Document

•Net Income – Net income for the first quarter of 2026 increased $1.2 million to a record $17.1 million from $15.9 million in the fourth quarter of 2025. Net income increased primarily due to an increase in net interest income of $2.4 million and a decrease in the provision for credit losses of $2.7 million, partially offset by lower noninterest income of $1.7 million and an increase in noninterest expense of $1.6 million. The lower noninterest income was due to a one-time receipt of insurance proceeds in the fourth quarter of 2025.

•Net Interest Margin (“NIM”) – Net interest income for the first quarter of 2026 increased $2.4 million to $52.6 million compared to the fourth quarter of 2025. NIM increased 21 basis points (“bps”) to 3.64% during the first quarter of 2026 compared to the fourth quarter of 2025. NIM excluding accretion(1) increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Net interest income increased due to accelerated accretion due to loan payoffs coupled with a lower cost of deposits and lower long-term borrowing expenses. These favorable changes were partially offset by lower yields on interest-bearing deposits with other institutions.

•Asset Quality – Nonperforming assets were 1.10% of total assets at March 31, 2026, an increase from 0.69% at December 31, 2025 and 0.31% at March 31, 2025. Classified assets were 1.38% of total assets at March 31, 2026, an increase when compared to 0.96% at December 31, 2025 and 0.36% at March 31, 2025. The allowance for credit losses (“ACL”) was $58.5 million at March 31, 2026, compared to $58.8 million at December 31, 2025 and $58.0 million at March 31, 2025. The ACL as a percentage of loans increased to 1.21% at March 31, 2026 compared to 1.20% at December 31, 2025 and remained flat compared to March 31, 2025.

•Operating Leverage – The efficiency ratio for the first quarter of 2026 was 61.97%, compared to 60.06% in the fourth quarter of 2025 and 63.64% for the first quarter of 2025. The adjusted efficiency ratio – non-GAAP(1), which excludes amortization of intangibles, was 58.57% for the first quarter of 2026, compared to 56.59% for the fourth quarter of 2025 and 59.25% for the first quarter of 2025. Management anticipates ongoing expense management of professional services and technology investments will result in continued improvements in operating leverage over time.

“Shore Bancshares delivered another strong quarter to begin 2026, with higher net income, expanding net interest margin and continued growth in book value per share,” stated James (“Jimmy”) M. Burke, President and Chief Executive Officer of Shore Bancshares. “Lower funding costs, accelerated loan repricing and disciplined balance sheet management drove record net interest income and record profitability during the quarter. We also continued to make progress improving our core operating performance while maintaining prudent expense control.

Total assets were $6.21 billion at March 31, 2026, a decrease of $52.8 million, or 0.8%, when compared to $6.26 billion at December 31, 2025. The decrease was primarily due to a decrease in our loan portfolio of $52.3 million and a decrease in cash and cash equivalents of $14.7 million, which were partially offset by an increase in our investment securities portfolio of $22.5 million. The decrease in cash and cash equivalents was primarily driven by seasonal run-off of the municipal deposits. Total assets increased $29.5 million, or 0.5%, from $6.18 billion when compared to March 31, 2025.


	March 31, 2026
	Owner Occupied						Non-Owner Occupied
($ in thousands)	Average LTV(1)		Average Loan Size		Loan Balance(2)		Average LTV(1)		Average Loan Size		Loan Balance(2)
Office, medical	45.25	%	$	597	$	28,074	47.74	%	$	1,746	$	85,570
Office, govt. or govt. contractor	49.80		875		6,999		53.80		3,057		62,308
Office, other	46.58		467		84,074		48.66		1,328		213,825
Office, total	46.43		507		119,147		48.91		1,574		361,703
Retail	49.55		610		65,223		48.07		2,554		482,785
Multifamily (5+ units)	—		—		—		54.46		2,353		261,226
Hotel/motel	—		—		—		44.46		4,056		190,614
Industrial/warehouse	45.74		654		92,883		46.49		1,412		184,927
Commercial-improved	41.57		1,182		217,492		50.02		1,291		160,134
Marine/boat slips	32.52		804		17,696		36.45		1,472		7,359
Restaurant	47.86		976		54,657		48.40		1,008		41,310
Church	33.03		861		56,797		13.18		2,354		2,354
Land/lot loans	44.54		551		1,103		—		—		—
Other	40.21		1,440		119,558		32.94		543		162,847
Total CRE loans, gross	43.14		830		$	744,556	44.39		1,584		$	1,855,259

There were 17 office CRE loans with balances greater than $5.0 million, totaling $164.8 million at March 31, 2026 and totaling $166.1 million at December 31, 2025. The decrease in this portfolio segment was the result of normal amortization. 81.1% of the office CRE loan balance was secured by properties in rural or suburban areas with limited exposure to metropolitan cities and 97.5% was secured by properties with five stories or less. $28.7 million of these loan balances were classified as special mention or substandard at March 31, 2026. There were no charge-offs within the office CRE portfolio during the three months ended March 31, 2026.

