River City Bank Reports Third Quarter 2026 Results and Announces a Quarterly Cash Dividend

River City Bank (Nasdaq: RCBC) (“the Bank”) reported net income of $30.6 million or $2.16 per share for the quarter ended September 30, 2026, which compares to $19.7 million, or $1.36 per share, for the same period in 2025. Net income was $68.2 million or $4.75 per share for the nine months ended September 30, 2026, which compares to $47.4 million, or $3.24 per share, for the nine months ended September 30, 2025. The Bank’s earnings for the quarter ended September 30, 2026 resulted in a 21.06% return on average equity and a 1.92% return on average assets. The Bank’s book value per share rose 14% to $42.32 as of September 30, 2026 from $37.04 per share as of September 30, 2025.

In August 2026, the Bank successfully completed its initial public offering (“IPO”) and its shares began trading on the Nasdaq Capital Market under the RCBC ticker symbol. The secondary offering consisted solely of existing shares held by two of the Bank’s long-time shareholders associated with the family of the Bank’s founder, Jon Kelly, and no new shares were issued by the Bank. The IPO was a major milestone in the Bank’s history, increased the Bank’s visibility within the public capital markets, and provided liquidity for shareholders, while establishing a publicly traded market value for its common stock.

Third Quarter Highlights

Performance and operating highlights for the Bank for the periods noted below included the following:

	For the Three Months Ended
	September 30, 2026			June 30, 2026			September 30, 2025
	*($ in thousands, except per share data)*
Return on average assets (“ROAA”)		1.92	%		1.28	%		1.43	%
Adjusted ROAA ⁽¹⁾		1.15	%		1.14	%		1.51	%
Return on average equity (“ROAE”)		21.06	%		13.92	%		15.06	%
Adjusted ROAE ⁽¹⁾		12.63	%		12.31	%		15.92	%
Efficiency ratio		19.43	%		29.44	%		29.39	%
Core pre-tax, pre-provision (“PTPP”) income ⁽¹⁾	$	29,294		$	25,433		$	28,391
Net income	$	30,609		$	19,616		$	19,684
Earnings per share	$	2.16		$	1.37		$	1.36
Adjusted EPS ⁽¹⁾	$	1.29		$	1.21		$	1.43
Book value per share	$	42.32		$	40.58		$	37.04
Weighted average shares outstanding		14,190,307			14,341,273			14,517,644
Common shares outstanding at end of period		13,962,925			13,994,875			14,247,800
⁽¹⁾ See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures.

Net income increased to $30.6 million, or $2.16 per share, for the third quarter of 2026, as compared to $19.6 million, or $1.37 per share, for the preceding quarter and $19.7 million, or $1.36 per share, for the same period in the prior year. This significant increase in the current quarter was primarily due to a $17.1 million mark-to-market (“MTM”) gain related to certain interest rate swaps. The MTM gain was due to the increase in U.S. Treasury rates during the third quarter of 2026. Management believes that core PTPP income⁽¹⁾, which also removes the MTM gains and losses is a better metric to evaluate the Bank’s core earnings. Core PTPP income increased 15% to $29.3 million for the third quarter of 2026 as compared to $25.4 million for the trailing quarter and increased 3% from $28.4 million for the same quarter in the prior year.
Average loans increased by $108 million (2% growth) compared to the trailing quarter and by $363 million (8% growth) compared to the same period in the prior year, reflecting continued organic loan growth.
Average deposits for the third quarter of 2026 increased by $158 million (3% growth) compared to the trailing quarter and by $766 million (16% growth) compared to the same period in the prior year, supporting the Bank’s loan growth and liquidity position.
As of September 30, 2026, the Bank had zero non-performing loans, virtually no delinquent loans (0.00% of total loans), no loans more than 90 days past due and still accruing interest, no other real estate owned (“OREO”), and the Bank’s Allowance for Credit Losses for Loans (“ACL”) was 2.30% of total loans. Due to the loan growth, the Bank recorded a $3.7 million provision for credit losses (loans and unfunded commitments) for the three months ended September 30, 2026, compared to $1.5 million provision in the trailing quarter and a $644,000 reversal of provision for the same period in the prior year. The ACL to total loans ratio was unchanged at September 30, 2026 from the prior quarter end at 2.30%.
The Bank continued to maintain an exceptional efficiency ratio by industry standards at 19.4% for the third quarter of 2026, compared to 29.4% in both the trailing quarter and the third quarter of 2025. Even excluding the $17.1 million MTM gain on undesignated interest rate swaps, the Bank’s adjusted efficiency ratio⁽¹⁾ was 27.7% compared to 31.9% in the trailing quarter and 28.2% for the same period in the prior year.
Net interest margin (“NIM”) – The Bank’s NIM was 2.39% and 2.34% for the three months ended September 30, 2026 and June 30, 2026. The modest increase in the current quarter was due to slightly higher yields on interest-earning assets because of the increase in U.S. Treasury rates and a 0.03% reduction in cost of funds.

