was primarily from the increases in net interest income after provision for loan and lease losses of $13.1 million, offset by a decrease in noninterest income of $1.7 million and an increase in noninterest expense of $2.0 million and an increase in income tax expense of $2.4 million. The tax equivalent net interest margin was 3.50% for the first six months of 2026, compared to 3.25% for the first six months of 2025. Noninterest income to average assets 47 Table of Contents ​ was 0.54% for the first six months of 2026, compared to 0.66% for the first six months of 2025. Noninterest expense to average assets decreased to 2.30% in the first six months of 2026, from 2.46% in the first six months of 2025. ​ Net Interest Income and Yield Analysis Second quarter of 2026 compared to 2025 Net interest income, taxable equivalent, increased to $48.4 million for the second quarter of 2026, up from $40.7 million for the second quarter of 2025. Net interest income increased due to higher loan and lease balances, higher yields on these assets, and lower cost of interest-bearing liabilities. Average interest-earning assets increased from $4.96 billion for the second quarter of 2025, to $5.52 billion for the second quarter of 2026, primarily from the increase in our average loan and lease balances and average securities balances, which was offset by decreases in cash balances. Over this period, average loan and lease balances increased by $560.0 million and average interest-bearing deposits increased by $395.7 million. Average securities increased by $46.0 million, average federal funds sold and other interest earning assets decreased by $43.4 million, average subordinated debt increased by $59.0 million, average borrowings increased by $33.5 million and noninterest-bearing deposits increased by $25.5 million. The tax equivalent net interest margin increased to 3.52% for the second quarter of 2026, compared to 3.29% for the second quarter of 2025. The yield on earning assets increased from 5.65% for the second quarter of 2025, to 5.70% for the second quarter of 2026, primarily due to the deployment of excess cash and cash equivalents into loans and leases. The cost of average interest-bearing deposits decreased from 2.95% for the second quarter of 2025, to 2.62% for the second quarter of 2026, primarily due to the decrease in rates by the Federal Reserve. The following tables summarizes the major components of net interest income and the related yields and costs for the periods presented (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Yield/ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Yield/ ​ ​ ​ ​ ​ Balance ​ Interest ​ Cost ​ Balance ​ Interest ​ Cost ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans and leases, including fees1 ​ $ 4,610,444 ​ $ 69,740 6.07 % $ 4,050,485 ​ $ 61,294 6.07 % Taxable securities ​ 595,018 ​ 5,722 3.86 % 562,660 ​ 4,848 3.46 % Tax-exempt securities2 ​ 79,820 ​ 715 3.59 % 66,223 ​ 500 3.03 % Federal funds sold and other earning assets ​ 232,257 ​ 2,209 3.81 % 275,647 ​ 3,161 4.60 % Total interest-earning assets ​ 5,517,539 ​ 78,386 5.70 % 4,955,015 ​ 69,803 5.65 % Noninterest-earning assets ​ 421,371 ​ ​ ​ ​ 405,804 ​ ​ ​ ​ Total assets ​ $ 5,938,910 ​ ​ ​ ​ $ 5,360,819 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 954,455 ​ 3,960 1.66 % $ 835,394 ​ 3,785 1.82 % Money market and savings deposits ​ 2,388,259 ​ 15,982 2.68 % 2,104,236 ​ 15,762 3.00 % Time deposits ​ 907,250 ​ 7,781 3.44 % 914,658 ​ 8,754 3.84 % Total interest-bearing deposits ​ 4,249,964 ​ 27,723 2.62 % 3,854,288 ​ 28,301 2.95 % Borrowings ​ 41,272 ​ 371 3.61 % 7,783 ​ 70 3.61 % Subordinated debt ​ 98,761 ​ 1,884 7.65 % 39,714 ​ 739 7.46 % Total interest-bearing liabilities ​ 4,389,997 ​ 29,978 2.74 % 3,901,785 ​ 29,110 2.99 % Noninterest-bearing deposits ​ 923,887 ​ ​ ​ ​ 898,428 ​ ​ ​ ​ Other liabilities ​ 53,677 ​ ​ ​ ​ 49,539 ​ ​ ​ ​ Total liabilities ​ 5,367,561 ​ ​ ​ ​ 4,849,752 ​ ​ ​ ​ Shareholders' equity ​ 571,349 ​ ​ ​ ​ 511,067 ​ ​ ​ ​ Total liabilities and shareholders’ equity ​ $ 5,938,910 ​ ​ ​ ​ $ 5,360,819 ​ ​ ​ ​ Net interest income, taxable equivalent ​ ​ ​ $ 48,408 ​ ​ ​ ​ $ 40,693 ​ ​ Interest rate spread ​ ​ ​ ​ 2.96 % ​ ​ ​ 2.66 % Tax equivalent net interest margin ​ ​ ​ ​ 3.52 % ​ ​ ​ 3.29 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ 125.68 % ​ ​ ​ 126.99 % Percentage of average equity to average assets ​ ​ ​ ​ 9.62 % ​ ​ ​ 9.53 % 1Yields related to tax-exempt loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0%. The taxable-equivalent adjustment was $194 thousand and $245 thousand for the three months ended June 30, 2026, and 2025, respectively. 