Nonperforming assets were $68.4 million and $43.2 million, or 1.10% and 0.69% of total assets, as of March 31, 2026 and December 31, 2025, respectively. Nonperforming assets primarily consist of two large relationships with an aggregate loan balance of $45.6 million. These nonperforming loans primarily consists of multifamily and office commercial real estate based in North Carolina and Virginia. As of March 31, 2026, these loans are well-secured by collateral and required minimal individual reserves. When comparing March 31, 2026 to March 31, 2025, nonperforming assets increased $49.5 million, primarily due to an increase in nonaccrual loans of $49.6 million and an increase in repossessed marine and auto loans of $806 thousand, partially offset by a decrease in loans 90 days past due and accruing of $894 thousand. Substandard loans, which include nonaccrual loans and accruing loans 90 days or more past due were $82.3 million at March 31, 2026 compared to $57.4 million at December 31, 2025 and $19.4 million at March 31, 2025.

Special mention loans increased to $97.8 million at March 31, 2026 compared to $73.4 million at December 31, 2025 and $33.5 million at March 31, 2025. As of March 31, 2026, there were six special mention loans with individual balances greater than $5.0 million, totaling $79.1 million. These loans consist primarily of multifamily commercial real estate and other commercial real estate exposures that are well-collateralized, and the Company continues to closely monitor their cash flows. Management does not currently expect material losses on these credits and is actively engaged in credit oversight and timely execution of workout strategies.

Total deposits decreased $72.2 million from December 31, 2025 to $5.46 billion at March 31, 2026 and increased $1.3 million when compared to March 31, 2025. The year-to-date decrease in total deposits was primarily due to a decrease in interest-bearing deposits of $39.7 million, a decrease in noninterest-bearing deposits of $20.5 million and a decrease in money market and savings accounts of $19.3 million. These decreases were partially offset by an increase in time deposits of $7.3 million. Core deposits, which exclude municipal deposits, increased by $25.3 million, or 0.6%, during the same period.

Uninsured deposits were $933.0 million, or 17.1% of total deposits, at March 31, 2026. Uninsured deposits, excluding deposits secured with pledged collateral, were $786.0 million, or 14.4% of total deposits, at March 31, 2026. At March 31, 2026, the available liquidity was $1.82 billion, including $340.8 million in cash and cash equivalents, $328.0 million in unpledged securities, $777.6 million in secured borrowing capacity at the FHLB and $376.3 million in unsecured lines of credit with other correspondent banks.

Total stockholders’ equity increased $12.8 million, or 2.2%, when compared to December 31, 2025, primarily due to current year earnings, partially offset by cash dividends paid and an increase in accumulated other comprehensive losses. As of March 31, 2026 and 2025, the ratio of total equity to total assets was 9.71% and 8.94%, respectively. As of March 31, 2026, the ratio of total tangible equity to total tangible assets(1) was 8.37%, compared to 8.06% and 7.46% as of December 31, 2025 and March 31, 2025, respectively. The Company’s Tier 1 and Total Risk-Based Capital Ratios at March 31, 2026 were 11.60% and 14.08%, respectively.