⁽¹⁾ See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures.

“This quarter was quite exceptional in the Bank’s 53-year history due to our IPO and listing on the Nasdaq. We believe that becoming a public company will enable us to further enhance shareholder value, which has always been management’s and the Board’s “North Star”. The Bank also delivered solid core operating results in the third quarter of 2026, as evidenced by the operating metrics and continued compounding of book value per share,” said Steve Fleming, President and Chief Executive Officer. “In addition, the Bank grew loans by 3.7% over the prior quarter-end and credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008.”

Mr. Fleming also noted, “The Bank recognized a $17.1 million MTM gain related to its undesignated interest rate swaps. The Bank systematically enters interest rate swaps to mitigate interest rate risk and all swaps are entered into for economic and risk management purposes (regardless of accounting treatment). Approximately 16% of the Bank’s interest rate swaps are undesignated as of September 30, 2026, and until these interest rate swaps are designated as a hedge to specific assets or liabilities, the MTM fluctuations (positive and negative) will flow through the income statement.” Given the hedging purpose of the swaps, Bank management does not view the MTM gains and losses to be indicative of the Bank’s core operating performance. As such, for the purposes of disclosure in this earnings release, the Bank has shown several important metrics which remove this non-core component of net income such as earnings per share, return on average equity, return on average asset, and operating efficiency.

Brian Killeen, Chief Financial Officer said, “The Bank continues to perform at a high level, as reflected in the following key metrics: return on average equity, return on average assets, and operating efficiency. We view operational efficiency as a competitive advantage, contributing to sustained profitability and growth in shareholder value. Despite the increase in U.S. Treasury rates during the current quarter, the Bank’s high quality, short duration investment securities portfolio continued to perform well with a relatively low unrealized loss position of 1.5% as of September 30, 2026.”

Summary Results

Three months ended September 30, 2026, as compared to three months ended September 30, 2025

	For the Three Months Ended						Variance
	September 30, 2026			September 30, 2025			$			%
	*($ in thousands, except per share data)*
Interest income	$	77,045		$	71,751		$	5,294		7.4	%
Interest expense		39,199			34,656			4,543		13.1	%
Net interest income		37,846			37,095			751		2.0	%
Provision for (reversal of) credit losses		3,718			(644	)		4,362		NM
Net interest income after provision for (reversal of) credit losses		34,128			37,739			(3,611	)	(9.6	)%
Net changes in the fair value of derivatives		17,149			(1,568	)		18,717		NM
Noninterest income, excluding net changes in the fair value of derivatives		2,651			2,460			191		7.8	%
Noninterest expense		11,203			11,164			39		0.3	%
Income before taxes		42,725			27,467			15,258		55.6	%
Provision for income taxes		12,116			7,783			4,333		55.7	%
Net income	$	30,609		$	19,684		$	10,925		55.5	%

