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Bank OZK (OZK) Q2 2026 Earnings Call July 22, 2026 8:30 AM EDT

Company Participants

Jay Staley
George Gleason - Chairman & CEO
Jake Munn - President of Corporate & Institutional Banking
Paschall Hamblen - President
Tim Hicks - Chief Financial Officer

Conference Call Participants

Stephen Scouten - Piper Sandler & Co., Research Division
Matt Olney - Stephens Inc., Research Division
Manan Gosalia - Morgan Stanley, Research Division
Catherine Mealor - Keefe, Bruyette, & Woods, Inc., Research Division
Brian Martin - Brean Capital, LLC, Research Division
Timur Braziler - UBS Investment Bank, Research Division
Sun Young Lee - TD Cowen, Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Bank OZK Second Quarter 2026 Earnings Conference Call. [Operator Instructions].

Please be advised that today's conference is being recorded.

I would like to turn the conference over to Jay Staley, Managing Director of Investor Relations and Corporate Development. Please go ahead.

Jay Staley

Good morning. I'm Jay Staley, Managing Director of Investor Relations and Corporate Development for Bank OZK. Thank you for joining our call this morning and participating in our question-and-answer session.

In today's Q&A session, we may make forward-looking statements about our expectations, estimates and outlook for the future. Please refer to our earnings release, management comments, financial supplement and other public filings for more information on the various factors and risks that may cause actual results or outcomes to vary from those projected in or implied by such forward-looking statements.

Joining me on the call to take your questions are George Gleason, Chairman and CEO; Brannon Hamblen, President; Tim Hicks, Chief Financial Officer; and Jake Munn, President, Corporate and Institutional Banking.

We'll now open up the lines for your questions. Let me now ask our operator, Michelle, to remind our listeners how to queue in for questions.

Question-and-Answer Session

Operator

Nuclear energy demand is on the rise, driven by the massive power needs of artificial intelligence (AI) data centers. Because nuclear power possesses high power density and provides reliable, 24/7 baseload energy, it is increasingly becoming a top choice among major hyperscalers.

In the nuclear energy industry, innovative companies like NuScale Power (SMR -0.57%) have the potential to reimagine nuclear energy deployment with their small modular reactors. Meanwhile, established utilities such as Constellation Energy (CEG +4.66%), with their extensive nuclear fleet, stand ready to meet today's power challenges.

If you're looking to diversify your portfolio with nuclear energy stocks, there are a few key things you need to consider when considering an investment between NuScale Power and Constellation Energy right now.

Image source: Getty Images.

Next-generation data centers need nuclear power Modern data centers require massive amounts of energy. Training large language models requires running thousands of high-performance graphical processing units (GPUs) for months on end, while AI queries provide steady demand for AI-generated answers. The emergence of autonomous AI agents is another massive driver of non-stop loops that require continuous, reliable operation of AI data centers.

To meet growing AI demand, data center chips are packed into compact clusters that handle parallel computing across billions of variables. Because servers generate significant heat, they also require large liquid-cooling systems that consume substantial energy.

According to Goldman Sachs, U.S. data center power demand could spike to 66 GW and account for up to 8.5% of U.S. peak summer demand by 2027. Bank of America analysts forecast that over the next five years, data centers could add 125 GW of new U.S. electric load, representing a compound annual growth rate of electricity demand of 4.1%.

Hyperscalers like Alphabet, Amazon, Meta Platforms, and Microsoft need reliable energy while also meeting their long-term carbon-reduction goals. These data centers can't afford interruptions, which means intermittent wind and solar power need an extra boost, which is where nuclear energy comes into play.

Over the last couple of years, hyperscalers have invested in small modular reactors (SMRs) and nuclear plant restarts to meet these massive future energy demands.

NuScale's small modular reactors could change how nuclear energy is deployed NuScale Power is uniquely positioned in the SMR space, as it is the only company with a Standard Design Approval (SDA) from the Nuclear Regulatory Commission for its SMR technology. The company has an SDA for its 50-megawatt (MW) and 77 MW modules, giving it a crucial first-mover advantage in the advanced nuclear reactor space, where NRC approval can be a long and drawn-out process.

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The company has one approved project in Romania, where it will look to install 462 MWe using six modules at a former coal plant site. The company received a Final Investment Decision from shareholders and the Romanian government. As part of the deal, NuScale will install one 77 MW module to ensure it is functional, with the remaining five modules contingent on the module proving operational. Operations for this power plant are planned to start in 2033.

Beyond this, NuScale hopes to deploy a massive 6 GW of its power modules with the Tennessee Valley Authority (TVA). The company is working closely with ENTRA1 to secure a firm power purchase agreement and hopes to finalize a deal by the end of the year.

Constellation Energy operates the biggest nuclear energy fleet in the U.S. While NuScale is an up-and-coming nuclear energy company with a long timeline until its plants begin operations, Constellation Energy is an established utility company with a massive nuclear energy fleet. Constellation controls 22 GW of U.S. nuclear generation capacity and operates 21 commercial reactors at 12 locations.

Constellation has secured major deals over the past few years. In 2024, the company announced a 20-year power purchase agreement (PPA) with Microsoft, which involves the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1. The Crane Clean Energy Center will come online in 2028.

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In June of last year, Constellation signed a 20-year power purchase agreement with Meta Platforms to provide 1,121 MW of nuclear energy, beginning in June 2027. As part of this agreement, Constellation will relicense and expand its Clinton nuclear facility located in Illinois.

The company also continues to build on its massive energy platform. On July 16, Constellation's venture capital arm, Constellation Technology Ventures, invested in Blue Energy, which builds prefabricated modular nuclear power plant structures off-site and ships them to their final location. The company uses phased delivery, meaning it deploys gas turbines first, which will eventually transition to nuclear plants when reactor installations are completed.

