WEST DES MOINES, Iowa, July 23, 2026 (GLOBE NEWSWIRE) -- West Bancorporation, Inc. (NASDAQ:WTBA, the "Company")), parent company of West Bank, today reported second quarter 2026 net income of $11.1 million, or $0.64 per diluted common share, compared to first quarter 2026 net income of $10.6 million, or $0.61 per diluted common share, and second quarter 2025 net income of $8.0 million, or $0.47 per diluted common share. On July 22, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.26 per common share, an increase of $0.01 from the prior quarter and representing a record high quarterly dividend for the Company. The dividend is payable on August 19, 2026, to stockholders of record on August 5, 2026.

David Nelson, President and Chief Executive Officer of the Company, commented, "Our net income for the first half of 2026 has increased 37 percent compared to the first half of 2025. Our annualized return on average equity has improved to 16.06 percent for the first half of 2026, compared to 13.74 percent for the first half of 2025 and our annualized return on average assets has grown to 1.10 percent in the second quarter of 2026. As a result of our strong financial performance, we are excited to announce a $0.01 increase in our regular quarterly dividend. This marks the largest quarterly dividend in our Company’s history, providing shareholders with meaningful cash returns on their investments."

Mr. Nelson added, "Our balance sheet remains exceptionally strong, supported by solid capital and liquidity levels. Credit quality remains pristine with no loans on nonaccrual status at June 30, 2026. Additionally, this marks our eighth consecutive quarter-end with no loans greater than 30 days past due."

Second Quarter 2026 Compared to First Quarter 2026 Overview

Quarterly net income was $11.1 million, an increase of $0.5 million, or 4.74 percent, compared to prior quarter.
Quarterly return on average equity increased to 16.21 percent, compared to 15.91 percent in prior quarter.
Loan balances were down slightly by $41.5 million, or 1.4 percent, at June 30, 2026 compared to March 31, 2026. However, average loan balances increased by $13.0 million in the second quarter of 2026 compared to the first quarter of 2026. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing.
No credit loss expense on loans was recorded in either the second or first quarter of 2026.
The allowance for credit losses to total loans was 1.03 percent as of June 30, 2026, compared to 1.02 percent as of March 31, 2026. There were no nonaccrual loans at June 30, 2026 or March 31, 2026. Substandard loans increased to $14.4 million as of June 30, 2026, from $0 as of March 31, 2026. The substandard loans balance consisted of loans to two borrowers, which have loans in the commercial and commercial real estate segments. In both instances, the Company believes the loans within the relationship are sufficiently collateralized. Watch list loans decreased from $41.3 million as of March 31, 2026 to $7.1 million as of June 30, 2026. This decrease was primarily due to loan payoffs totaling approximately $32.2 million.
Deposits, excluding brokered deposits, increased $15.9 million, or 0.5 percent, in the second quarter of 2026. Brokered deposits were reduced by $6.0 million. As of June 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 27.2 percent of total deposits.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.59 percent for the first quarter of 2026. Net interest income for the second quarter of 2026 was $25.5 million, compared to $24.4 million for the first quarter of 2026. The improvement was primarily due to an increase in average loan balances and increase in loan yields for the second quarter of 2026. Loan yields increased by 6 basis points in the second quarter of 2026.
The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 49.85 percent for the first quarter of 2026.
The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 6.75 percent as of March 31, 2026.