Earnings per share	$	2.16		$	1.36		$	0.80		58.8	%
ROAA		1.92	%		1.43	%		0.49	%	34.3	%
ROAE		21.06	%		15.06	%		6.00	%	39.8	%
Efficiency ratio		19.43	%		29.39	%		(9.96	)%	(33.9	)%

The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.7 million for the three months ended September 30, 2025. The primary items of note are as follows:

Interest income increased by $5.3 million as average interest-earning assets increased by $853 million, due to the Bank’s strong deposit growth.
Interest expense increased by $4.5 million due to $785 million growth in the average balance of interest-bearing deposits, partially offset by a 0.23% decrease in the cost of interest-bearing deposits as compared to the same quarter in the prior year.
Provision for credit losses increased by $4.4 million due to loan growth and adjustments associated with qualitative factors in the ACL calculation.
The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $18.7 million to a $17.1 million MTM gain compared to $1.6 million MTM loss in the same quarter of the prior year. This was caused by the significant increase in U.S. Treasury rates during the current quarter.
Noninterest income, excluding net changes in the fair value of derivatives, remained relatively stable compared to the prior year quarter. During the third quarter of 2026, the Bank recognized a $553,000 gain related to sale of Visa shares received through Visa’s B Shares tender offer, which was largely offset by lower net amounts received on undesignated derivatives, as the average Secured Overnight Financing Rate (“SOFR”) declined period over period.

Three months ended September 30, 2026, as compared to three months ended June 30, 2026

	For the Three Months Ended						Variance
	September 30, 2026			June 30, 2026			$			%
	*($ in thousands, except per share data)*
Interest income	$	77,045		$	73,544		$	3,501		4.8	%
Interest expense		39,199			38,007			1,192		3.1	%
Net interest income		37,846			35,537			2,309		6.5	%
Provision for credit losses		3,718			1,518			2,200		144.9	%
Net interest income after provision for credit losses		34,128			34,019			109		0.3	%
Net changes in the fair value of derivatives		17,149			3,178			13,971		439.6	%
Noninterest income, excluding net changes in the fair value of derivatives		2,651			1,833			818		44.6	%
Noninterest expense		11,203			11,937			(734	)	(6.1	)%
Income before taxes		42,725			27,093			15,632		57.7	%
Provision for income taxes		12,116			7,477			4,639		62.0	%
Net income	$	30,609		$	19,616		$	10,993		56.0	%

Earnings per share	$	2.16		$	1.37			0.79		57.7	%
ROAA		1.92	%		1.28	%		0.64	%	50.0	%
ROAE		21.06	%		13.92	%		7.14	%	51.3	%
Efficiency ratio		19.43	%		29.44	%		(10.01	)%	(34.0	)%

The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.6 million for the three months ended June 30, 2026. The primary items of note are as follows:

Interest income increased by $3.5 million, primarily due to a $108 million increase in average balances of loans and a $93 million increase in average balances of cash and investment securities.
Interest expense increased by $1.2 million due to $76 million growth in average interest-bearing liabilities balances, as compared to the prior quarter.
Provision for credit losses increased by $2.2 million reflecting increased loan origination during the current quarter.
Noninterest expense decreased by $734,000, primarily reflecting lower stock compensation expense and a decline in professional service expenses following the completion of the Bank’s IPO in August 2026 as compared to the prior quarter.