Which stock is a better buy today? NuScale Power has a first-mover advantage with its NRC-approved SMRs. However, the company faces risks from the Department of Energy's Reactor Pilot Program, in which the DOE is leveraging its authority to reduce red tape and fast-track the testing and licensing of new reactor technologies by competitors.

For investors seeking explosive upside potential, NuScale could be an appealing buy, but it also carries massive risk, as it needs to secure additional contracts and prove it can successfully deploy and commercialize its SMR technology over the coming decade.

In contrast, Constellation Energy has an established fleet of nuclear capacity and is well positioned to benefit from booming energy demand in the near term, making it the better stock for investors looking to gain exposure to the growing nuclear energy industry right now.

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SYRACUSE, N.Y.--(BUSINESS WIRE)--Community Financial System, Inc. (NYSE: CBU) (the “Company”) announced that it has declared a quarterly cash dividend of $0.49 per share on its common stock, which represents a $0.02, or 4.26%, increase and an annualized yield of 2.89% based on the closing share price of $67.82 on July 21, 2026. The dividend will be payable on October 13, 2026 to Shareholders of record as of September 15, 2026.

President and Chief Executive Officer, Dimitar Karaivanov, commented, “Given the Company’s strong performance in 2026, the Board of Directors is pleased to provide its Shareholders with a larger increase to the dividend this year, and has raised the quarterly dividend from $0.47 per share of common stock to a quarterly dividend of $0.49 per share of common stock. This increase emphasizes our commitment to sustained shareholder returns. Our annual dividend increases over the last 34 years are supported by our strong balance sheet and cash flow generation that provide us with flexibility to return cash to our Shareholders while investing in our long-term future.”

About Community Financial System, Inc.

Community Financial System, Inc. is a diversified financial services company that is focused on four main business lines – banking services, employee benefit services, insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest banking institutions with over $17 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, Western Massachusetts and Southern New Hampshire. The Company’s Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Company’s OneGroup NY, Inc. subsidiary is a top 68 U.S. insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Nottingham Financial Group operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol CBU. For more information about the Company and each of its four main business lines visit https://ir.cfsi.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of CBU’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from its expectations: the macroeconomic and other challenges and uncertainties related to or resulting from current and future economic and market conditions, including the effects on CRE and housing or vehicle prices, unemployment rates, high inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters, tariffs and global economic growth; fiscal and monetary policies of the Federal Reserve Board; the potential adverse effects of unusual and infrequently occurring events; litigation and actions of regulatory authorities; management’s estimates and projections of interest rates and interest rate policies; the effect of changes in the level of checking, savings, or money market account deposit balances and other factors that affect net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; ability to contain costs in inflationary conditions; the effect on financial market valuations on CBU’s fee income businesses, including its employee benefit services, wealth management services, and insurance services businesses; the successful integration of operations of its acquisitions and performance of new branches; competition; changes in legislation or regulatory requirements, including capital requirements; and the timing for receiving regulatory approvals and completing merger and acquisition transactions. For more information about factors that could cause actual results to differ materially from CBU’s expectations, refer to its annual, periodic and other reports filed with the Securities and Exchange Commission (“SEC”), including the discussion under the “Risk Factors” section of such reports filed with the SEC and available on CBU’s website at https://ir.cfsi.com and on the SEC’s website at https://sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and CBU undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

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PRINCETON, N.J.--(BUSINESS WIRE)--Princeton Bancorp, Inc. (the “Company”) (NASDAQ - BPRN), the bank holding company for The Bank of Princeton (the “Bank”), announced that its Board of Directors, at a meeting held on July 22, 2026, declared a cash dividend of $0.35 per share of the common stock of the Company. This dividend will be paid on August 28, 2026, to shareholders of record at the close of business on August 5, 2026. “This dividend reflects the Board of Directors continuing commitment in providing a return to shareholders,” stated Edward Dietzler, President and CEO.

Princeton Bancorp, Inc. Announces Declaration of a $0.35 Quarterly Cash Dividend

Share The paying of cash dividends on a quarterly basis is subject to a determination and declaration each quarter by its Board of Directors, which will take into account a number of factors, including the financial condition of the Company, and any applicable legal and regulatory restrictions on the payment of dividends by the Company and the Bank. If paid, such dividends may be reduced or eliminated in future periods.

About Princeton Bancorp, Inc. and The Bank of Princeton

Princeton Bancorp, Inc. is the holding company for The Bank of Princeton, a community bank founded in 2007. The Bank is a New Jersey state-chartered commercial bank with 29 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Burlington, Chesterfield, Cherry Hill, Cranbury, Cream Ridge, Deptford, Fort Lee, Hamilton, Kingston, Lakewood, Lambertville, Lawrenceville, Medford, Monroe, Moorestown, New Brunswick, Palisades Park, Pennington, Piscataway, Princeton Junction, Quakerbridge, Sicklerville, Voorhees, and Woodbury. There are also five branches in the Philadelphia, Pennsylvania area and two in the New York City metropolitan area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation.