Net interest income was $52.6 million for the first quarter of 2026, compared to $50.2 million for the fourth quarter of 2025 and $45.9 million for the first quarter of 2025. The increase in net interest income when compared to the fourth quarter of 2025 was primarily due to a decrease in interest expense on deposits of $3.0 million, a decrease in interest expense on long-term borrowings of $608 thousand and a decrease of $246 thousand in interest expense on short-term borrowings. The decrease in interest expense on long-term borrowings is due to a new debt issuance of $60 million during the fourth quarter 2025, which replaced $45 million of subordinated debt that was redeemed at the end of the fourth quarter 2025. These favorable changes were partially offset by a decrease in interest income on loans of $1.3 million and a decrease in interest income on deposits at other banks of $352 thousand. The increase in net interest income was $6.7 million when compared to the first quarter of 2025, and was primarily due to a decrease in interest expense on deposits of $3.8 million, an increase in interest and fees on loans of $3.3 million and a decrease in interest expense on short-term borrowings of $598 thousand. These favorable changes were partially offset by a decrease in interest on deposits with other banks of $951 thousand and an increase in interest expense on long-term borrowings of $207 thousand. The decrease in interest expense on deposits is reflective of the rate reductions during 2025.

The Company’s NIM increased to 3.64% for the first quarter of 2026 from 3.43% for the fourth quarter of 2025, primarily due to lower interest expense on deposits. NIM excluding accretion increased for the comparable periods from 3.24% to 3.35%. Excluding accretion interest income, loan yields decreased 1 bp and funding costs decreased 13 bps for the comparable periods. Interest expense for the first quarter of 2026 decreased $3.9 million compared to the fourth quarter of 2025, primarily due to lower rates during the quarter and the absence of the write-offs of merger-related interest rate marks on certain deposit products in the fourth quarter of 2025. The Company’s NIM increased to 3.64% for the first quarter of 2026 from 3.21% for the first quarter of 2025. The Company’s average interest-earning asset yield increased to 5.44% for the first quarter of 2026 from 5.32% for the first quarter of 2025, while the average cost of funds decreased 30 bps to 1.90% from 2.20% for the same periods.

The provision for credit losses was $85 thousand for the three months ended March 31, 2026. The comparable amounts were $2.8 million for the three months ended December 31, 2025 and $1.0 million for the three months ended March 31, 2025. The decrease in the provision for credit losses for the first quarter of 2026 compared to the fourth quarter of 2025 was due to lower reserves resulting from lower loan balances and recoveries of certain charged-off loans, partially offset by the absence by the large charge-off driven by a commercial real estate loan in the fourth quarter of 2025. Coverage ratios increased to 1.21% at March 31, 2026 from 1.20% at December 31, 2025, and remained flat compared to March 31, 2025. Net charge-offs decreased to $847 thousand for the first quarter of 2026 compared to $3.6 million for the fourth quarter of 2025 and $554 thousand for the first quarter of 2025. The decrease was driven by the absence of the large commercial real estate write-down in the fourth quarter of 2025 and recoveries of previous write-downs of $409 thousand during the quarter.

Total noninterest expense of $37.1 million for the first quarter of 2026 increased $1.6 million compared to $35.5 million for the fourth quarter of 2025, and increased $3.3 million compared to $33.7 million for the first quarter of 2025. The increase from the fourth quarter of 2025 was primarily due to salaries and employee benefit expenses increasing $1.1 million and professional service fees increasing $368 thousand. The increase in salaries and employee benefits are primarily related to higher health care costs and one-time employee incentive related expense. The increase from the first quarter of 2025 was primarily due to an increase in salaries and employee benefits expense of $3.2 million and an increase in software and data processing costs of $449 thousand, partially offset by a decrease in amortization of other intangible assets of $298 thousand.

This news release contains statements relating to future events or our future results that are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking statements in other documents filed with or furnished to the Securities and Exchange Commission, and our senior management may make forward-looking statements orally to investors, analysts, representatives of the media, and others. Forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend,” “potential,” “target,” “plan,” “goal,” or words of similar meaning, or future or conditional verbs such as “could,” “would,” or “may.” Forward-looking statements include statements of our goals, intentions, or expectations; statements regarding our business plans, prospects, growth, or operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. We caution that the forward-looking statements are based largely on our expectations and information available at the time the statements are made and are subject to known and unknown risks and uncertainties that are subject to change based on factors, which in many instances are beyond our control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. You should bear this in mind when reading this news release and not place undue reliance on these forward-looking statements.