Nine months ended September 30, 2026, as compared to nine months ended September 30, 2025

	For the Nine Months Ended						Variance
	September 30, 2026			September 30, 2025			$			%
	*($ in thousands, except per share data)*
Interest income	$	222,551		$	208,299		$	14,252		6.8	%
Interest expense		114,152			104,478			9,674		9.3	%
Net interest income		108,399			103,821			4,578		4.4	%
Provision for (reversal of) credit losses		6,748			(768	)		7,516		NM
Net interest income after provision for (reversal of) credit losses		101,651			104,589			(2,938	)	(2.8	)%
Net changes in the fair value of derivatives		22,056			(12,013	)		34,069		NM
Noninterest income, excluding net changes in the fair value of derivatives		6,512			6,986			(474	)	(6.8	)%
Noninterest expense		35,585			33,087			2,498		7.5	%
Income before taxes		94,634			66,475			28,159		42.4	%
Provision for income taxes		26,463			19,074			7,389		38.7	%
Net income	$	68,171		$	47,401		$	20,770		43.8	%

Earnings per share	$	4.75		$	3.24		$	1.51		46.6	%
ROAA		1.48	%		1.18	%		0.30	%	25.4	%
ROAE		16.10	%		12.53	%		3.57	%	28.5	%
Efficiency ratio		25.98	%		33.49	%		(7.51	)%	(22.4	)%

The Bank’s net income was $68.2 million for the nine months ended September 30, 2026, as compared to $47.4 million for the nine months ended September 30, 2025. The primary items of note are as follows:

Interest income increased by $14.3 million, primarily due to a $329 million increase in average balances of loans and a $436 million increase in average cash balances and investment securities, which was caused by the strong growth in average deposits.
Interest expense increased by $9.7 million due to $730 million of growth in the average balance of interest-bearing liabilities, partially offset by a 0.14% decrease in the cost of funds between the two periods.
The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $34.1 million to a $22.1 million MTM gain compared to $12.0 million MTM loss in the same period of the prior year. This fluctuation was due to changes in the U.S. Treasury rate environment over the two periods.
Noninterest expense increased by $2.5 million over the prior year period, primarily due to a $1.3 million increase in personnel expense as the Bank continues to build out its team to support growth. The increase also reflects higher professional service costs associated with the Bank’s recently completed IPO.

Balance Sheet Summary

Year over Year Balance Sheet Change

	As of September 30,				Variance
	2026		2025		$		%
	*($ in thousands)*
Total assets	$	6,381,595	$	5,474,904	$	906,691		16.6	%
Total loans		4,849,645		4,437,858		411,787		9.3	%
Total investments		1,021,630		689,296		332,334		48.2	%
Total deposits		5,613,774		4,861,136		752,638		15.5	%
Total shareholders’ equity		590,870		527,700		63,170		12.0	%

Loans outstanding increased by $412 million or 9.3% as of September 30, 2026 compared to September 30, 2025. The growth was primarily in Commercial Real Estate loans that grew $385 million from September 30, 2025.

Deposit balances increased by $753 million from September 30, 2025 to September 30, 2026, due primarily to significant growth in Commercial and Clean Energy client relationships.

Shareholders’ equity increased $63 million to $591 million as of September 30, 2026 when compared to $528 million as of September 30, 2025. The increase was driven primarily by growth in retained earnings, as the Bank continues to maintain a relatively low dividend payout ratio, albeit partly mitigated by $15.5 million in share repurchases over the period.

Trailing Quarter Balance Sheet Change

	As of				Variance
	September 30, 2026		June 30, 2026		$		%
	*($ in thousands)*
Total assets	$	6,381,595	$	6,042,514	$	339,081		5.6	%
Total loans		4,849,645		4,678,130		171,515		3.7	%
Total investments		1,021,630		1,003,538		18,092		1.8	%
Total deposits		5,613,774		5,374,670		239,104		4.4	%
Total shareholders’ equity		590,870		567,881		22,989		4.0	%

Total loans increased by $172 million during the quarter ended September 30, 2026. Loan originations totaled approximately $238 million for the quarter ended September 30, 2026.

Deposit balances increased by $239 million during the quarter ended September 30, 2026, reflecting continued growth in deposit levels within the Bank’s existing client base. As of September 30, 2026, the Bank had no wholesale funding.