Forward-Looking Statements

The Company may from time to time make written or oral “forward-looking statements,” including statements contained in the Company’s filings with the Securities and Exchange Commission, in its reports to shareholders and in other communications by the Company (including this press release), which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Company’s control). The most significant factors that could cause future results to differ materially from those anticipated by our forward-looking statements include the potential impact of the global impact of foreign military conflicts in Iran, the Middle East and elsewhere, any future Federal budget stalemates in Congress, higher tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause an increase in loan delinquencies, a reduction in financial transactions and business activities including decreased deposits and reduced loan originations, difficulties in managing liquidity in a rapidly changing and unpredictable market, and supply chain disruptions. Other factors that could cause actual results to differ materially from those indicated by forward-looking statements include, but are not limited to, the following factors: the global impact of foreign military conflicts; the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area; the strength of the United States economy in general and the strength of the local economies in which the Company and Bank conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Company and the Bank; the timing and nature of the regulatory response to any applications filed by the Company and the Bank; developments in technology, such as artificial intelligence, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our customers' expectations for convenience and security; other acquisitions; changes in consumer spending and saving habits; those risks under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025; and the success of the Company at managing the risks involved in the foregoing.

The Company cautions that the foregoing list of important factors is not exclusive. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as required by applicable law or regulation.

HARRISBURG, Pa.--(BUSINESS WIRE)--Mid Penn Bancorp, Inc. (NASDAQ: MPB) ("Mid Penn"), the parent company of Mid Penn Bank (the "Bank") and MPB Financial Services, LLC, today reported net income available to common shareholders ("earnings") of $21.7 million, or $0.86 per basic common share and $0.85 per diluted common share, for the quarter ended June 30, 2026, compared to $4.8 million, or $0.22 per basic and diluted common share, for the second quarter of 2025. Earnings exceeded the consensus analyst estimate of $0.79 per diluted common share for the second quarter of 2026. Mid Penn also declared a quarterly cash dividend of $0.23 per common share, up 4.55% from the prior quarter.

Key Highlights of the Second Quarter of 2026:

Net income available to common shareholders for the second quarter of 2026 was $21.7 million, an increase of $16.9 million or 355.5% compared to the second quarter of 2025, and an increase of $13.0 million, or 149.2%, compared to the first quarter of 2026. The year-over-year increase reflects the William Penn and 1st Colonial acquisitions, while the linked-quarter comparison reflects a full quarter of 1st Colonial results. Earnings per basic common share for the second quarter of 2026 were $0.86 and $0.85 per diluted common share, an increase from $0.22 per both basic and diluted common share in the second quarter of 2025. Net interest margin increased to 4.06% for the quarter ended June 30, 2026, from 3.80% for the first quarter of 2026, and 3.44% for the second quarter of 2025. This represents increases of 26 and 62 basis points ("bps") compared to the first quarter of 2026 and second quarter of 2025, respectively. The increase from the second quarter of 2025 was driven by higher investment securities yields, higher loan yields, and lower funding costs. Loan balances increased $107.2 million, or 7.8% (annualized), during the second quarter of 2026 compared to the first quarter of 2026. Total loans increased $784.3 million, or 16.2%, to $5.6 billion at June 30, 2026, compared to $4.8 billion at June 30, 2025. Excluding the $597.5 million of loans acquired in the 1st Colonial acquisition, organic loan growth was $186.8 million from June 30, 2025. Deposits decreased $17.7 million, or 1.2% (annualized), during the second quarter of 2026 compared to the first quarter of 2026. Total deposits increased $503.6 million, or 9.2%, to $6.0 billion from June 30, 2025. Excluding $747.1 million of deposits from the 1st Colonial acquisition, organic deposits decreased $243.4 million, or 17.9% (annualized), from June 30, 2025, primarily reflecting the planned reduction of approximately $225 million in brokered certificates of deposit during 2025. The core efficiency ratio(1) improved to 59.82% in the second quarter of 2026, compared to 63.52% in the first quarter of 2026, and 62.56% in the second quarter of 2025. This improvement was driven by higher net interest income and disciplined management of noninterest expense following the 1st Colonial and William Penn acquisitions. Book value per common share improved to $35.62 as of June 30, 2026, compared to $35.08 as of March 31, 2026, and $33.85 as of June 30, 2025. Tangible book value per common share (1) was $28.18 as of June 30, 2026, compared to $27.56 and $27.22 as of March 31, 2026 and June 30, 2025, respectively. Mid Penn returned capital to shareholders through the repurchase of 76,000 shares of common stock during the second quarter of 2026. As a result of the foregoing, the Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on August 14, 2026, to shareholders of record as of August 3, 2026. Chair, President and CEO Rory G. Ritrievi provided the following statement:

"We are pleased to share our second quarter operating performance with our shareholders. Results include earnings above consensus expectations, meaningful organic loan growth, healthy net interest margin expansion, a reduction in the efficiency ratio to below 60%, stable asset quality, and improvements in both book value and tangible book value.

Comparisons to the second quarter of 2025 and the first quarter of 2026 are somewhat challenging, as both previous periods were impacted by merger and acquisition-related costs, as well as significant balance sheet expansion. However, when measured against analyst expectations and our own internal expectations, second quarter performance was favorable across nearly every key metric.

During the quarter, we were also active in common stock repurchases, placing 76,000 shares into treasury and returning approximately $2.5 million to the shareholders.

In light of this solid second quarter performance, the Board has also elected to increase the quarterly dividend by 4.55%, from $0.22 per share in the first quarter to $0.23 per share in the second quarter.

We look forward to building on this momentum through the remainder of 2026."

Net Interest Income

For the three months ended June 30, 2026, net interest income was $65.3 million, compared to net interest income of $55.3 million for the three months ended March 31, 2026, and $48.2 million for the three months ended June 30, 2025. Interest income for the quarter ended June 30, 2026, includes $4.3 million of loan accretion income related to fair value marks on acquired loans, which are accreted into interest income over the expected life of the assets. The tax-equivalent net interest margin(1) for the three months ended June 30, 2026 was 4.06% compared to 3.80% and 3.44% for the first quarter of 2026 and second quarter of 2025, respectively, representing a 26 bp increase from the first quarter of 2026, and a 62 bp increase compared to the same period in 2025.