Second Quarter 2026 Compared to Second Quarter 2025 Overview

Quarterly net income was $11.1 million, an increase of $3.1 million, or 38.8 percent, compared to prior year.
Quarterly return on average equity increased to 16.21 percent, compared to 13.65 percent in prior year.
Loan balances were down slightly by $16.2 million at June 30, 2026, or 0.5 percent, compared to June 30, 2025. Average loan balances for the two comparable quarterly periods were relatively unchanged. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings adding real estate collateral.
Deposits, excluding brokered deposits, increased $50.7 million, or 1.6 percent, as of June 30, 2026, compared to June 30, 2025. Brokered deposits were reduced by $97.8 million.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.27 percent for the second quarter of 2025. Net interest income for the second quarter of 2026 was $25.5 million, compared to $21.4 million for the second quarter of 2025. The increase in net interest margin and net interest income was primarily due to a decrease in interest expense on deposits. The cost of deposits decreased by 46 basis points in the second quarter of 2026 compared to the second quarter of 2025. This was primarily driven by the decline in deposit rates in response to the reduction in the federal funds rate in the second half of 2025.
The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 56.45 percent for the second quarter of 2025. The improvement in the efficiency ratio in the second quarter of 2026 compared to the second quarter of 2025 was primarily due to the increase in net interest income.
The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 5.94 percent as of June 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings and a decrease in accumulated other comprehensive loss.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, July 23, 2026. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until August 6, 2026, by dialing 800-770-2030. The conference ID for the replay call is 7846129 followed by the # key.

About West Bancorporation, Inc. (NASDAQ:WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words "believes," "expects," "intends," "anticipates," "projects," "forecasts," "plans," "targets," "future," "confident," "potentially," "probably," "outlook," "may," "should," "would," "could," "will," "strategy," "plan," "opportunity," "will be," "will likely result," "will continue" or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising interest rates; competitive pressures, including from non-bank competitors such as credit unions, "fintech" companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; that availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the "Risk Factors" sections of reports filed by the Company with the Securities and Exchange Commission (the "SEC"). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management’s beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended															For the Six Months Ended
KEY PERFORMANCE RATIOS AND OTHER METRICS	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Return on average assets⁽¹⁾		1.10	%		1.06	%		0.72	%		0.92	%		0.80	%		1.08	%		0.80	%
Return on average equity⁽²⁾		16.21			15.91			11.33			15.25			13.65			16.06			13.74
Net interest margin^(3)(13)		2.69			2.59			2.47			2.36			2.27			2.64			2.27
Yield on interest-earning assets^(4)(13)		5.10			5.04			5.02			5.13			5.07			5.07			5.06
Cost of interest-bearing liabilities		2.88			2.90			3.02			3.26			3.28			2.89			3.27
Efficiency ratio^(5)(13)		48.78			49.85			50.21			54.06			56.45			49.31			56.41
Nonperforming assets to total assets⁽⁶⁾		0.00			0.00			0.00			0.00			0.00
ACL ratio⁽⁷⁾		1.03			1.02			1.02			1.01			1.03
Loans/total assets		73.21			74.59			72.47			75.50			73.12
Loans/total deposits		88.20			89.71			86.54			91.00			87.45
Tangible common equity ratio⁽⁸⁾		6.97			6.75			6.42			6.40			5.94

COMMON SHARE DATA
Earnings per common share (basic)	$	0.65		$	0.62		$	0.44		$	0.55		$	0.47		$	1.27		$	0.94
Earnings per common share (diluted)		0.64			0.61			0.43			0.55			0.47			1.26			0.93
Dividends per common share		0.25			0.25			0.25			0.25			0.25			0.50			0.50
Book value per common share⁽⁹⁾		16.49			15.90			15.70			15.06			14.22
Closing stock price		26.53			23.79			22.19			20.32			19.63
Market price/book value⁽¹⁰⁾		160.89	%		149.62	%		141.34	%		134.93	%		138.05	%
Price earnings ratio⁽¹¹⁾		10.18			9.40			12.71			9.31			10.41
Annualized dividend yield⁽¹²⁾		3.77	%		4.20	%		4.51	%		4.92	%		5.09	%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio		13.46	%		12.99	%		12.77	%		12.54	%		12.53	%
Tier 1 risk-based capital ratio		10.77			10.34			10.14			9.93			9.89
Tier 1 leverage capital ratio		8.91			8.74			8.44			8.51			8.33
Common equity tier 1 ratio		10.18			9.77			9.56			9.37			9.32
West Bank:
Total risk-based capital ratio		13.97	%		13.53	%		13.35	%		13.17	%		13.21	%
Tier 1 risk-based capital ratio		13.03			12.61			12.44			12.26			12.29
Tier 1 leverage capital ratio		10.79			10.66			10.35			10.50			10.36
Common equity tier 1 ratio		13.03			12.61			12.44			12.26			12.29

(1) Annualized net income divided by average assets.