The factors that could cause actual results to differ materially from those expressed in such forward-looking statements include, but are not limited to, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the Securities and Exchange Commission and the following: local, regional and global business, economic and political conditions and geopolitical events; changes in laws, rules and regulatory requirements, including capital and liquidity requirements; changes in consumer and business confidence, investor sentiment, and consumer spending and savings behavior; changes in the level of inflation; changes in monetary and fiscal policies; changes in trade policies, including the imposition of tariffs and retaliatory responses; changes in the demand for loans, deposits, and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; changes in FDIC assessments; changes in the interest rate environment; changes in income tax laws and regulations; our ability to manage effectively our capital and liquidity; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; changes in credit ratings assigned to us; competitive pressures among financial services companies; technology changes instituted by us, our counterparties, or competitors; the ability to attract, develop, and retain qualified employees; change in federal government enforcement of federal laws affecting the cannabis industry; our ability to maintain the security of our financial, accounting, technology, data processing and other operational systems and facilities; our ability to effectively defend ourselves against cyber-attacks and other attempts by unauthorized parties to access our information or information of our customers or to disrupt our systems; our ability to withstand disruptions that may be caused by any failure of our operational systems or those of third parties; our ability to control expenses; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; and the impact of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond our control.


											Q1 2026 vs.		Q1 2026 vs.
($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2025		Q1 2025
PROFITABILITY FOR THE PERIOD
Taxable-equivalent net interest income	$	52,644	$	50,294	$	48,501	$	47,244	$	45,979	4.7	%	14.5	%
Less: Taxable-equivalent adjustment	89		92		83		81		81		(3.3)		9.9
Net interest income	52,555		50,202		48,418		47,163		45,898		4.7		14.5
Provision for credit losses	85		2,827		2,992		1,528		1,028		(97.0)		(91.7)
Noninterest income	7,244		8,906		7,938		9,406		7,134		(18.7)		1.5
Noninterest expense	37,056		35,499		34,379		34,410		33,747		4.4		9.8
Income before income taxes	22,658		20,782		18,985		20,631		18,257		9.0		24.1
Income tax expense	5,570		4,895		4,637		5,124		4,493		13.8		24.0
NET INCOME	$	17,088	$	15,887	$	14,348	$	15,507	$	13,764	7.6		24.1

Adjusted net income – non-GAAP(1)	$	18,581	$	17,416	$	15,889	$	17,215	$	15,481	6.7	%	20.0	%
Pre-tax pre-provision net income – non-GAAP(1)	22,743		23,609		21,977		22,159		19,285		(3.7)		17.9

Return on average assets – GAAP	1.12%		1.02%		0.95%		1.03%		0.91%		10	bp	21	bp
Adjusted return on average assets – non-GAAP	1.22		1.11		1.05		1.15		1.02		11		20
Return on average common equity – GAAP	11.55		10.79		9.96		11.13		10.20		76		135
Return on average tangible common equity – non-GAAP(1)	14.83		14.10		13.27		14.99		14.05		73		78
Net interest spread	2.80		2.48		2.45		2.37		2.27		32		53
Net interest margin	3.64		3.43		3.41		3.34		3.21		21		43
Efficiency ratio – GAAP	61.97		60.06		61.00		60.83		63.64		191		(167)
Adjusted efficiency ratio – non-GAAP(1)	58.57		56.59		57.30		56.73		59.25		198		(68)
Noninterest income to average assets	0.48		0.57		0.52		0.63		0.47		(9)		1
Noninterest expense to average assets	2.43		2.27		2.27		2.29		2.23		16		20
Net operating expense to average assets – GAAP	1.96		1.70		1.74		1.67		1.76		26		20
Net operating expense to average assets – non-GAAP(1)	1.83		1.57		1.61		1.51		1.61		26		22

PER SHARE DATA
Basic net income per common share	$	0.51	$	0.48	$	0.43	$	0.46	$	0.41	6.3	%	24.4	%
Diluted net income per common share	0.51		0.48		0.43		0.46		0.41		6.3		24.4
Dividends paid per common share	0.12		0.12		0.12		0.12		0.12		—		—
Book value per common share at period end	18.02		17.65		17.27		16.94		16.55		2.1		8.9
Tangible book value per common share at period end – non-GAAP(1)	15.30		14.87		14.43		14.03		13.58		2.9		12.7
Common share market value at period end	18.68		17.68		16.41		15.72		13.54		5.7		38.0
Common share intraday price:
High	$	20.68	$	19.22	$	17.67	$	15.88	$	17.24	7.6	%	20.0	%
Low	17.98		14.93		14.96		11.47		13.15		20.4		36.7