The yield on interest-earning assets increased to 5.99% for the quarter ended June 30, 2026, from 5.75% and 5.69%, for the three months ended March 31, 2026, and June 30, 2025, respectively. The increase from the first quarter of 2026 was primarily due to higher yields on loans, including the impact of accretion income on acquired loans.

For the six months ended June 30, 2026, net interest income increased 32.9% to $120.5 million compared to net interest income of $90.7 million for the same period of 2025. The increase was primarily driven by a $26.4 million increase in interest income on loans and a $5.0 million increase in interest income on investment securities, compared to the same period in 2025.

Average Balances

Average balances continue to be impacted by the 1st Colonial acquisition given that the acquisition closed on February 27, 2026. Day one increases in loans, total assets, deposits, and total liabilities were $581.8 million, $842.5 million, $746.9 million, and $751.7 million, respectively.

Average loans increased $504.9 million to $5.6 billion for the quarter ended June 30, 2026, compared to $5.1 billion for the quarter ended March 31, 2026, and increased $863.5 million compared to $4.7 billion for the quarter ended June 30, 2025.

Average deposits were $5.9 billion for the second quarter of 2026, an increase of $545.9 million, or 10.1%, from $5.4 billion in the first quarter of 2026 and an increase of $779.7 million, or 15.1%, from $5.2 billion for the second quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions, and organic growth. The average cost of deposits was 2.07% for the second quarter of 2026, representing a 2 bp decrease from the first quarter of 2026, and a 34 bp decrease from the second quarter of 2025.

Cost of funds decreased to 2.09%, compared to 2.12% in the first quarter of 2026, primarily reflecting the repricing of higher-cost time deposits as well as a favorable shift in the funding mix, including an $82.8 million increase in noninterest-bearing deposits.

Asset Quality

The total provision for credit losses, including the benefit for credit losses on off-balance sheet credit exposures, was $528 thousand for the three months ended June 30, 2026, compared to the provision for credit losses of $1.6 million for the three months ended March 31, 2026, and a provision for credit losses of $2.3 million for the three months ended June 30, 2025. The quarter-over-quarter change in the provision for credit losses was primarily driven by qualitative adjustments to the CRE owner-occupied portfolio and improved macroeconomic assumptions, offset by an increase in reserve on one individually analyzed C&I loan. Credit quality remained stable during the quarter, supported by minimal net charge-offs and continued disciplined credit risk management. Net charge-offs for the three months ended June 30, 2026, were $22 thousand, or approximately 0.0004% of total average loans.

The provision for credit losses on loans was $2.2 million for the six months ended June 30, 2026, a decrease of $361 thousand compared to the provision for credit losses of $2.6 million for the six months ended June 30, 2025. The decrease for the six months ended June 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $29 thousand for the three months ended June 30, 2026, compared to the provision of $24 thousand for the three months ended June 30, 2025. The benefit for credit losses on off-balance sheet credit exposures was $83 thousand for the six months ended June 30, 2026, compared to the provision of $4 thousand for the six months ended June 30, 2025.

Allowance for credit losses - loans was 0.74%, 0.75%, and 0.78% of loans, net of unearned income at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Total nonperforming assets were $36.8 million at June 30, 2026, compared to nonperforming assets of $38.1 million at March 31, 2026, and $28.0 million at June 30, 2025. The decrease during the second quarter of 2026 was primarily driven by the payoff of one commercial real estate loan with a balance of $1.3 million.

Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.71% at June 30, 2026, compared to 0.70% and 0.58% at March 31, 2026 and June 30, 2025, respectively.

Capital

Shareholders’ equity increased $14.5 million, or 1.6%, to $901.9 million as of June 30, 2026, from $887.4 million as of March 31, 2026. Retained earnings increased $16.1 million, or 7.2%, from $222.2 million as of March 31, 2026 to $238.2 million as of June 30, 2026. Regulatory capital ratios for Mid Penn and the Bank indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at June 30, 2026. Additionally, Mid Penn declared $5.6 million in dividends during the second quarter of 2026.

On April 21, 2026, Mid Penn’s Board of Directors authorized an increase to its treasury stock repurchase program ("the Program"), increasing the authorized repurchase amount to $50.0 million of Mid Penn’s outstanding common stock through April 30, 2027. During the second quarter of 2026, Mid Penn repurchased 76,000 shares under the program. As of June 30, 2026, Mid Penn repurchased a total of 595,891 shares of common stock at an average price of $24.82 per share under the Program.

Noninterest Income

For the three months ended June 30, 2026, noninterest income totaled $10.6 million, an increase of $1.0 million, or 10.2%, from $9.6 million for the first quarter of 2026. The increase was primarily driven by an $805 thousand increase in mortgage banking income, a $336 thousand increase in earnings from the cash surrender value of life insurance, and a $230 thousand increase in fiduciary and wealth management income, partially offset by a $415 thousand decrease in other noninterest income.

For the six months ended June 30, 2026, noninterest income totaled $20.2 million, an increase of $8.8 million, or 77.4%, compared to noninterest income of $11.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $5.0 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $981 thousand increase in earnings from the cash surrender value of life insurance, and a $2.0 million increase in other noninterest income, including a $653 thousand increase in insurance commissions, and a $558 thousand increase in death benefits received.

Noninterest Expense

For the three months ended June 30, 2026, noninterest expense totaled $47.8 million, a decrease of $4.2 million, or 8.1%, compared to $52.0 million in the first quarter of 2026. The decrease was primarily driven by a $7.6 million decrease in merger and acquisition expenses, partially offset by a $3.6 million increase in salaries and employee benefits, resulting from the acquisition of 1st Colonial.