(2) Annualized net income divided by average stockholders’ equity.

(3) Annualized tax-equivalent net interest income divided by average interest-earning assets.

(4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.

(5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.

(6) Total nonperforming assets divided by total assets.

(7) Allowance for credit losses on loans divided by total loans.

(8) Common equity less intangible assets (none held) divided by tangible assets.

(9) Includes accumulated other comprehensive loss.

(10) Closing stock price divided by book value per common share.

(11) Closing stock price divided by annualized earnings per common share (basic).

(12) Annualized dividend divided by period end closing stock price.

(13) A non-GAAP measure.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
CONDENSED BALANCE SHEETS	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets
Cash and due from banks	$	30,986		$	40,018		$	25,171		$	26,875		$	35,796
Interest-earning deposits with banks		260,633			180,218			324,502			109,265			212,450
Securities purchased under agreements to resell		142,080			141,742			121,413			96,792			96,955
Securities available for sale, at fair value		446,575			456,410			468,447			537,856			536,709
Federal Home Loan Bank stock, at cost		15,168			15,180			15,167			15,190			15,311
Loans		2,950,114			2,991,638			3,001,690			3,008,888			2,966,357
Allowance for credit losses		(30,530	)		(30,523	)		(30,525	)		(30,515	)		(30,539	)
Loans, net		2,919,584			2,961,115			2,971,165			2,978,373			2,935,818
Premises and equipment, net		106,626			107,619			108,380			109,212			109,806
Bank-owned life insurance		46,751			46,500			46,192			45,875			45,567
Other assets		61,261			62,171			61,807			66,042			68,257
Total assets	$	4,029,664		$	4,010,973		$	4,142,244		$	3,985,480		$	4,056,669

Liabilities and Stockholders’ Equity
Deposits	$	3,344,900		$	3,334,972		$	3,468,470		$	3,306,517		$	3,391,993
Borrowings		374,037			375,221			376,406			389,076			390,260
Other liabilities		29,685			30,037			31,383			34,754			33,486
Stockholders’ equity		281,042			270,743			265,985			255,133			240,930
Total liabilities and stockholders’ equity	$	4,029,664		$	4,010,973		$	4,142,244		$	3,985,480		$	4,056,669

	For the Quarter Ended
AVERAGE BALANCES	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets	$	4,029,324		$	4,027,218		$	4,104,279		$	4,004,769		$	4,016,490
Loans		2,984,527			2,971,497			2,982,754			2,959,962			2,989,638
Deposits		3,347,452			3,348,255			3,418,539			3,333,800			3,353,982
Stockholders’ equity		273,967			269,453			259,932			242,245			234,399

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
LOANS	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Commercial	$	463,248		$	471,423		$	505,059		$	511,316		$	500,854
Real estate:
Construction, land and land development		333,753			376,059			426,833			448,660			459,037
1-4 family residential first mortgages		130,951			139,118			93,122			87,784			86,173
Home equity		25,999			27,084			26,088			27,083			24,285
Commercial		1,977,477			1,958,189			1,929,766			1,912,235			1,875,857
Consumer and other		21,347			22,257			23,374			24,697			22,900
		2,952,775			2,994,130			3,004,242			3,011,775			2,969,106
Net unamortized fees and costs		(2,661	)		(2,492	)		(2,552	)		(2,887	)		(2,749	)
Total loans	$	2,950,114		$	2,991,638		$	3,001,690		$	3,008,888		$	2,966,357
Less: allowance for credit losses		(30,530	)		(30,523	)		(30,525	)		(30,515	)		(30,539	)
Net loans	$	2,919,584		$	2,961,115		$	2,971,165		$	2,978,373		$	2,935,818