48 Table of Contents ​ 2Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0%. The taxable-equivalent adjustment was $150 thousand and $105 thousand for the three months ended June 30, 2026, and 2025, respectively. ​ First six months of 2026 compared to 2025 Net interest income, taxable equivalent, increased to $94.7 million for the first six months of 2026, up from $79.3 million for the first six months of 2025. Net interest income was positively impacted, compared to the prior year, primarily by the increase in balances of loans and leases and the increase in yield/rate on interest-earning assets and the decrease in the cost of interest-bearing liabilities. Average interest-earning assets increased from $4.91 billion for the first six months of 2025 to $5.45 billion for the first six months of 2026, primarily due to the Company’s continued organic loan and lease growth and average securities balances, offset by decreases in our average cash balances. Over this period, average loan and lease balances increased by $526.6 million and average interest-bearing deposits increased by $369.3 million. Comparing the first six months of 2026 to the first six months of 2025, average securities increased by $46.1 million, average federal funds sold and other interest earning assets decreased by $32.0 million, average subordinated debt increased by $59.0 million, average borrowings increased by $14.5 million and noninterest-bearing deposits increased by $36.6 million. The tax equivalent net interest margin increased to 3.50% for the first six months of 2026, compared to 3.25% for the first six months of 2025. The yield on earning assets increased from 5.61% for the first six months of 2025, to 5.66% for the first six months of 2026, primarily due to the deployment of excess cash and cash equivalents into loans and leases. The cost of average interest-bearing deposits decreased from 2.93% for the first six months of 2025 to 2.61% for the first six months of 2026, primarily due to the decrease in rates by the Federal Reserve. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ Yield/ ​ Average ​ ​ ​ Yield/ ​ ​ ​ Balance Interest Cost Balance Interest Cost Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans and leases, including fees1 ​ $ 4,522,799 ​ $ 135,596 ​ 6.05 % $ 3,996,192 ​ $ 119,302 ​ 6.02 % Taxable Securities ​ ​ 589,843 ​ 11,213 3.83 % ​ 559,306 ​ 9,623 3.47 % Tax-exempt securities2 ​ 80,176 ​ 1,418 3.57 % 64,663 ​ 948 2.96 % Federal funds and other earning assets ​ 259,248 ​ 4,794 3.73 % 291,219 ​ 6,647 4.60 % Total interest-earning assets ​ 5,452,066 ​ 153,021 5.66 % 4,911,380 ​ 136,520 5.61 % Noninterest-earning assets ​ 409,589 ​ ​ ​ ​ 405,832 ​ ​ ​ ​ Total assets ​ $ 5,861,655 ​ ​ ​ ​ ​ ​ $ 5,317,212 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Shareholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing demand deposits ​ $ 954,950 ​ 7,891 1.67 % $ 841,077 ​ 7,528 1.80 % Money market and savings deposits ​ 2,363,031 ​ 31,218 2.66 % 2,084,296 ​ 30,826 2.98 % Time deposits ​ 874,564 ​ 15,143 3.49 % 897,889 ​ 17,282 3.88 % Total interest-bearing deposits ​ 4,192,545 ​ 54,252 2.61 % 3,823,262 ​ 55,636 2.93 % Borrowings ​ 22,515 ​ 371 3.32 % 8,000 ​ 140 3.53 % Subordinated debt ​ 98,727 ​ 3,748 7.66 % 39,703 ​ 1,472 7.48 % Total interest-bearing liabilities ​ 4,313,787 ​ 58,371 2.73 % 3,870,965 ​ 57,248 2.98 % Noninterest-bearing deposits ​ 927,853 ​ ​ ​ ​ 891,293 ​ ​ ​ ​ Other liabilities ​ 54,136 ​ ​ ​ ​ 50,394 ​ ​ ​ ​ Total liabilities ​ 5,295,776 ​ ​ ​ ​ 4,812,652 ​ ​ ​ ​ Shareholders' equity ​ 565,879 ​ ​ ​ ​ 504,560 ​ ​ ​ ​ Total liabilities and shareholders’ equity ​ $ 5,861,655 ​ ​ ​ ​ $ 5,317,212 ​ ​ ​ ​ Net interest income, taxable equivalent ​ ​ ​ $ 94,650 ​ ​ ​ ​ $ 79,272 ​ ​ Interest rate spread ​ ​ ​ ​ 2.93 % ​ ​ ​ 2.62 % Tax equivalent net interest margin ​ ​ ​ ​ 3.50 % ​ ​ ​ 3.25 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ 126.39 % ​ ​ ​ 126.88 % Percentage of average equity to average assets ​ ​ ​ ​ 9.65 % ​ ​ ​ 9.49 % 1Yields related to tax-exempt loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0%. The taxable-equivalent adjustment was $412 thousand and $491 thousand for the six months ended June 30, 2026, and 2025, respectively. 2Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0%. The taxable-equivalent adjustment was $298 thousand and $199 thousand for the six months ended June 30, 2026, and 2025, respectively. ​ 49 Table of Contents ​ Noninterest Income The following table summarizes noninterest income by category (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ Change ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ Change Service charges on deposit accounts ​ $ 1,881 ​ $ 1,766 ​ $ 115 ​ $ 3,734 ​ $ 3,502 ​ $ 232 Gain (loss) on sale of securities, net ​ 54 ​ (4) ​ ​ 58 ​ 55 ​ (4) ​ ​ 59 Mortgage banking ​ 916 ​ 633 ​ ​ 283 ​ 1,676 ​ 1,126 ​ ​ 550 Investment services ​ ​ 1,724 ​ ​ 1,440 ​ ​ 284 ​ ​ 3,520 ​ ​ 3,209 ​ ​ 311 Insurance commissions ​ ​ — ​ ​ 1,554 ​ ​ (1,554) ​ ​ — ​ ​ 2,967 ​ ​ (2,967) Interchange and debit card transaction fees, net ​ 1,676 ​ 1,342 ​ ​ 334 ​ 3,094 ​ 2,562 ​ ​ 532 Other ​ 1,635 ​ 2,167 ​ ​ (532) ​ 3,748 ​ 4,133 ​ ​ (385) Total noninterest income ​ $ 7,886 ​ $ 8,898 ​ $ (1,012) ​ $ 15,827 ​ $ 17,495 ​ $ (1,668) ​ Second quarter of 2026 compared to 2025 Noninterest income decreased by $1.0 million during the second quarter of 2026 compared to the same period in 2025. This quarterly change in total noninterest income primarily resulted from the following: ● Decrease in insurance commissions from sale of SBKI in the third quarter of 2025; ● Decrease in other, primarily related to fewer fees from capital markets