For the six months ended June 30, 2026, noninterest expense totaled $99.7 million, an increase of $21.3 million, or 27.1%, compared to $78.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $13.2 million increase in salaries and benefits, reflecting additional staff from the 1st Colonial, Cumberland Advisors, and William Penn acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $1.9 million, $1.5 million, and $2.0 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $1.9 million. These increases were partially offset by a $3.5 million decrease in merger and acquisition expenses compared to the same period of 2025.

The core efficiency ratio(1) was 59.8% for the second quarter of 2026, compared to 63.5% for the first quarter of 2026 and 62.6% for the second quarter of 2025. The linked-quarter improvement was primarily driven by growth in net interest income, which outpaced the increase in core noninterest expense associated with a full quarter of 1st Colonial operations. Mid Penn continues to evaluate opportunities to achieve cost synergies as integration progresses.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements, the possibility that the anticipated benefits of a transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid Penn.

For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the SEC, including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law.

SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):

(Dollars in thousands, except per share data)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Ending Balances:

Investment securities

$

878,026

$

830,499

$

769,045

$

781,888

$

769,211

Loans, net of unearned income

5,617,169

5,509,940

4,862,838

4,821,134

4,832,898

Total assets

7,062,910

6,964,809

6,133,896

6,267,349

6,354,543

Total deposits

5,953,297

5,970,967

5,214,663

5,342,720

5,449,664

Shareholders' equity

901,907

887,405

814,058

796,323

775,708

Average Balances:

Investment securities

843,317

783,768

774,962

782,020

652,105

Loans, net of unearned income

5,588,129

5,083,240

4,844,308

4,804,163

4,724,638

Total assets

6,996,021

6,393,011

6,202,310

6,385,751

6,036,045

Total deposits

5,939,499

5,393,592

5,290,598

5,468,144

5,159,754

Shareholders' equity

892,092

845,553

803,093

783,547

670,491

Three Months Ended

Income Statement:

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Net interest income

$

65,280

$

55,250

$

54,751

$

53,629

$

48,206

Provision/(benefit) for credit losses (4)

528

1,594

(839

)

(434

)

2,269

Noninterest income

10,586

9,604

7,277

8,183

6,143

Noninterest expense

47,767

51,959

35,848

37,982

47,798

Income before provision for income taxes

27,571

11,301

27,019

24,264

4,282

Provision/(benefit) for income taxes

5,880

2,595

7,572

5,967

(480

)

Net income available to shareholders

21,691

8,706

19,447

18,297

4,762

Net income excluding non-recurring income and expenses (1)

22,019

15,294

19,224

17,772

15,074

Per Share:

Basic earnings per common share

$

0.86

$

0.36

$

0.84

$

0.80

$

0.22

Diluted earnings per common share

0.85

0.36

0.83

0.79

0.22

Cash dividends declared

0.22

0.22

0.22

0.20

0.20

Book value per common share

35.62

35.08

35.32

34.56

33.85

Tangible book value per common share (1)

28.18

27.56

28.76

27.96

27.22

Asset Quality:

Net charge-offs to average loans (3)

0.002

%

0.084

%

0.038

%

0.008

%

0.069

%

Non-performing loans to total loans

0.51

0.54

0.47

0.37

0.38

Non-performing asset to total loans and other real estate

0.65

0.69

0.63

0.57

0.58

Non-performing asset to total assets

0.52

0.55

0.50

0.44

0.44

ACL on loans to total loans

0.74

0.75

0.74

0.77

0.78

ACL on loans to nonperforming loans

146.52

138.68

157.25

207.92

206.49

Profitability:

Return on average assets (3)

1.24

%

0.55

%

1.24

%

1.14

%

0.32

%

Return on average equity (3)

9.75

4.18

9.61

9.26

2.85

Return on average tangible common equity (1) (3)

13.20

5.82

12.29

11.95

4.05

Tax-equivalent net interest margin

4.06

3.80

3.79

3.60

3.44

Core Efficiency ratio (1)

59.82

63.52

55.26

58.80

62.56

Capital Ratios:

Tier 1 Capital (to Average Assets) (2)

10.7

%

11.4

%

11.0

%

10.4

%

10.6

%

Common Tier 1 Capital (to Risk Weighted Assets) (2)

12.8

12.8

13.5

13.9

12.8

Tier 1 Capital (to Risk Weighted Assets) (2)

12.8

12.8

13.5

13.9

12.8

Total Capital (to Risk Weighted Assets) (2)

13.5

13.6

14.3

15.5

14.4

(1)

  Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document.

(2)

  Regulatory capital ratios as of June 30, 2026 are preliminary estimates while prior period ratios are actual.

(3)

  Annualized ratio

(4)

  Includes $2.3 million related to non-PCD loans acquired in the William Penn acquisition on April 30, 2025. This amount reflects accounting guidance in effect prior to Mid Penn's adoption of ASU 2025-08, under which the allowance for certain purchased loans was recognized through provision expense.