CREDIT QUALITY
Pass	$	2,931,300		$	2,952,824		$	2,952,015		$	2,973,103		$	2,958,318
Watch		7,112			41,306			52,227			38,672			10,788
Substandard		14,363			—			—			—			—
Doubtful		—			—			—			—			—
Total loans	$	2,952,775		$	2,994,130		$	3,004,242		$	3,011,775		$	2,969,106

DEPOSITS
Noninterest-bearing demand	$	553,660		$	511,013		$	540,358		$	512,869		$	521,990
Interest-bearing demand		506,574			489,990			577,814			448,731			461,207
Savings and money market - non-brokered		1,705,057			1,731,835			1,739,790			1,677,543			1,749,049
Money market - brokered		100,450			86,304			99,718			121,849			98,877
Total nonmaturity deposits		2,865,741			2,819,142			2,957,680			2,760,992			2,831,123
Time - non-brokered		469,159			485,658			455,944			462,542			451,463
Time - brokered		10,000			30,172			54,846			82,983			109,407
Total time deposits		479,159			515,830			510,790			545,525			560,870
Total deposits	$	3,344,900		$	3,334,972		$	3,468,470		$	3,306,517		$	3,391,993

BORROWINGS
Subordinated notes, net	$	80,287		$	80,221		$	80,156		$	80,090		$	80,024
Federal Home Loan Bank advances		270,000			270,000			270,000			270,000			270,000
Long-term debt		23,750			25,000			26,250			38,986			40,236
Total borrowings	$	374,037		$	375,221		$	376,406		$	389,076		$	390,260

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—		$	—		$	—
Common stock		3,000			3,000			3,000			3,000			3,000
Additional paid-in capital		37,312			36,553			37,231			36,473			35,773
Retained earnings		307,408			300,596			294,259			291,069			285,990
Accumulated other comprehensive loss		(66,678	)		(69,406	)		(68,505	)		(75,409	)		(83,833	)
Total stockholders’ equity	$	281,042		$	270,743		$	265,985		$	255,133		$	240,930

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2026		March 31, 2026		December 31, 2025			September 30, 2025		June 30, 2025
Interest income:
Loans, including fees	$	42,031	$	40,946	$	41,992		$	42,198	$	41,666
Securities:
Taxable		2,097		2,143		2,355			2,643		2,685
Tax-exempt		636		638		677			739		742
Deposits with banks		2,130		2,047		2,808			2,087		2,847
Securities purchased under agreements to resell		1,580		1,617		1,370			1,258		22
Total interest income		48,474		47,391		49,202			48,925		47,962
Interest expense:
Deposits		19,184		19,261		21,112			22,539		22,676
Subordinated notes		1,110		1,104		1,109			1,107		1,104
Federal Home Loan Bank advances		2,274		2,244		2,316			2,292		2,259
Long-term debt		385		397		459			486		504
Total interest expense		22,953		23,006		24,996			26,424		26,543
Net interest income		25,521		24,385		24,206			22,501		21,419
Credit loss expense		—		—		—			—		—
Net interest income after credit loss expense		25,521		24,385		24,206			22,501		21,419
Noninterest income:
Service charges on deposit accounts		476		508		493			491		486
Debit card interchange income		514		472		493			477		478
Trust services		1,048		1,010		964			894		801
Increase in cash value of bank-owned life insurance		313		308		317			308		295
Realized securities losses, net		—		—		(3,959	)		—		—
Other income		245		256		800			333		350
Total noninterest income (loss)		2,596		2,554		(892	)		2,503		2,410
Noninterest expense:
Salaries and employee benefits		7,987		7,632		7,579			7,457		7,343
Occupancy and equipment		2,006		2,006		2,083			2,090		2,034
Technology and software		822		774		789			794		791
Data processing		545		596		673			663		643
FDIC insurance		444		473		475			637		670
Professional fees		298		278		297			303		303
Other expenses		1,665		1,706		1,833			1,606		1,701
Total noninterest expense		13,767		13,465		13,729			13,550		13,485
Income before income taxes		14,350		13,474		9,585			11,454		10,344
Income taxes		3,277		2,902		2,160			2,140		2,365
Net income	$	11,073	$	10,572	$	7,425		$	9,314	$	7,979