activity; ● Increase in interchange and debit card transaction fees, net, primarily related to higher volume; ● Increase in mortgage banking, driven by increased volume; and ● Increase in investment services, driven by increased volume. First six months of 2026 compared to 2025 Noninterest income decreased by $1.7 million during the first six months of 2026 compared to the same period in 2025. This change in total noninterest income primarily resulted from the following: ● Decrease in insurance commissions from sale of SBKI in the third quarter of 2025; ● Decrease in other, primarily related to fewer fees from capital markets activity; ● Increase in interchange and debit card transaction fees, net, primarily related to higher volume; ● Increase in mortgage banking, driven by increased volume; and ● Increase in investment services, driven by increased volume. Noninterest Expense The following table summarizes noninterest expense by category (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ Change ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ Change Salaries and employee benefits ​ $ 21,015 ​ $ 19,602 ​ $ 1,413 ​ $ 41,429 ​ $ 38,836 ​ $ 2,593 Occupancy and equipment ​ 3,351 ​ 3,432 ​ ​ (81) ​ 6,696 ​ 6,829 ​ (133) FDIC insurance ​ 920 ​ 992 ​ ​ (72) ​ 1,670 ​ 1,952 ​ (282) Other real estate and loan-related expense ​ 806 ​ 757 ​ ​ 49 ​ 1,597 ​ 1,415 ​ 182 Advertising and marketing ​ 408 ​ 390 ​ ​ 18 ​ 795 ​ 772 ​ 23 Data processing and technology ​ 2,683 ​ 2,651 ​ ​ 32 ​ 5,119 ​ 5,309 ​ (190) Professional services ​ 1,366 ​ 1,153 ​ ​ 213 ​ 2,559 ​ 2,521 ​ 38 Amortization of intangibles ​ 454 ​ 566 ​ ​ (112) ​ 911 ​ 1,135 ​ (224) Other ​ 2,952 ​ 3,026 ​ ​ (74) ​ 6,095 ​ 6,097 ​ (2) Total noninterest expense ​ $ 33,955 ​ $ 32,569 ​ $ 1,386 ​ $ 66,871 ​ $ 64,866 ​ $ 2,005 ​ 50 Table of Contents ​ Second quarter of 2026 compared to 2025 Noninterest expense increased by $1.4 million in the second quarter of 2026 as compared to the same period in 2025. The quarterly increase in total noninterest expense primarily resulted from the following: ● Increase in salary and employee benefits, related to increased salaries and incentives from franchise growth. First six months of 2026 compared to 2025 Noninterest expense increased by $2.0 million in the first six months of 2026 as compared to the same period in 2025. The change in total noninterest expense primarily resulted from the following: ● Increase in salary and employee benefits, related to increased salaries and incentives from franchise growth. ​ Taxes ​ Second quarter of 2026 compared to 2025 In the second quarter of 2026 income tax expense totaled $4.2 million as compared to $2.6 million in same period of 2025. The effective tax rate was approximately 20.5% in the second quarter of 2026 compared to 17.9% in the second quarter of 2025. The increase is primarily due to a higher projected annual effective tax rate resulting from increased forecasted taxable income relative to non-taxable income. First six months of 2026 compared to 2025 In the first six months of 2026 income tax expense totaled $7.3 million compared to $4.9 million in the first six months of 2025. The effective tax rate was approximately 19.6% for the first six months of 2026 compared to 17.5% for the six months ended 2025. The increase is primarily due to a higher projected annual effective tax rate resulting from increased forecasted taxable income relative to non-taxable income. ​ ​ 51 Table of Contents ​ Loan and Lease Portfolio ​ The Company had total net loans and leases outstanding of approximately $4.64 billion at June 30, 2026, compared to $4.32 billion at December 31, 2025. Loans secured by real estate, consisting of commercial and residential property, are the principal component of our loan and lease portfolio. The following table summarizes the composition of our loan and lease portfolio for the periods presented (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ % of ​ ​ ​ June 30, ​ Gross ​ ​ December 31, ​ Gross ​ ​ ​ 2026 ​ Total ​ ​ 2025 ​ Total Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 1,288,115 ​ 27.6 % ​ $ 1,196,758 ​ 27.5 % Owner occupied ​ ​ 1,080,959 ​ 23.1 % ​ ​ 1,022,871 ​ 23.4 % Consumer real estate ​ 881,640 ​ 18.8 % ​ 834,626 ​ 19.1 % Construction and land development ​ 516,164 ​ 11.0 % ​ 419,176 ​ 9.6 % Commercial and industrial ​ 842,849 ​ 18.0 % ​ 817,595 ​ 18.7 % Leases ​ ​ 52,411 ​ 1.1 % ​ ​ 55,422 ​ 1.3 % Consumer and other ​ 20,797 ​ 0.4 % ​ 17,134 ​ 0.4 % Total loans and leases ​ 4,682,935 ​ 100.0 % ​ 4,363,582 ​ 100.0 % Less: Allowance for credit losses ​ (45,252) ​ ​ ​ ​ (40,906) ​ ​ ​ Loans and leases, net ​ $ 4,637,683 ​ ​ ​ ​ $ 4,322,676 ​ ​ ​ ​ Loan and Lease Portfolio Maturities The following table sets forth the maturity distribution of our loans and leases at June 30, 2026, including the interest rate sensitivity for loans and leases maturing after one year (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rate Structure for Loans and Leases ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Maturing Over One Year ​ ​ One Year ​ One through ​ ​ Five through ​ Over Fifteen ​ ​ ​ ​ Fixed ​ Floating ​ ​ or Less ​ Five Years ​ ​ Fifteen Years ​ Years ​ Total ​ Rate ​ Rate Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 183,425 ​ $ 790,608 ​ $ 284,936 ​ $ 29,146 ​ $ 1,288,115 ​ $ 453,912 ​ $ 650,778 Owner occupied ​ ​ 99,032 ​ ​ 572,926 ​ ​ 381,659 ​ ​ 27,342 ​ ​ 1,080,959 ​ ​ 476,095 ​ ​ 505,832 Consumer real estate-mortgage ​ 68,362 ​ 220,821 ​ ​ 102,439 ​ 490,018 ​ 881,640 ​ 246,189 ​ 567,089 Construction and land development ​ 150,014 ​ 224,863 ​ ​ 85,218 ​ 56,069 ​ 516,164 ​ 34,076 ​ 332,074 Commercial and industrial ​ 344,883 ​ 371,502 ​ ​ 120,937 ​ 5,527 ​ 842,849 ​ 315,595 ​ 182,371 Leases ​ ​ 2,719 ​ ​ 48,010 ​ ​ 1,682 ​ ​ — ​ ​ 52,411 ​ ​ 49,692 ​ ​ — Consumer and other ​ 13,842 ​ 6,746 ​ ​ 181 ​ 28 ​ 20,797 ​ 4,512 ​ 2,443 Total loans and leases ​ $ 862,277 ​ $ 2,235,476 ​ $ 977,052 ​ $ 608,130 ​ $ 4,682,935 ​ $ 1,580,071 ​ $ 2,240,587 ​ Nonaccrual, Past Due, and Restructured Loans and Leases Nonperforming loans and leases, as a percentage of total gross loans and leases, net of deferred fees, were 0.25% as of June 30, 2026, and 0.22% December 31, 2025. Total nonperforming assets, as a percentage of total assets, were 0.23% at June 30, 2026, and 0.22% at December 31, 2025. ​ 52 Table of Contents ​ The following table is a summary of our loans and leases that were past due at least 30 days but less than 89 days, and 90 days or more past due, excluding nonaccrual loans for the periods presented (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accruing Loans ​ ​ Accruing Loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30-89 Days ​ ​ 90 Days or More ​ ​ Total Accruing ​ ​ ​ ​ ​ Past Due ​ ​ Past Due ​ ​ Past Due Loans ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ ​ ​ ​ Percentage of ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Total ​ ​ ​ ​ Loans in ​ ​ ​ ​ ​ Loans in ​ ​ ​ ​ ​ Loans in ​ ​ ​ Loans ​ ​ Amount ​ Category ​ ​ ​ Amount ​ Category ​ ​ ​ Amount ​ Category ​ June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied $ 1,288,115 ​ $ 392 ​ 0.03 % ​ $ - ​ - ​ ​ $ 392 ​ 0.03 % Owner occupied ​ 1,080,959 ​ ​ 613 ​ 0.06 ​ ​ ​ - ​ - ​ ​ ​ 613 ​ 0.06 ​ Consumer real estate ​ 881,640 ​ ​ 775 ​ 0.09 ​ ​ ​ - ​ - ​ ​ ​ 775 ​ 0.09 ​ Construction and land development ​ 516,164 ​ ​ 55 ​ 0.01 ​ ​ ​ - ​ - ​ ​ ​ 55 ​ 0.01 ​ Commercial and industrial ​ 842,849 ​ ​ 1,223 ​ 0.15 ​ ​ ​ - ​ - ​ ​ ​ 1,223 ​ 0.15 ​ Leases ​ 52,411 ​ ​ 2,753 ​ 5.25 ​ ​ ​ - ​ - ​ ​ ​ 2,753 ​ 5.25 ​ Consumer and other ​ 20,797 ​ ​ 521 ​ 2.51 ​ ​ ​ - ​ - ​ ​ ​ 521 ​ 2.51 ​ Total $ 4,682,935 ​ $ 6,332 ​ 0.14 % ​ $ - ​ - % ​ $ 6,332 ​ 0.14 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied $ 1,196,758 ​ $ - ​ - % ​ $ - ​ - % ​ $ - ​ - % Owner occupied ​ 1,022,871 ​ ​ 803 ​ 0.08 ​ ​ ​ - ​ - ​ ​ ​ 803 ​ 0.08 ​ Consumer real estate ​ 834,626 ​ ​ 2,673 ​ 0.32 ​ ​ ​ - ​ - ​ ​ ​ 2,673 ​ 0.32 ​ Construction and land development ​ 419,176 ​ ​ 68 ​ 0.02 ​ ​ ​ - ​ - ​ ​ ​ 68 ​ 0.02 ​ Commercial and industrial ​ 817,595 ​ ​ 1,287 ​ 0.16 ​ ​ ​ - ​ - ​ ​ ​ 1,287 ​ 0.16 ​ Leases ​ 55,422 ​ ​ 1,404 ​ 2.53 ​ ​ ​ - ​ - ​ ​ ​ 1,404 ​ 2.53 ​ Consumer and other ​ 17,134 ​ ​ 120 ​ 0.70 ​ ​ ​ - ​ - ​ ​ ​ 120 ​ 0.70 ​ Total $ 4,363,582 ​ $ 6,355 ​ 0.15 % ​ $ - ​ - % ​ $ 6,355 ​ 0.15 % ​ The following table is a summary of our nonaccrual loans and leases for the periods presented (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2026 ​ ​ December 31, 2025 ​ ​ ​ ​ Nonaccrual Loans ​ ​ ​ ​ ​ Nonaccrual Loans ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ ​ ​ ​ ​ ​ ​ Percentage of ​ ​ ​ Total ​ ​ ​ ​ Loans in ​ ​ ​ Total ​ ​ ​ ​ Loans in ​ ​ ​ Loans ​ ​ Amount ​ Category ​ ​ ​ Loans ​ ​ Amount ​ Category ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied $ 1,288,115 ​ $ 900 ​ 0.07 % ​ $ 1,196,758 ​ $ 672 ​ 0.06 % Owner occupied ​ 1,080,959 ​ ​ 1,826 ​ 0.17 ​ ​ ​ 1,022,871 ​ ​ 1,934 ​ 0.19 ​ Consumer real estate ​ 881,640 ​ ​ 2,416 ​ 0.27 ​ ​ ​ 834,626 ​ ​ 2,300 ​ 0.28 ​ Construction and land development ​ 516,164 ​ ​ 46 ​ 0.01 ​ ​ ​ 419,176 ​ ​ - ​ - ​ Commercial and industrial ​ 842,849 ​ ​ 2,590 ​ 0.31 ​ ​ ​ 817,595 ​ ​ 1,828 ​ 0.22 ​ Leases ​ 52,411 ​ ​ 3,682 ​ 7.03 ​ ​ ​ 55,422 ​ ​ 2,858 ​ 5.16 ​ Consumer and other ​ 20,797 ​ ​ 14 ​ 0.07 ​ ​ ​ 17,134 ​ ​ 9 ​ 0.05 ​ Total $ 4,682,935 ​ $ 11,474 ​ 0.25 % ​ $ 4,363,582 ​ $ 9,601 ​ 0.22 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses to nonaccrual loans ​ ​ ​ ​ 394.39% ​ ​ ​ ​ ​ ​ ​ ​ 426.06% ​ ​ ​ ​ Allocation of the Allowance for Credit Losses ​ We maintain the allowance at a level that we deem appropriate to adequately cover change in the loan and lease portfolio. Our provision for credit losses for loans and leases for the six months ended June 30, 2026, was $5.1 million compared to $2.6 million in the same period of 2025, an increase of $2.5 million. As of June 30, 2026, and December 31, 2025, our allowance for credit losses was $45.3 million and $40.9 million, respectively, which we deemed to be adequate at each of the respective dates. Our allowance for credit loss as a percentage of total loans and leases was 0.97% at June 30, 2026, and 0.94% at December 31, 2025. During the quarter ending March 31, 2026, the Bank enhanced its ACL loss model