CONSOLIDATED BALANCE SHEETS (Unaudited):

(Dollars in thousands, except share data)

Jun. 30, 2026

Mar. 31, 2026

Dec. 31, 2025

Sep. 30, 2025

Jun. 30, 2025

ASSETS

Cash and due from banks

$

55,168

$

60,967

$

46,695

$

18,013

$

52,671

Interest-bearing balances with other financial institutions

15,367

19,383

29,178

24,736

22,828

Federal funds sold

16,111

60,840

23,045

214,420

261,353

Total cash and cash equivalents

86,646

141,190

98,918

257,169

336,852

Investment Securities:

Held to maturity, at amortized cost

372,866

340,957

347,285

354,094

364,029

Available for sale, at fair value

499,773

484,130

416,314

427,352

404,745

Equity securities available for sale, at fair value

5,387

5,412

5,446

442

437

Loans held for sale

16,595

16,554

3,668

6,085

6,101

Loans, net of unearned income

5,617,169

5,509,940

4,862,838

4,821,134

4,832,898

Less: Allowance for credit losses

(41,640

)

(41,105

)

(36,091

)

(37,337

)

(37,615

)

Net loans

5,575,529

5,468,835

4,826,747

4,783,797

4,795,283

Premises and equipment, net

49,236

49,611

48,742

48,491

47,732

Operating lease right of use asset

15,872

16,803

15,169

15,700

15,026

Finance lease right of use asset

2,278

2,323

2,368

2,413

2,458

Cash surrender value of life insurance

117,515

116,474

95,351

95,015

94,770

Restricted investment in bank stocks

15,720

10,081

7,576

6,737

7,110

Accrued interest receivable

33,391

32,958

29,640

29,705

28,546

Deferred income taxes

23,227

23,798

21,416

27,475

35,333

Goodwill

157,121

157,121

136,620

136,620

135,473

Core deposit and other intangibles, net

31,173

33,013

14,657

15,586

16,531

Foreclosed assets held for sale

8,390

8,420

7,806

9,346

9,816

Other assets

52,191

57,129

56,173

51,322

54,301

Total Assets

$

7,062,910

$

6,964,809

$

6,133,896

$

6,267,349

$

6,354,543

LIABILITIES & SHAREHOLDERS’ EQUITY

Deposits:

Noninterest-bearing demand

$

973,371

$

933,497

$

834,013

$

836,374

$

857,072

Interest-bearing transaction accounts

3,299,576

3,357,497

2,829,175

2,852,361

2,770,877

Time

1,680,350

1,679,973

1,551,475

1,653,985

1,821,715

Total Deposits

5,953,297

5,970,967

5,214,663

5,342,720

5,449,664

Short-term borrowings

137,500

31,500

20,833

—

—

Long-term debt

2,902

3,021

23,139

23,258

23,374

Subordinated debt and trust preferred securities

—

—

—

37,149

37,303

Operating lease liability

16,275

17,186

15,405

15,973

15,342

Accrued interest payable

12,175

12,195

10,942

16,460

13,421

Other liabilities

38,854

42,535

34,856

35,466

39,731

Total Liabilities

6,161,003

6,077,404

5,319,838

5,471,026

5,578,835

Shareholders' Equity:

Common stock, par value $1.00 per share; 40.0 million shares

25,924

25,817

23,567

23,551

23,419

Additional paid-in capital

661,903

659,883

589,421

588,405

584,291

Retained earnings

238,224

222,154

219,685

205,320

191,574

Accumulated other comprehensive loss

(9,142

)

(8,157

)

(6,323

)

(8,907

)

(11,756

)

Treasury stock

(15,002

)

(12,292

)

(12,292

)

(12,046

)

(11,820

)

Total Shareholders’ Equity

901,907

887,405

814,058

796,323

775,708

Total Liabilities and Shareholders' Equity

$

7,062,910

$

6,964,809

$

6,133,896

$

6,267,349

$

6,354,543

CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

Three Months Ended

(Dollars in thousands, except per share data)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

INTEREST INCOME

Loans, including fees

$

88,574

$

76,798

$

76,916

$

76,262

$

72,469

Investment securities:

Taxable

7,558

6,501

6,590

6,614

4,637

Tax-exempt

284

297

320

331

344

Other interest-bearing balances

117

110

135

196

142

Federal funds sold

159

220

1,179

3,463

2,428

Total Interest Income

96,692

83,926

85,140

86,866

80,020

INTEREST EXPENSE

Deposits

30,619

27,848

29,930

32,631

30,981

Short-term borrowings

764

702

5

—

86

Long-term and subordinated debt

29

126

454

606

747

Total Interest Expense

31,412

28,676

30,389

33,237

31,814

Net Interest Income

65,280

55,250

54,751

53,629

48,206

Net provision/(benefit) for credit losses (1)

528

1,594

(839

)

(434

)

2,269

Net Interest Income After Provision for Credit Losses

64,752

53,656

55,590

54,063

45,937

NONINTEREST INCOME

Fiduciary and wealth management

3,891

3,661

1,412

1,340

1,406

ATM debit card interchange

1,169

1,035

1,053

1,019

958

Service charges on deposits

632

636

634

647

652

Mortgage banking

1,119

314

552

1,013

676

Mortgage hedging

113

81

(22

)

50

(7

)

Net gain on sales of SBA loans

27

163

100

—

63

Earnings from cash surrender value of life insurance

1,041

705

609

605

491

Net gain on sales of investment securities

—

—

10

—

—

Other

2,594

3,009

2,929

3,509

1,904

Total Noninterest Income

10,586

9,604

7,277

8,183

6,143

NONINTEREST EXPENSE

Salaries and employee benefits

26,945

23,346

20,026

20,941

20,753

Software licensing and utilization

4,155

3,598

3,406

3,310

3,272

Occupancy, net

2,891

3,253

2,624

2,642

2,365

Equipment

1,684

1,553

1,435

1,248

1,248

Shares tax

822

964

245

1,006

606

Legal and professional fees

2,157

1,688

992

1,070

993

ATM/card processing

689

757

771

557

621

Intangible amortization

1,819

1,300

930

944

744

FDIC assessment

663

800

1,046

422

994

Loss on sale or write-down of foreclosed assets, net

4

491

203

471

—

Merger and acquisition (2)

103

7,723

(39

)