Shareholders’ equity increased $23 million to $591 million as of September 30, 2026 when compared to $568 million as of June 30, 2026. The increase was driven primarily by the current quarter net income, less $1.6 million of share repurchases during the quarter ended September 30, 2026. The Bank’s capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.39% and a Total Risk-Based Capital Ratio of 14.61% as of September 30, 2026.

Asset Quality Ratios

	September 30,		June 30,		March 31,		December 31,		September 30,
	2026		2026		2026		2025		2025
ACL/Total loans	2.30	%	2.30	%	2.29	%	2.24	%	2.27	%
Delinquent loans/Total loans	0.00	%	0.03	%	0.02	%	0.02	%	0.00	%
Non-performing loans/Total loans	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Year-to-date net charge-off ratio	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%

As of September 30, 2026, the Bank had no OREO or non-performing loans and there were no charge-offs during the quarter. The Bank’s allowance for credit losses was $112 million as of September 30, 2026, as compared to $104 million as of December 31, 2025.

Provision for Income Taxes

The Bank’s effective tax rate was 28.0% and 28.7% for the nine months ended September 30, 2026 and 2025, respectively. Differences between the Bank’s effective tax rate and applicable federal and state (primarily California) blended statutory rate of approximately 29.4% are primarily due to the proportion of excess benefit from restricted share instruments vesting, the benefits of tax credits, and changes in the Bank’s apportionment of taxable income in certain states.

Dividend Announcement

The Bank’s board of directors has approved a cash dividend of $0.05 per common share to shareholders of record as of November 3, 2026, and payable on November 17, 2026.

ABOUT RIVER CITY BANK:

With more than five decades of operating history, River City Bank has built a reputation for relationship-focused service, disciplined growth, and specialized expertise across commercial banking, commercial real estate, clean energy, public sector banking, and other key industries. River City Bank is the largest independent bank in the Sacramento region, with an office in San Francisco and a focus on the Western United States. The Bank remains committed to delivering concierge banking solutions and exceptional client service. Please visit http://www.rivercitybank.com. Member FDIC. Equal Housing Lender.

FORWARD-LOOKING STATEMENTS

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

The financial results reported in this document are preliminary and unaudited.

Condensed Financial Data (Unaudited)

Income Statement Data

	For the Three Months Ended								For the Nine Months Ended
	September 30, 2026		June 30, 2026			September 30, 2025			September 30, 2026		September 30, 2025
	*($ in thousands)*
Interest income	$	77,045	$	73,544		$	71,751		$	222,551	$	208,299
Interest expense		39,199		38,007			34,656			114,152		104,478
Net interest income		37,846		35,537			37,095			108,399		103,821
Provision for (reversal of) credit losses		3,718		1,518			(644	)		6,748		(768	)
Net interest income after provision for (reversal of) credit losses		34,128		34,019			37,739			101,651		104,589

Service charges on deposit accounts		205		215			201			623		588
Check card revenue		164		164			172			486		526
Net payments received on undesignated derivatives		962		909			1,523			2,806		4,217
Net changes in the fair value of derivatives		17,149		3,178			(1,568	)		22,056		(12,013	)
Real estate lease income		158		162			74			482		204
FHLB dividends		390		187			327			1,337		981
Gain (loss) on investment securities, net		553		(42	)		(17	)		70		(109	)
Other noninterest income		219		238			180			708		579
Total noninterest income		19,800		5,011			892			28,568		(5,027	)

Salaries and employee benefits		7,259		7,646			7,155			23,165		21,826
Occupancy and equipment		614		594			636			1,848		1,862
Data processing		975		983			920			2,879		2,714
Federal deposit insurance		725		720			600			2,120		1,850
Other noninterest expense		1,630		1,994			1,853			5,573		4,835
Total noninterest expense		11,203		11,937			11,164			35,585		33,087

Income before taxes		42,725		27,093			27,467			94,634		66,475
Provision for income taxes		12,116		7,477			7,783			26,463		19,074
Net income	$	30,609	$	19,616		$	19,684		$	68,171	$	47,401