for loans and leases. See Note 1. Recently Modified Accounting Policies and Allowance for Credit Losses in the Notes to our Consolidated Financial Statements in this Form 10-Q for further information related to these changes. ​ 53 Table of Contents ​ The following table sets forth, based on management's best estimate, the allocation of the allowance for credit losses on loans and leases to categories of loans and leases and loan and lease balances by category and the percentage of loans and leases in each category to total loans and leases and allowance for credit losses as a percentage of total loans and leases within each loan and lease category for each period presented (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage of Loans ​ ​ ​ ​ Ratio of Allowance ​ ​ ​ Amount of ​ in Each Category ​ ​ Total ​ Allocated to Loans in ​ ​ ​ Allowance Allocated ​ to Total Loans ​ ​ Loans ​ Each Category ​ June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 8,386 ​ ​ 27.6 % ​ $ 1,288,115 ​ ​ 0.65 % Owner occupied ​ ​ 8,290 ​ ​ 23.1 ​ ​ ​ 1,080,959 ​ ​ 0.77 ​ Consumer real estate ​ ​ 9,294 ​ ​ 18.8 ​ ​ ​ 881,640 ​ ​ 1.05 ​ Construction and land development ​ ​ 9,252 ​ ​ 11.0 ​ ​ ​ 516,164 ​ ​ 1.79 ​ Commercial and industrial ​ ​ 8,207 ​ ​ 18.0 ​ ​ ​ 842,849 ​ ​ 0.97 ​ Leases ​ ​ 1,623 ​ ​ 1.1 ​ ​ ​ 52,411 ​ ​ 3.10 ​ Consumer and other ​ ​ 200 ​ ​ 0.4 ​ ​ ​ 20,797 ​ ​ 0.96 ​ Total ​ $ 45,252 ​ ​ 100.0 % ​ $ 4,682,935 ​ ​ 0.97 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 8,044 ​ ​ 27.5 % ​ $ 1,196,758 ​ ​ 0.67 % Owner occupied ​ ​ 8,876 ​ ​ 23.4 ​ ​ ​ 1,022,871 ​ ​ 0.87 ​ Consumer real estate ​ ​ 8,767 ​ ​ 19.1 ​ ​ ​ 834,626 ​ ​ 1.05 ​ Construction and land development ​ ​ 4,298 ​ ​ 9.6 ​ ​ ​ 419,176 ​ ​ 1.03 ​ Commercial and industrial ​ ​ 8,611 ​ ​ 18.7 ​ ​ ​ 817,595 ​ ​ 1.05 ​ Leases ​ ​ 2,173 ​ ​ 1.3 ​ ​ ​ 55,422 ​ ​ 3.92 ​ Consumer and other ​ ​ 137 ​ ​ 0.4 ​ ​ ​ 17,134 ​ ​ 0.80 ​ Total ​ $ 40,906 ​ ​ 100.0 % ​ $ 4,363,582 ​ ​ 0.94 % ​ The allowance associated with the individually evaluated loans and leases was approximately $3.5 million at June 30, 2026, and $4.9 million at December 31, 2025. 54 Table of Contents ​ Analysis of the Allowance for Credit Losses The following is a summary of changes in the allowance for credit losses for the periods presented including the ratio of the allowance for credit losses to total loans and leases as of the end of each period (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of Net (charge-offs) ​ ​ ​ Provision for ​ Net (charge-offs) ​ Average ​ Recoveries to ​ ​ ​ Credit Losses ​ Recoveries ​ Loans ​ Average Loans ​ Three Months Ended June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 22 ​ $ - ​ $ 1,278,497 ​ ​ - % Owner occupied ​ ​ 164 ​ ​ 10 ​ ​ 1,059,332 ​ ​ - ​ Consumer real estate ​ ​ 382 ​ ​ - ​ ​ 868,404 ​ ​ - ​ Construction and land development ​ ​ 462 ​ ​ 58 ​ ​ 498,290 ​ ​ 0.01 ​ Commercial and industrial ​ ​ 316 ​ ​ (302) ​ ​ 833,129 ​ ​ (0.04) ​ Leases ​ ​ 387 ​ ​ (228) ​ ​ 53,467 ​ ​ (0.43) ​ Consumer and other ​ ​ 122 ​ ​ (91) ​ ​ 19,324 ​ ​ (0.47) ​ Total ​ $ 1,855 ​ $ (553) ​ $ 4,610,444 ​ ​ (0.01) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ (72) ​ $ - ​ $ 1,113,659 ​ ​ - % Owner occupied ​ ​ 446 ​ ​ 1 ​ ​ 920,454 ​ ​ - ​ Consumer real estate ​ ​ 199 ​ ​ - ​ ​ 792,439 ​ ​ - ​ Construction and land development ​ ​ 296 ​ ​ - ​ ​ 373,569 ​ ​ - ​ Commercial and industrial ​ ​ 663 ​ ​ 39 ​ ​ 772,146 ​ ​ 0.01 ​ Leases ​ ​ 182 ​ ​ (156) ​ ​ 63,232 ​ ​ (0.25) ​ Consumer and other ​ ​ 33 ​ ​ (30) ​ ​ 14,986 ​ ​ (0.20) ​ Total ​ $ 1,747 ​ $ (146) ​ $ 4,050,485 ​ ​ - % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 342 ​ $ - ​ $ 1,254,193 ​ ​ - % Owner occupied ​ ​ (598) ​ ​ 12 ​ ​ 1,039,194 ​ ​ - ​ Consumer real estate ​ ​ 527 ​ ​ - ​ ​ 851,896 ​ ​ - ​ Construction and land development ​ ​ 4,896 ​ ​ 58 ​ ​ 488,817 ​ ​ 0.01 ​ Commercial and industrial ​ ​ (47) ​ ​ (357) ​ ​ 817,292 ​ ​ (0.04) ​ Leases ​ ​ (263) ​ ​ (287) ​ ​ 52,451 ​ ​ (0.55) ​ Consumer and other ​ ​ 210 ​ ​ (147) ​ ​ 18,957 ​ ​ (0.78) ​ Total ​ $ 5,067 ​ $ (721) ​ $ 4,522,799 ​ ​ (0.02) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-owner occupied ​ $ 282 ​ $ - ​ $ 1,098,732 ​ ​ - % Owner occupied ​ ​ 518 ​ ​ 3 ​ ​ 908,116 ​ ​ - ​ Consumer real estate ​ ​ 532 ​ ​ - ​ ​ 781,818 ​ ​ - ​ Construction and land development ​ ​ 82 ​ ​ 200 ​ ​ 368,561 ​ ​ 0.05 ​ Commercial and industrial ​ ​ 775 ​ ​ 3 ​ ​ 761,796 ​ ​ - ​ Leases ​ ​ 295 ​ ​ (346) ​ ​ 62,385 ​ ​ (0.55) ​ Consumer and other ​ ​ 107 ​ ​ (98) ​ ​ 14,785 ​ ​ (0.66) ​ Total ​ $ 2,591 ​ $ (238) ​ $ 3,996,192 ​ ​ (0.01) % ​ Securities Portfolio Our available-for-sale securities portfolio is carried at fair market value and our held-to-maturity securities portfolio is carried at amortized cost, and consists primarily of Federal agency bonds, mortgage-backed securities, state and municipal securities and other debt securities. Our securities portfolio increased from $662.0 million at December 31, 2025, to $679.9 million at June 30, 2026, primarily as a result of available-for-sale securities purchases. Our securities to asset ratio has decreased from 11.3% at December 31, 2025, to 11.1% at