____________________________________


											Q1 2026 vs.		Q1 2026 vs.
($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2025		Q1 2025
AVERAGE BALANCE SHEET DATA
Loans	$	4,887,488	$	4,909,619	$	4,884,003	$	4,833,558	$	4,784,991	(0.5)	%	2.1	%
Investment securities	666,376		653,639		664,535		683,680		664,655		1.9		0.3
Earning assets	5,823,244		5,843,816		5,658,981		5,660,409		5,768,080		(0.4)		1.0
Assets	6,174,655		6,206,753		6,020,574		6,021,385		6,129,241		(0.5)		0.7
Deposits	5,438,914		5,452,082		5,280,252		5,297,567		5,417,514		(0.2)		0.4
FHLB advances	—		20,108		52,391		50,000		50,000		(100.0)		(100.0)
Subordinated debt & TRUPS	89,024		104,752		74,363		74,102		73,840		(15.0)		20.6
Stockholders’ equity	600,212		584,209		571,247		558,952		547,443		2.7		9.6

CREDIT QUALITY DATA
Net charge-offs	$	847	$	3,619	$	1,825	$	649	$	554	(76.6)	%	52.9	%

Nonaccrual loans	$	64,958	$	39,960	$	24,378	$	16,782	$	15,402	62.6	%	321.8	%
Loans 90 days past due and still accruing	—		255		153		215		894		(100.0)		(100.0)
Other real estate owned and repossessed property	3,414		2,992		3,552		2,636		2,608		14.1		30.9
Total nonperforming assets	$	68,372	$	43,207	$	28,083	$	19,633	$	18,904	58.2		261.7


											Q1 2026 vs.		Q1 2026 vs.
($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2025		Q1 2025
CAPITAL AND CREDIT QUALITY RATIOS
Period-end equity to assets – GAAP	9.71	%	9.42	%	9.19	%	9.36	%	8.94	%	29	bp	77	bp
Period-end tangible equity to tangible assets – non-GAAP(1)	8.37		8.06		7.80		7.88		7.46		31		91

Annualized net charge-offs to average loans	0.07	%	0.29	%	0.15	%	0.05	%	0.05	%	(22)	bp	2	bp

Allowance for credit losses as a percent of:
Period-end loans	1.21	%	1.20	%	1.22	%	1.21	%	1.21	%	1	bp	—	bp
Period-end nonaccrual loans	90.03		147.24		244.29		348.49		376.85		(5,721)		(28,682)
Period-end nonperforming assets	85.53		136.17		212.06		297.88		307.04		(5,064)		(22,151)

As a percent of total loans at period-end:
Nonaccrual loans	1.34	%	0.82	%	0.50	%	0.35	%	0.32	%	52	bp	102	bp

As a percent of total loans, other real estate owned and repossessed property at period-end:
Nonperforming assets	1.41	%	0.88	%	0.57	%	0.41	%	0.40	%	53	bp	101	bp

As a percent of total assets at period-end:
Nonaccrual loans	1.05	%	0.64	%	0.39	%	0.28	%	0.25	%	41	bp	80	bp
Nonperforming assets	1.10		0.69		0.45		0.33		0.31		41		79


																Q1 2026 vs.		Q1 2026 vs.
($ in thousands)	Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2025			Q4 2025		Q1 2025
Company Amounts
Common Equity Tier 1 Capital	$	525,849		$	510,729		$	496,709		$	483,947		$	470,223		2.96	%	11.83	%
Tier 1 Capital	556,096			540,897			526,794			513,952			500,149			2.81		11.19
Total Capital	674,811			660,451			627,055			618,793			603,928			2.17		11.74
Risk-Weighted Assets	4,794,374			4,852,573			4,867,237			4,890,679			4,823,833			(1.20)		(0.61)

Company Ratios
Common Equity Tier 1 Capital to Risk-Weighted Assets (“RWA”)	10.97		%	10.52		%	10.21		%	9.90		%	9.75		%	45	bp	122	bp
Tier 1 Capital to RWA	11.60			11.15			10.82			10.51			10.37			45		123
Total Capital to RWA	14.08			13.61			12.88			12.65			12.52			47		156
Tier 1 Capital to AA (Leverage)(2)	9.12			8.82			8.86			8.65			8.27			30		85

Bank Amounts
Common Equity Tier 1 Capital	$	583,733		$	569,183		$	559,212		$	546,630		$	534,824		2.56	%	9.14	%
Tier 1 Capital	583,733			569,183			559,212			546,630			534,824			2.56		9.14
Total Capital	643,627			629,746			620,034			607,235			594,550			2.20		8.25
Risk-Weighted Assets	4,791,223			4,844,639			4,864,871			4,888,558			4,821,975			(1.10)		(0.64)