Net Interest Income and Net Interest Margin

	For the Three Months Ended
	September 30, 2026						June 30, 2026						September 30, 2025
	Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate
Interest-earning assets	*(tax-equivalent basis, $ in thousands)*
Interest-earning deposits in banks	$	503,504	$	4,812	3.79	%	$	512,960	$	4,747	3.71	%	$	347,324	$	3,692	4.22	%
Investment securities (TE)		1,039,178		9,853	3.76	%		936,585		8,723	3.74	%		704,617		7,129	4.01	%
Loans		4,751,505		62,384	5.21	%		4,643,971		60,082	5.19	%		4,388,772		60,939	5.51	%
Total interest-earning assets		6,294,187		77,049	4.86	%		6,093,516		73,552	4.84	%		5,440,713		71,760	5.23	%
Total noninterest-earning assets		28,460						33,786						19,058
Total average assets	$	6,322,647					$	6,127,302						5,459,771

Interest-bearing liabilities
Interest-bearing transaction accounts		2,503,785		21,072	3.34	%		2,460,332		20,460	3.34	%		1,903,561		16,992	3.54	%
Money market accounts		1,424,742		11,612	3.23	%		1,438,964		11,586	3.23	%		991,303		8,135	3.26	%
Savings deposits		83,877		105	0.50	%		85,313		103	0.48	%		94,127		120	0.51	%
Time deposits		626,991		5,903	3.74	%		603,903		5,572	3.70	%		865,494		9,146	4.19	%
Interest-bearing deposits		4,639,395		38,692	3.31	%		4,588,512		37,721	3.30	%		3,854,485		34,393	3.54	%
Borrowings		—		—	0.00	%		6		—	0.00	%		272		3	4.38	%
Other interest-bearing liabilities		105,870		507	1.90	%		81,171		286	1.41	%		68,691		260	1.50	%
Total interest-bearing liabilities	$	4,745,265	$	39,199	3.28	%	$	4,669,689	$	38,007	3.26	%	$	3,923,448	$	34,656	3.50	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		976,345						869,041						994,758
Other noninterest-bearing liabilities		24,486						23,466						23,027
Total noninterest-bearing liabilities		1,000,831						892,507						1,017,785
Total average liabilities		5,746,096						5,562,196						4,941,233
Shareholders’ equity		576,551						565,106						518,538
Total liabilities and shareholders’ equity	$	6,322,647					$	6,127,302					$	5,459,771

Net interest income			$	37,850					$	35,545					$	37,104

NIM					2.39	%					2.34	%					2.71	%

Cost of funds	$	5,721,610	$	39,199	2.72	%	$	5,538,730	$	38,007	2.75	%	$	4,918,206	$	34,656	2.80	%
Cost of deposits	$	5,615,740	$	38,692	2.73	%	$	5,457,553	$	37,721	2.77	%	$	4,849,243	$	34,393	2.81	%

	For the Nine Months Ended
	September 30, 2026						September 30, 2025
	Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate
	*(tax-equivalent basis, $ in thousands)*
Interest-earning assets
Interest-earning deposits in banks	$	561,727	$	15,576	3.71	%	$	317,690	$	10,024	4.22	%
Investment securities (TE)		890,388		25,183	3.78	%		697,985		21,533	4.12	%
Loans		4,663,615		181,809	5.21	%		4,334,188		176,763	5.45	%
Total interest-earning assets		6,115,730		222,568	4.87	%		5,349,863		208,320	5.21	%
Total noninterest-earning assets		28,096						20,827
Total average assets	$	6,143,826					$	5,370,690