June 30, 2026. ​ 55 Table of Contents ​ The following table presents the contractual maturity of the Company’s securities by contractual maturity date and average yields based on amortized cost (for all obligations on a fully taxable basis) at June 30, 2026 (dollars in thousands). The composition and maturity/repricing distribution of the securities portfolio is subject to change depending on rate sensitivity, capital and liquidity needs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One Year ​ One through ​ Five through ​ ​ ​ Over Ten ​ ​ ​ ​ ​ ​ or Less ​ Five Years ​ Ten Years ​ Years ​ Total ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Average ​ ​ Available-for-sale: ​ ​ Amount ​ Yield (1) ​ ​ ​ Amount ​ Yield (1) ​ ​ ​ Amount ​ Yield (1) ​ ​ ​ Amount ​ Yield (1) ​ ​ ​ Amount ​ Yield (1) ​ ​ U.S. Treasury ​ $ — ​ - % ​ $ 31,420 ​ 1.28 % ​ $ — ​ - % ​ $ — ​ - % ​ $ 31,420 ​ 1.28 % ​ U.S. Government agencies ​ ​ — ​ - ​ ​ ​ — ​ - ​ ​ ​ 18,552 ​ 4.73 ​ ​ ​ — ​ - ​ ​ ​ 18,552 ​ 4.73 ​ ​ State and political subdivisions ​ 530 ​ 2.00 ​ ​ 5,362 ​ 3.37 ​ ​ 2,974 ​ 4.31 ​ ​ 30,010 ​ 5.22 ​ ​ 38,876 ​ 4.86 ​ ​ Other debt securities ​ — ​ - ​ ​ 6,992 ​ 7.09 ​ ​ 13,763 ​ 6.26 ​ ​ — ​ - ​ ​ 20,755 ​ 6.54 ​ ​ Mortgage-backed securities ​ 2,121 ​ 1.39 ​ ​ 45,694 ​ 4.46 ​ ​ 61,160 ​ 4.21 ​ ​ 358,477 ​ 4.13 ​ ​ 467,452 ​ 4.16 ​ ​ Total securities ​ $ 2,651 ​ 1.62 ​ ​ $ 89,468 ​ 3.48 ​ ​ $ 96,449 ​ 4.61 ​ ​ $ 388,487 ​ 4.21 ​ ​ $ 577,055 ​ 4.15 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held-to-maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury ​ $ — ​ - % ​ $ — ​ - % ​ $ — ​ - % ​ $ — ​ - % ​ $ — ​ - % ​ U.S. Government agencies ​ ​ — ​ - ​ ​ ​ 20,897 ​ 1.90 ​ ​ ​ 25,338 ​ 1.82 ​ ​ ​ — ​ - ​ ​ ​ 46,235 ​ 1.86 ​ ​ State and political subdivisions ​ — ​ - ​ ​ 2,962 ​ 2.55 ​ ​ 18,736 ​ 2.16 ​ ​ 28,292 ​ 2.13 ​ ​ 49,990 ​ 2.17 ​ ​ Other debt securities ​ — ​ - ​ ​ — ​ - ​ ​ — ​ - ​ ​ — ​ - ​ ​ — ​ - ​ ​ Mortgage-backed securities ​ — ​ - ​ ​ 4,603 ​ 2.14 ​ ​ — ​ - ​ ​ 19,020 ​ 2.12 ​ ​ 23,623 ​ 2.12 ​ ​ Total securities ​ $ — ​ - ​ ​ $ 28,462 ​ 2.01 ​ ​ $ 44,074 ​ 1.96 ​ ​ $ 47,312 ​ 2.13 ​ ​ $ 119,848 ​ 2.04 ​ ​ (1) Based on amortized cost, taxable equivalent basis Deposits Deposits are the primary source of funds for the Company’s lending and investing activities. The Company provides a range of deposit services to businesses and individuals, including noninterest-bearing checking accounts, interest-bearing checking accounts, savings accounts, money market accounts, Individual Retirement Accounts and certificates of deposit. These accounts generally earn interest at rates the Company establishes based on market factors and the anticipated amount and timing of funding needs. The establishment or continuity of a core deposit relationship can be a factor in loan pricing decisions. While the Company’s primary focus is on establishing customer relationships to attract core deposits, at times, the Company uses brokered deposits and other wholesale deposits to supplement its funding sources. As of June 30, 2026, and December 31, 2025, the Company had $106.2 and $51.9 million in brokered deposits, respectively. The following tables summarize the average balances outstanding and average interest rates for each major category of deposits for the three and six month periods ending June 30, 2026, and 2025, respectively (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ ​ June 30, 2026 ​ June 30, 2025 ​ ​ ​ ​ ​ Average ​ ​ ​ % of ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ % of ​ ​ ​ Average ​ ​ ​ ​ ​ Balance ​ Total ​ Rate ​ Balance ​ Total ​ Rate ​ Noninterest-bearing demand ​ $ 923,887 17.9 % — % $ 898,428 18.9 % — % Interest-bearing demand ​ 954,455 18.4 % 1.66 % 835,394 17.6 % 1.82 % Money market and savings ​ 2,388,259 46.2 % 2.68 % 2,104,236 44.3 % 3.00 % Time deposits ​ 907,250 17.5 % 3.44 % 914,658 19.2 % 3.84 % Total average deposits ​ $ 5,173,851 100.0 % 2.15 % $ 4,752,716 100.0 % 2.39 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ Six Months Ended ​ ​ ​ June 30, 2026 ​ June 30, 2025 ​ ​ ​ ​ ​ Average ​ ​ ​ % of ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ % of ​ ​ ​ Average ​ ​ ​ ​ ​ Balance ​ Total ​ Rate ​ Balance ​ Total ​ Rate ​ Noninterest-bearing demand ​ $ 927,853 18.1 % — % $ 891,293 18.9 % — % Interest-bearing demand ​ 954,950 18.6 % 1.67 % 841,077 17.8 % 1.80 % Money market and savings ​ 2,363,031 46.1 % 2.66 % 2,084,296 44.2 % 2.98 % Time deposits ​ 874,564 17.1 % 3.49 % 897,889 19.0 % 3.88 % Total average deposits ​ $ 5,120,398 100.0 % 2.14 % $ 4,714,555 100.0 % 2.38 % ​ 56 Table of Contents ​ The Company believes its deposit product offerings are properly structured to attract and retain core deposit relationships. The average cost of interest-bearing deposits for the three months ended June 30, 2026, and 2025, was 2.15% and 2.39%, respectively. The cost decrease was primarily attributable to the rate decreases by the Federal Reserve. The average cost of interest-bearing deposits for the six months ended June 30, 2026, and 2025, was 2.14% and 2.38%, respectively. The cost decrease was primarily attributable to rate decreases by the Federal