Bank Ratios
Common Equity Tier 1 Capital to RWA	12.18		%	11.75		%	11.49		%	11.18		%	11.09		%	43	bp	109	bp
Tier 1 Capital to RWA	12.18			11.75			11.49			11.18			11.09			43		109
Total Capital to RWA	13.43			13.00			12.75			12.42			12.33			43		110
Tier 1 Capital to AA (Leverage)(2)	9.58			9.30			9.41			9.20			8.84			28		74


											March 31, 2026		March 31, 2026
											compared to		compared to
($ in thousands, except per share data)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2025		March 31, 2025
	(unaudited)				(unaudited)		(unaudited)		(unaudited)
ASSETS
Cash and due from banks	$	44,054	$	50,164	$	62,289	$	54,512	$	46,886	(12.2)	%	(6.0)	%
Interest-bearing deposits with other banks	296,768		305,402		354,224		130,472		342,120		(2.8)		(13.3)
Cash and cash equivalents	340,822		355,566		416,513		184,984		389,006		(4.1)		(12.4)
Investment securities:
Available for sale, at fair value	264,026		220,358		181,720		187,679		179,148		19.8		47.4
Held to maturity, net of allowance for credit losses	393,615		414,827		433,440		459,246		469,572		(5.1)		(16.2)
Equity securities, at fair value	6,195		6,186		6,113		6,010		5,945		0.1		4.2
Restricted securities, at cost	18,003		17,989		20,364		20,412		20,411		0.1		(11.8)
Loans held for sale, at fair value	24,034		32,540		21,500		34,319		15,717		(26.1)		52.9
Loans held for investment	4,848,030		4,900,302		4,882,969		4,827,628		4,777,489		(1.1)		1.5
Less: allowance for credit losses	(58,481)		(58,836)		(59,554)		(58,483)		(58,042)		(0.6)		0.8
Loans, net	4,789,549		4,841,466		4,823,415		4,769,145		4,719,447		(1.1)		1.5

Premises and equipment, net	80,137		80,168		80,812		81,426		81,692		—		(1.9)
Goodwill	63,266		63,266		63,266		63,266		63,266		—		—
Other intangible assets, net	27,742		29,722		31,722		33,761		36,033		(6.7)		(23.0)
Right-of-use assets	10,102		10,523		10,896		11,052		11,709		(4.0)		(13.7)
Cash surrender value on life insurance	106,684		105,839		105,055		105,860		105,040		0.8		1.6
Accrued interest receivable	20,676		18,551		20,408		19,821		20,555		11.5		0.6
Deferred income taxes	29,752		29,825		30,328		30,972		31,428		(0.2)		(5.3)
Other assets	31,460		31,992		32,927		29,921		27,594		(1.7)		14.0
TOTAL ASSETS	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874	$	6,176,563	(0.8)		0.5


											March 31, 2026		March 31, 2026
											compared to		compared to
($ in thousands, except per share data)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2025		March 31, 2025
	(unaudited)				(unaudited)		(unaudited)		(unaudited)
LIABILITIES
Deposits:
Noninterest-bearing	$	1,567,425	$	1,587,953	$	1,594,212	$	1,575,120	$	1,565,017	(1.3)	%	0.2	%
Interest-bearing checking	812,847		852,585		851,963		763,309		852,480		(4.7)		(4.6)
Money market and savings	1,795,619		1,814,928		1,790,001		1,691,438		1,800,529		(1.1)		(0.3)
Time deposits	1,274,766		1,267,487		1,281,132		1,273,285		1,242,319		0.6		2.6
Brokered deposits	10,963		10,911		10,857		10,806		—		0.5		—
Total deposits	5,461,620		5,533,864		5,528,165		5,313,958		5,460,345		(1.3)		—