Interest-bearing liabilities
Interest-bearing transaction accounts		2,429,350		60,883	3.35	%		1,878,704		50,591	3.60	%
Money market accounts		1,398,282		33,974	3.25	%		974,703		24,173	3.32	%
Savings deposits		85,952		315	0.49	%		97,138		364	0.50	%
Time deposits		640,820		18,038	3.76	%		863,253		27,755	4.30	%
Interest-bearing deposits		4,554,404		113,210	3.32	%		3,813,798		102,883	3.61	%
Borrowings		94		3	4.27	%		1,745		59	4.52	%
Other interest-bearing liabilities		82,851		939	1.52	%		91,815		1,536	2.24	%
Total interest-bearing liabilities	$	4,637,349	$	114,152	3.29	%	$	3,907,358	$	104,478	3.57	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		916,135						933,214
Other noninterest-bearing liabilities		24,071						24,170
Total noninterest-bearing liabilities		940,206						957,384
Total average liabilities		5,577,555						4,864,742
Shareholders’ Equity		566,271						505,948
Total liabilities and shareholders’ equity	$	6,143,826					$	5,370,690

Net interest income			$	108,416					$	103,842

NIM					2.37	%					2.60	%

Cost of funds	$	5,553,484	$	114,152	2.75	%	$	4,840,572	$	104,478	2.89	%
Cost of deposits	$	5,470,539	$	113,210	2.77	%	$	4,747,012	$	102,883	2.90	%

Balance Sheet Data

Assets	September 30, 2026			June 30, 2026			September 30, 2025
	*($ in thousands)*
Cash and due from financial institutions	$	485,870		$	353,369		$	339,406
Investment securities		1,021,630			1,003,538			689,296
Loans by type:
Commercial real estate – owner occupied		160,628			161,637			160,216
Commercial real estate – non-owner occupied		4,234,190			4,060,364			3,849,474
Construction and land development		56,162			41,763			15,250
Residential real estate		190,158			191,404			193,291
Commercial and industrial		135,176			154,676			170,377
Consumer		9,644			9,089			9,636
Agricultural		63,687			59,197			39,614
Total gross loans		4,849,645			4,678,130			4,437,858
Less: Net deferred loan fees & hedged loan MTM		(118,184	)		(69,389	)		(48,976	)
Less: Allowance for credit losses – loans		(111,749	)		(107,826	)		(100,771	)
Net loans		4,619,712			4,500,915			4,288,111
Accrued interest receivable		25,197			22,815			24,861
Premise and equipment, net		10,534			10,712			10,406
Deferred tax assets, net		31,291			28,791			25,370
Derivatives		149,283			84,278			58,939
Other assets		38,078			38,096			38,515
Total assets	$	6,381,595		$	6,042,514		$	5,474,904
Liabilities and shareholders’ equity
Deposits:
Noninterest-bearing demand deposits	$	901,373		$	825,271		$	883,675
Money market accounts		1,531,100			1,416,955			1,064,377
Interest-bearing transaction accounts		2,488,396			2,428,866			2,002,239
Savings deposits		84,811			84,606			92,738
Time deposits		608,094			618,972			818,107
Total deposits		5,613,774			5,374,670			4,861,136
Accrued interest payable		3,582			2,952			5,484
Borrowings		—			—			—
Cash collateral held related to derivatives		149,590			81,970			62,480
Other liabilities		23,779			15,041			18,104
Total liabilities		5,790,725			5,474,633			4,947,204
Shareholders’ equity		590,870			567,881			527,700
Total liabilities and shareholders’ equity	$	6,381,595		$	6,042,514		$	5,474,904

Capital Ratios

	September 30,			June 30,			March 31,			December 31,			September 30,
	2026			2026			2026			2025			2025
Tier 1 leverage ratio		9.39	%		9.22	%		9.35	%		9.40	%		9.54	%
Common equity tier 1 capital ratio		13.34	%		13.18	%		13.14	%		12.75	%		12.58	%
Tier 1 risk-based capital ratio		13.34	%		13.18	%		13.14	%		12.75	%		12.58	%
Total risk-based capital ratio		14.61	%		14.44	%		14.41	%		14.02	%		13.85	%