Reserve. Total deposits as of June 30, 2026, were $5.39 billion, which was an increase of $232.8 million from December 31, 2025. This increase was driven primarily by increases in money market deposits of $181.2 million, interest-bearing demand deposits of $76.4 million, certificate time deposits of $62.0 million and brokered deposits of $54.3 million, offset by a decline in noninterest demand deposits of $141.0 million. As of June 30, 2026, the Company had outstanding time deposits under $250,000 with balances of $474.6 million and time deposits over $250,000 with balances of $512.2 million. The following table summarizes the maturities of time deposits $250,000 or more (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2026 Three months or less ​ $ 203,004 Three to six months ​ 144,152 Six to twelve months ​ 145,008 More than twelve months ​ 20,020 Total ​ $ 512,184 ​ Borrowings The Company uses short-term borrowings and long-term debt to provide both funding and, to a lesser extent, regulatory capital using debt at the Company level which can be down-streamed as Tier 1 capital to the Bank. Borrowings totaled $603 thousand at June 30, 2026, and consisted entirely of securities sold under repurchase agreements. Long-term debt totaled $98.8 million at June 30, 2026, and $98.7 million at December 31, 2025, respectively, and consisted entirely of subordinated debt. For more information regarding our borrowings, see “Part I - Item 1. Consolidated Financial Statements – Note 6 – Borrowings, Line of Credit and Subordinated Debt” of this report. Capital Resources The Company uses leverage analysis to examine the potential of the institution to increase assets and liabilities using the current capital base. The key measurements included in this analysis are the Bank’s Common Equity Tier 1 capital, Tier 1 capital, leverage and total capital ratios. At June 30, 2026 and December 31, 2025, our capital ratios, including our Bank’s capital ratios, exceeded regulatory minimum capital requirements. From time to time, we may be required to support the capital needs of our bank subsidiary. We believe we have various capital raising techniques available to us to provide for the capital needs of our bank, if necessary. For more information regarding our capital, leverage and total capital ratios, see “Part I - Item 1. Consolidated Financial Statements – Note 12 – Regulatory Matters” of this report. Liquidity and Off-Balance Sheet Arrangements The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing and depository needs of its customers. At June 30, 2026, we had $1.04 billion of pre-approved but unused lines of credit and $23.3 million of standby letters of credit. These commitments generally have fixed expiration dates, and many will expire without being drawn upon. The total commitment level does not necessarily represent future cash requirements. If needed to fund these outstanding commitments, the Bank has the ability to liquidate federal funds sold or securities available-for-sale, or on a short-term basis to borrow and purchase federal funds from other financial institutions. For more information regarding our off-balance sheet arrangements, see “Part I - Item 1. Consolidated Financial Statements – Note 8 – Commitments and Contingent Liabilities” of this report. 57 Table of Contents ​ Market Risk and Liquidity Risk Management The Bank’s Asset Liability Management Committee (“ALCO”), oversees market risk management and establishes risk measures, limits on policy guidelines for managing the amount of interest rate risk and its effect on net interest income and capital. A variety of measures are used to provide for a comprehensive overview of the Company’s magnitude of interest rate risk, the distribution of risk, the level of risk over time and the exposure to changes in certain interest rate relationships. We utilize an independent third party earnings simulation model as the primary quantitative tool in measuring the amount of interest rate risk associated with changing market rates. The model quantifies the effects of various interest rate scenarios on projected net interest income and net income over the next 12-24 months. The model measures the impact on net interest income relative to a flat-rate case scenario of hypothetical fluctuations in interest rates over the next 12-24 months. These simulations incorporate assumptions regarding balance sheet growth and mix, pricing and the repricing and maturity characteristics of the existing and projected balance sheet. The impact of interest rate, caps and floors, is also included in the model. Other interest rate-related risks such as prepayment, basis and option risk are also considered. In addition, third parties will join the meetings of ALCO to provide feedback regarding future balance sheet structure, earnings and liquidity strategies. ALCO continuously monitors and manages the balance between interest rate-sensitive assets and liabilities. The objective is to manage the impact of fluctuating market rates on net interest income within acceptable levels. In order to meet this objective, management may lengthen or shorten the duration of assets or