FHLB advances	—		—		50,000		50,000		50,000		—		(100.0)
Guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”), net	30,247		30,168		30,085		30,005		29,926		0.3		1.1
Subordinated debt, net	58,782		58,893		44,409		44,236		44,053		(0.2)		33.4
Total borrowings	89,029		89,061		124,494		124,241		123,979		—		(28.2)
Lease liabilities	10,608		11,027		11,395		11,541		12,183		(3.8)		(12.9)
Other liabilities	42,092		34,993		37,218		22,940		27,586		20.3		52.6
TOTAL LIABILITIES	5,603,349		5,668,945		5,701,272		5,472,680		5,624,093		(1.2)		(0.4)
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value per share	335		334		334		334		333		0.3		0.6
Additional paid-in capital	361,013		360,554		359,939		359,063		358,572		0.1		0.7
Retained earnings	246,636		233,578		221,693		211,400		199,898		5.6		23.4
Accumulated other comprehensive loss	(5,270)		(4,593)		(4,759)		(5,603)		(6,333)		14.7		(16.8)
TOTAL STOCKHOLDERS’ EQUITY	602,714		589,873		577,207		565,194		552,470		2.2		9.1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874	$	6,176,563	(0.8)		0.5

Shares of common stock issued and outstanding	33,451,063		33,413,503		33,421,672		33,374,265		33,374,265		0.1		0.2
Book value per common share at period end	$	18.02	$	17.65	$	17.27	$	16.94	$	16.55	2.1		8.9


											Q1 2026 vs.		Q1 2026 vs.
($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2025		Q1 2025
INTEREST INCOME
Interest on loans	$	70,814	$	72,092	$	70,693	$	69,607	$	67,516	(1.8)	%	4.9	%
Interest and dividends on taxable investment securities	5,114		5,010		5,036		5,331		5,001		2.1		2.3
Interest and dividends on tax-exempt investment securities	6		6		6		6		6		—		—

Interest on deposits with other banks	2,458		2,810		1,215		1,588		3,409		(12.5)		(27.9)
Total interest income	78,392		79,918		76,950		76,532		75,932		(1.9)		3.2

INTEREST EXPENSE
Interest on deposits	24,264		27,289		26,474		27,370		28,070		(11.1)		(13.6)
Interest on short-term borrowings	—		246		640		605		598		(100.0)		(100.0)
Interest on long-term borrowings	1,573		2,181		1,418		1,394		1,366		(27.9)		15.2
Total interest expense	25,837		29,716		28,532		29,369		30,034		(13.1)		(14.0)

NET INTEREST INCOME	52,555		50,202		48,418		47,163		45,898		4.7		14.5
Provision for credit losses	85		2,827		2,992		1,528		1,028		(97.0)		(91.7)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	52,470		47,375		45,426		45,635		44,870		10.8		16.9

NONINTEREST INCOME
Service charges on deposit accounts	1,596		1,663		1,599		1,519		1,514		(4.0)		5.4
Trust and investment fee income	1,137		1,042		898		942		823		9.1		38.2
Mortgage banking revenue	1,450		1,181		1,278		2,379		1,240		22.8		16.9
Interchange credits	1,698		1,862		1,858		1,788		1,577		(8.8)		7.7
Other noninterest income	1,363		3,158		2,305		2,778		1,980		(56.8)		(31.2)
Total noninterest income	$	7,244	$	8,906	$	7,938	$	9,406	$	7,134	(18.7)		1.5


											Q1 2026 vs.		Q1 2026 vs.
($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025		Q4 2025		Q1 2025
NONINTEREST EXPENSE
Salaries and employee benefits	$	19,639	$	18,582	$	18,642	$	17,742	$	16,440	5.7	%	19.5	%
Occupancy expense	2,567		2,461		2,406		2,472		2,538		4.3		1.1
Furniture and equipment expense	855		792		892		797		853		8.0		0.2
Software and data processing	5,140		5,197		5,155		4,819		4,691		(1.1)		9.6
Amortization of other intangible assets	1,980		2,000		2,039		2,272		2,278		(1.0)		(13.1)
Legal and professional fees	1,605		1,237		989		1,225		1,613		29.7		(0.5)
FDIC insurance premium expense	995		845		794		1,023		1,091		17.8		(8.8)
Marketing and advertising	311		367		315		384		254		(15.3)		22.4
Fraud losses	111		227		45		83		105		(51.1)		5.7

Other noninterest expense	3,853		3,791		3,102		3,593		3,884		1.6		(0.8)
Total noninterest expense	37,056		35,499		34,379		34,410		33,747		4.4		9.8