233

11,011

Other

5,835

6,486

4,209

5,138

5,191

Total Noninterest Expense

47,767

51,959

35,848

37,982

47,798

INCOME BEFORE PROVISION FOR INCOME TAXES

27,571

11,301

27,019

24,264

4,282

Provision/(benefit) for income taxes

5,880

2,595

7,572

5,967

(480

)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$

21,691

$

8,706

$

19,447

$

18,297

$

4,762

PER COMMON SHARE DATA:

Basic Earnings Per Common Share

$

0.86

$

0.36

$

0.84

$

0.80

$

0.22

Diluted Earnings Per Common Share

0.85

0.36

0.83

0.79

0.22

Cash Dividends Declared

0.22

0.22

0.22

0.20

0.20

CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited):

Average Balances, Income and Interest Rates on a Taxable Equivalent Basis

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

(Dollars in thousands)

Average
Balance

Interest

Yield/
Rate(2)

Average
Balance

Interest

Yield/
Rate(2)

Average
Balance

Interest

Yield/
Rate(2)

ASSETS:

Interest Bearing Balances

$

19,067

$

117

2.46

%

$

19,647

$

110

2.27

%

$

23,271

$

142

2.45

%

Investment Securities:

Taxable

787,477

7,213

3.67

715,209

6,486

3.68

584,919

4,570

3.13

Tax-Exempt

55,840

284

2.04

68,559

297

1.76

67,186

344

2.05

Total Securities

843,317

7,497

3.57

783,768

6,783

3.51

652,105

4,914

3.02

Federal Funds Sold

11,748

159

5.43

16,994

220

5.25

236,037

2,428

4.13

Loans, Net of Unearned Income

5,588,129

88,574

6.36

5,083,240

76,798

6.13

4,724,638

72,469

6.15

Restricted Investment in Bank Stocks

12,292

345

11.26

10,864

15

0.56

6,945

67

3.87

Total Earning Assets

6,474,553

96,692

5.99

5,914,513

83,926

5.75

5,642,996

80,020

5.69

Cash and Due from Banks

55,360

55,545

50,376

Other Assets

466,108

422,953

342,673

Total Assets

$

6,996,021

$

6,393,011

$

6,036,045

LIABILITIES & SHAREHOLDERS' EQUITY:

Interest-bearing Demand

$

1,660,007

$

6,712

1.62

%

$

1,382,567

$

5,417

1.59

%

$

1,123,130

$

4,954

1.77

%

Money Market

1,243,822

7,838

2.53

1,216,581

7,470

2.49

1,179,295

8,350

2.84

Savings

433,917

711

0.66

363,593

300

0.33

307,634

70

0.09

Time

1,668,054

15,358

3.69

1,579,915

14,661

3.76

1,735,888

17,607

4.07

Total Interest-bearing Deposits

5,005,800

30,619

2.45

4,542,656

27,848

2.49

4,345,947

30,981

2.86

Short term borrowings

79,875

764

3.84

71,111

702

4.00

7,418

86

4.65

Long-term debt

2,886

29

4.03

11,733

126

4.36

23,417

252

4.32

Subordinated debt and trust preferred securities

—

—

—

—

—

—

45,264

495

4.39

Total Interest-bearing Liabilities

5,088,561

31,412

2.48

4,625,500

28,676

2.51

4,422,046

31,814

2.89

Noninterest-bearing Demand

933,699

850,936

813,807

Other Liabilities

81,669

71,022

129,701

Shareholders' Equity

892,092

845,553

670,491

Total Liabilities & Shareholders' Equity

$

6,996,021

$

6,393,011

$

6,036,045

Net Interest Income

$

65,280

$

55,250

$

48,206

Taxable Equivalent Adjustment (1)

231

236

245

Net Interest Income (taxable equivalent basis)

$

65,511

$

55,486

$

48,451

Total Yield on Earning Assets

5.99

%

5.75

%

5.69

%

Cost of funds

2.09

%

2.12

%

2.44

%

Rate on Supporting Liabilities

2.48

2.51

2.89

Average Interest Spread

3.51

3.24

2.80

Tax-Equivalent Net Interest Margin

4.06

3.80

3.44

ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):

(Dollars in thousands)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Allowance for Credit Losses on Loans:

Beginning balance

$

41,105

$

36,091

$

37,337

$

37,615

$

35,838

Allowance for credit losses on loans acquired

—

4,415

—

—

343

Loans Charged off

Commercial real estate

CRE Nonowner Occupied

(2

)

(499

)

(394

)

—

(691

)

CRE Owner Occupied

—

—

(346

)

—

—

Multifamily

—

—

—

—

—

Farmland

—

—

—

—

—

Commercial and industrial

—

—

—

(91

)

(203

)

Construction

Residential Construction

—

—

—

—

—

Other Construction

—

—

—

—

—

Residential mortgage

1-4 Family 1st Lien

—

—

—

—

—

1-4 Family Rental

—

(13

)

—

—

—

HELOC and Junior Liens

(48

)

—

—

—

—

Consumer

(11

)

(641

)

(28

)

(40

)

(15

)

Total loans charged off

(61

)

(1,153

)

(768

)

(131

)

(909

)

Recoveries of loans previously charged off

Commercial real estate

CRE Nonowner Occupied

—

—

294

9

1

CRE Owner Occupied

2

93

—

—

—

Multifamily

—

—

—

—

—

Farmland

—

—

—

—

—

Commercial and industrial

6

—

—

—

3

Construction

Residential Construction

—

—

—

—

—

Other Construction

—

—

—

—

—

Residential mortgage

1-4 Family 1st Lien

3

2

2

3

83

1-4 Family Rental

13

—

—

—

—

HELOC and Junior Liens

—

—

—

—

—

Consumer

15

9

7

28

11

Total loans recovered

39

104

303

40

98

Balance before provision

41,083

39,457

36,872

37,524

35,370

Provision/(benefit) for credit losses - loans (1)