liabilities. Interest Rate Sensitivity Interest rate sensitivity refers to the responsiveness of interest-earning assets and interest-bearing liabilities to changes in market interest rates. In the normal course of business, we are exposed to market risk arising from fluctuations in interest rates. ALCO measures and evaluates the interest rate risk so that we can meet customer demands for various types of loans and leases and deposits. ALCO determines the most appropriate amounts of on-balance sheet and off-balance sheet items. The primary measurements we use to help us manage interest rate sensitivity are an earnings simulation model and an economic value of equity model. These measurements are used in conjunction with competitive pricing analysis and are further described below. Earnings Simulation Model. We believe interest rate risk is effectively measured by our earnings simulation modeling. Earning assets, interest-bearing liabilities and off-balance sheet financial instruments are combined with simulated forecasts of interest rates for the next 12 months. To limit interest rate risk, we have guidelines for our earnings at risk which seek to limit the variance of net interest income in instantaneous changes to interest rates. We also periodically monitor simulations based on various rate scenarios such as non-parallel shifts or 12-month ramp in market interest rates over time. For changes up or down in rates from our static interest rate forecast over the next 12 months, limits in the decline in net interest income are as follows: ​ ​ ​ ​ ​ ​ ​ Estimated % Change in Net Interest Income Over 12 Months June 30, 2026: ​ ​ ​ ​ Instantaneous, Parallel Change in Prevailing Interest Rates Equal to: ​ ​ 100 basis points increase 0.77% 200 basis points increase 0.81% 100 basis points decrease (0.85)% 200 basis points decrease ​ (0.91)% ​ ​ ​ ​ ​ ​ Estimated % Change in Net Interest Income Over 12 Months June 30, 2026: ​ ​ ​ ​ 12-month ramp, Parallel Change in Prevailing Interest Rates Equal to: ​ ​ 100 basis points increase 0.43% 200 basis points increase 0.68% 100 basis points decrease (0.40)% 200 basis points decrease ​ (0.61)% ​ Economic Value of Equity Our economic value of equity model measures the extent that estimated economic values of our assets, liabilities and off-balance sheet items will change as a result of interest rate changes. Economic values are 58 Table of Contents ​ determined by discounting expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case economic value of equity. To help monitor our related risk, we’ve established the following policy limits regarding simulated changes in our economic value of equity: ​ ​ ​ ​ ​ Current Estimated Instantaneous Rate Change June 30, 2026: ​ ​ Instantaneous, Parallel Change in Prevailing Interest Rates Equal to: ​ ​ ​ ​ ​ ​ 100 basis points increase (0.78)% 200 basis points increase (2.14)% 100 basis points decrease ​ 0.79% 200 basis points decrease ​ 0.12% ​ At June 30, 2026, our model results indicated that we were within our policy limits. ​ Liquidity Risk Management The purpose of liquidity risk management is to ensure that there are sufficient cash flows to satisfy loan and lease demand, deposit withdrawals, and our other needs. Traditional sources of liquidity for a bank include asset maturities and growth in core deposits. A bank may achieve its desired liquidity objectives from the management of its assets and liabilities and by internally generated funding through its operations. Funds invested in marketable instruments that can be readily sold and the continuous maturing of other earning assets are sources of liquidity from an asset perspective. The liability base provides sources of liquidity through attraction of increased deposits and borrowing funds from various other institutions. Changes in interest rates also affect our liquidity position. We currently price deposits in response to market rates and intend to continue this policy. If deposits are not priced in response to market rates, a loss of deposits could occur which would negatively affect our liquidity position. Scheduled loan and lease payments are a relatively stable source of funds, but loan and lease payoffs and deposit flows fluctuate significantly, being influenced by interest rates, general economic conditions and competition. Additionally, debt securities are subject to prepayment and call provisions that could accelerate their payoff prior to stated maturity. We attempt to price our deposit products to meet our asset/liability objectives consistent with local market conditions. Our ALCO is responsible for monitoring our ongoing liquidity needs. Our regulators also monitor our liquidity and capital resources on a periodic basis. The Company has $2.7 million in securities that mature throughout the next 12 months. The Company also has unused borrowing capacity in the amount of $1.12 billion available with the Federal Reserve, Federal Home Loan Bank, several correspondent banks and a line of credit. With these sources of funds, the Company currently anticipates adequate liquidity to meet the expected obligations of its customers. ​ ​ ​ ​ ​ ​ 59 Table of Contents ​ ​