Basic earnings per common share	$	0.65	$	0.62	$	0.44		$	0.55	$	0.47
Diluted earnings per common share	$	0.64	$	0.61	$	0.43		$	0.55	$	0.47


WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Six Months Ended
CONSOLIDATED STATEMENTS OF INCOME	June 30, 2026		June 30, 2025
Interest income:
Loans, including fees	$	82,977	$	82,654
Securities:
Taxable		4,240		5,473
Tax-exempt		1,274		1,485
Deposits with banks		4,177		4,464
Securities purchased under agreements to resell		3,197		22
Total interest income		95,865		94,098
Interest expense:
Deposits		38,445		44,099
Subordinated notes		2,214		2,209
Federal Home Loan Bank advances		4,518		4,494
Long-term debt		782		1,022
Total interest expense		45,959		51,824
Net interest income		49,906		42,274
Credit loss expense		—		—
Net interest income after credit loss expense		49,906		42,274
Noninterest income:
Service charges on deposit accounts		984		957
Debit card interchange income		986		924
Trust services		2,058		1,578
Increase in cash value of bank-owned life insurance		621		577
Other income		501		617
Total noninterest income		5,150		4,653
Noninterest expense:
Salaries and employee benefits		15,619		14,347
Occupancy and equipment		4,012		3,997
Technology and software		1,596		1,577
Data processing		1,141		1,260
FDIC insurance		917		1,257
Professional fees		576		611
Other expenses		3,371		3,499
Total noninterest expense		27,232		26,548
Income before income taxes		27,824		20,379
Income taxes		6,179		4,558
Net income	$	21,645	$	15,821

Basic earnings per common share	$	1.27	$	0.94
Diluted earnings per common share	$	1.26	$	0.93

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

(in thousands)	For the Quarter Ended															For the Six Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			June 30, 2026			June 30, 2025
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	25,521		$	24,385		$	24,206		$	22,501		$	21,419		$	49,906		$	42,274
Tax-equivalent adjustment⁽¹⁾		75			72			70			61			59			147			125
Net interest income on a FTE basis (non-GAAP)		25,596			24,457			24,276			22,562			21,478			50,053			42,399
Average interest-earning assets		3,820,041			3,821,463			3,893,827			3,790,154			3,799,081			3,820,748			3,758,487
Net interest margin on a FTE basis (non-GAAP)		2.69	%		2.59	%		2.47	%		2.36	%		2.27	%		2.64	%		2.27	%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	25,596		$	24,457		$	24,276		$	22,562		$	21,478		$	50,053		$	42,399
Noninterest income		2,596			2,554			(892	)		2,503			2,410			5,150			4,653
Adjustment for realized securities losses, net		—			—			3,959			—			—			—			—
Adjustment for losses on disposal of premises and equipment, net		28			2			—			—			—			30			8
Adjusted income		28,220			27,013			27,343			25,065			23,888			55,233			47,060
Noninterest expense		13,767			13,465			13,729			13,550			13,485			27,232			26,548
Efficiency ratio on an adjusted and FTE basis (non-GAAP)⁽²⁾		48.78	%		49.85	%		50.21	%		54.06	%		56.45	%		49.31	%		56.41	%

(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.

(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.

For more information contact:

Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766