Non-GAAP Reconciliation

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial measures. Management has presented these non-GAAP financial measures in this press release because management believes that they provide useful and comparative information to assess trends in the Bank’s core operations. However, the non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of the non-GAAP financial measures, see the table below:

Core Pre-Tax, Pre-Provision Income

This figure is defined as net interest income, plus noninterest income, less the change in the fair value of derivatives, less noninterest expense. The purpose of this non-GAAP financial measure is to remove the market volatility that can be included in the change in the fair value of derivatives that do not have fair value hedge accounting treatment (undesignated), which is a component of noninterest income. We hedge our interest rate risk through interest rate derivatives and a portion of the gain/loss on derivatives is reflected in our income statement. In addition, this measure is shown before the provision for credit losses and income tax expense. We believe that this non-GAAP financial measure provides a clearer picture of our operational earnings.

	For the Three Months Ended							For the Nine Months Ended
	September 30, 2026		June 30, 2026		September 30, 2025			September 30, 2026		September 30, 2025
	*($ in thousands)*
Net interest income	$	37,846	$	35,537	$	37,095		$	108,399	$	103,821

Noninterest income		19,800		5,011		892			28,568		(5,027	)
Non-core item:
Less change in the fair value of derivatives		17,149		3,178		(1,568	)		22,056		(12,013	)
Core noninterest income		2,651		1,833		2,460			6,512		6,986

Less noninterest expense		11,203		11,937		11,164			35,585		33,087

Core pre-tax, pre-provision income	$	29,294	$	25,433	$	28,391		$	79,326	$	77,720

Adjusted Efficiency Ratio

This non-GAAP financial measure is defined as noninterest expense divided by the sum of net interest income and core noninterest income, where core noninterest income excludes the impact of changes in the fair value of undesignated interest rate swaps.

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
	*($ in thousands)*
Total noninterest expense (A)	$	11,203		$	11,937		$	11,164		$	35,585		$	33,087

Net interest income (B)		37,846			35,537			37,095			108,399			103,821

Noninterest income (C)	$	19,800		$	5,011		$	892		$	28,568		$	(5,027	)
Less change in the fair value of derivatives		17,149			3,178			(1,568	)		22,056			(12,013	)
Core noninterest income (D)	$	2,651		$	1,833		$	2,460		$	6,512		$	6,986

Efficiency Ratio (A)/(B +C)		19.43	%		29.44	%		29.39	%		25.98	%		33.49	%
Adjusted Efficiency Ratio (A)/(B+D)		27.66	%		31.94	%		28.22	%		30.97	%		29.86	%

Adjusted EPS

This figure is defined as adjusted net income divided by weighted average shares outstanding. Adjusted net income is calculated as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps.

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
	*($ in thousands)*
Net income	$	30,609		$	19,616		$	19,684		$	68,171		$	47,401

Non-core item:
Change in the fair value of derivatives		17,149			3,178			(1,568	)		22,056			(12,013	)
Tax Effect		(4,887	)		(906	)		447			(6,286	)		3,424
Change in the fair value of derivatives, net		12,262			2,272			(1,121	)		15,770			(8,589	)

Adjusted net income		18,347			17,344			20,805			52,401			55,990

Weighted average shares outstanding		14,190,307			14,341,273			14,517,644			14,348,514			14,610,286

Adjusted EPS	$	1.29		$	1.21		$	1.43		$	3.65		$	3.83

Adjusted ROAA and ROAE

These figures are defined as adjusted net income divided by average assets and adjusted net income divided by average shareholders’ equity. Adjusted net income is calculated as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps.

	For the Three Months Ended									For the Nine Months Ended
	September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
	*($ in thousands)*
Adjusted net income		18,347			17,344			20,805			52,401			55,990

Adjusted ROAA		1.15	%		1.14	%		1.51	%		1.14	%		1.39	%
Adjusted ROAE		12.63	%		12.31	%		15.92	%		12.37	%		14.80	%

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