557

1,648

(781

)

(187

)

2,245

Balance, end of quarter

$

41,640

$

41,105

$

36,091

$

37,337

$

37,615

Nonperforming Assets

Total nonaccrual loans

$

28,420

$

29,641

$

22,951

$

17,957

$

18,216

Foreclosed real estate

8,390

8,420

7,806

9,346

9,816

Total nonperforming assets

36,810

38,061

30,757

27,303

28,032

Accruing loans 90 days or more past due

213

—

—

160

—

Total risk elements

$

37,023

$

38,061

$

30,757

$

27,463

$

28,032

RECONCILIATION OF NON-GAAP MEASURES (Unaudited)

Explanatory note: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Mid Penn’s management uses these non-GAAP financial measures in their analysis of Mid Penn’s performance. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is book value. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing tangible book value. Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances or non-deductible portions of the non-GAAP adjustments. Adjusted earnings per common share excludes from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, net of income taxes. For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity. The core efficiency ratio is often used by management to measure its noninterest expense as a percentage of its revenue. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Mid Penn’s results and financial condition as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding Mid Penn’s ongoing operating results. This supplemental presentation should not be construed as an inference that Mid Penn’s future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the tables below.

Tangible Book Value Per Common Share

(Dollars in thousands, except per share data)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Shareholders' Equity

$

901,907

$

887,405

$

814,058

$

796,323

$

775,708

Less: Goodwill

157,121

157,121

136,620

136,620

135,473

Less: Core Deposit and Other Intangibles

31,173

33,013

14,657

15,586

16,531

Tangible Equity

$

713,613

$

697,271

$

662,781

$

644,117

$

623,704

Common Shares Outstanding

25,320,686

25,296,763

23,047,203

23,039,223

22,915,194

Tangible Book Value per Share

$

28.18

$

27.56

$

28.76

$

27.96

$

27.22

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses

Three Months Ended

(Dollars in thousands, except per share data)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Net Income Available to Common Shareholders

$

21,691

$

8,706

$

19,447

$

18,297

$

4,762

Less: BOLI Death Benefit Income

1

331

223

71

1

Less: Recoveries on loans previously acquired in business combinations (1)

—

—

—

534

—

Less: Swap cancellation gain

—

—

83

279

—

Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution

—

—

—

420

—

Less: Gain on sale of pension assets

—

—

192

—

—

Plus: Merger and Acquisition Expenses (2)

103

7,723

(39

)

233

11,011

Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards

314

370

314

753

2,043

Plus: Legal settlement expense

—

665

—

—

—

Less: Tax Effect of Non-Recurring Expenses

88

1,839

—

207

2,741

Net Income Excluding Non-Recurring Income and Expenses

$

22,019

$

15,294

$

19,224

$

17,772

$

15,074

Weighted-average Shares Outstanding

25,330,234

23,949,008

23,045,983

23,005,504

21,566,617

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses

$

0.87

$

0.64

$

0.83

$

0.77

$

0.70

Return on Average Tangible Common Equity

Three Months Ended

(Dollars in thousands)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30,
2025

Jun. 30,
2025

Net income available to common shareholders

$

21,691

$

8,706

$

19,447

$

18,297

$

4,762

Plus: Intangible amortization, net of tax

1,437

1,027

735

746

588

23,128

9,733

20,182

19,043

5,350

Average shareholders' equity

892,092

845,553

803,093

783,547

670,491

Less: Average goodwill

157,121

147,021

136,620

135,486

130,824

Less: Average core deposit and other intangibles

32,105

20,835

14,969

16,003

9,824

Average tangible common shareholders' equity

$

702,866

$

677,697

$

651,504

$

632,058

$

529,843

Return on average tangible common equity(1)

13.20

%

5.82

%

12.29

%

11.95

%

4.05

%

Core Efficiency Ratio (Non-GAAP)

Three Months Ended

(Dollars in thousands)

Jun. 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sep. 30, 2025

Jun. 30,
2025

Noninterest expense

$

47,767

$

51,959

$

35,848

$

37,982

$

47,798

Less: Merger and acquisition expenses (1)

103

7,723

(39

)

233

11,011

Less: Compensation expense for accelerated vesting of stock options and restricted stock awards

314

370

314

753

2,043

Less: Intangible amortization

1,819

1,300

930

944

744

Less: Loss on sale or write-down of foreclosed assets, net

4

491

203

471

—

Less: Other expenses on foreclosed assets

142

427

445

—

—

Less: Legal settlement expense

—

665

—

—

—

Efficiency ratio numerator

45,385

40,983

33,995

35,581

34,000

Net interest income

65,280

55,250

54,751

53,629

48,206

Noninterest income

10,586

9,604

7,277

8,183

6,143

Less: BOLI Death Benefit

1

331

223

71

1

Less: Recoveries on loans previously acquired in business combinations (2)

—

—

—

534

—

Less: Swap cancellation gain

—

—

83

279

—

Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution

—

—

—

420

—

Less: Gain on sale of pension assets

—

—

192

—

—

Less: Net gain on sales of investment securities

—

—

10

—

—

Efficiency ratio denominator

$

75,865

$

64,523

$

61,520

$

60,508

$

54,348

Core efficiency ratio

59.82

%

63.52

%

55.26

%

58.80

%

62.56

%

Tax effect on non-GAAP adjustments (3)

231

236

243

245

245

Tax-effected core efficiency ratio

59.64

%

63.29

%

55.04

%

58.57

%

62.28

%