Income before income taxes	22,658		20,782		18,985		20,631		18,257		9.0		24.1
Income tax expense	5,570		4,895		4,637		5,124		4,493		13.8		24.0
NET INCOME	$	17,088	$	15,887	$	14,348	$	15,507	$	13,764	7.6		24.1

Weighted average shares outstanding – basic	33,428,444		33,426,198		33,419,291		33,374,265		33,350,869		0.0	%	0.2	%
Weighted average shares outstanding – diluted	33,447,767		33,446,103		33,435,862		33,388,013		33,375,318		0.0	%	0.2	%

Basic net income per common share	$	0.51	$	0.48	$	0.43	$	0.46	$	0.41	6.3	%	24.4	%
Diluted net income per common share	$	0.51	$	0.48	$	0.43	$	0.46	$	0.41	6.3	%	24.4	%

Dividends paid per common share	$	0.12	$	0.12	$	0.12	$	0.12	$	0.12	—	%	—	%


	Three Months Ended
	March 31, 2026						December 31, 2025						March 31, 2025
($ in thousands)	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate
Earning assets
Loans(1), (2), (3)
Commercial real estate	$	2,601,316	$	39,029	6.08	%	$	2,624,581	$	38,796	5.86	%	$	2,541,527	$	35,822	5.72	%
Residential real estate	1,450,114		19,311		5.33		1,442,055		19,477		5.40		1,347,035		18,433		5.47
Construction	347,973		5,631		6.56		343,796		5,740		6.62		352,323		5,526		6.36
Commercial	221,542		3,296		6.03		219,874		4,326		7.81		232,900		3,695		6.43
Consumer	262,174		3,534		5.47		274,715		3,711		5.36		304,520		4,042		5.38
Credit cards	4,369		100		9.29		4,598		132		11.40		6,686		77		4.67
Total loans	4,887,488		70,901		5.86		4,909,619		72,182		5.85		4,784,991		67,595		5.71

Investment securities
Taxable	665,729		5,114		3.07		652,990		5,010		3.07		664,002		5,001		3.01
Tax-exempt(1)	647		8		4.95		649		8		4.93		653		8		4.90

Interest-bearing deposits	269,380		2,458		3.70		280,558		2,810		3.97		318,434		3,409		4.34
Total earning assets	5,823,244		78,481		5.44		5,843,816		80,010		5.45		5,768,080		76,013		5.32
Cash and due from banks	44,182						51,611						43,526
Other assets	365,971						371,205						375,929
Allowance for credit losses	(58,742)						(59,879)						(58,294)
Total assets	$	6,174,655					$	6,206,753					$	6,129,241


	Three Months Ended
	March 31, 2026						December 31, 2025						March 31, 2025
($ in thousands)	Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate		Average Balance		Interest		Yield/Rate





















Interest-bearing liabilities
Interest-bearing checking	$	780,713	$	4,840	2.51	%	$	768,769	$	5,386	2.78	%	$	859,698	$	7,025	3.31	%
Money market and savings deposits	1,812,071		8,696		1.95		1,784,972		9,373		2.08		1,799,707		10,015		2.26
Time deposits	1,270,156		10,624		3.39		1,277,732		12,425		3.86		1,208,250		11,030		3.70
Brokered deposits	11,107		104		3.80		10,942		105		3.81		—		—		—
Interest-bearing deposits(4)	3,874,047		24,264		2.54		3,842,415		27,289		2.82		3,867,655		28,070		2.94

FHLB advances	—		—		—		20,108		246		4.85		50,000		598		4.85
Subordinated debt and guaranteed preferred beneficial interest in junior subordinated debentures (“TRUPS”)(4)	89,024		1,573		7.17		104,752		2,181		8.26		73,840		1,366		7.50
Total interest-bearing liabilities	3,963,071		25,837		2.64		3,967,275		29,716		2.97		3,991,495		30,034		3.05
Noninterest-bearing deposits	1,564,867						1,609,667						1,549,859
Accrued expenses and other liabilities	46,505						45,602						40,444
Stockholders’ equity	600,212						584,209						547,443
Total liabilities and stockholders’ equity	$	6,174,655					$	6,206,753					$	6,129,241

Net interest spread					2.80	%					2.48	%					2.27	%
Net interest margin					3.64						3.43						3.21
Net interest margin excluding accretion(3)					3.35						3.24						2.99
Cost of funds					1.90						2.11						2.20
Cost of deposits					1.81						1.99						2.10
Cost of debt					7.17						7.71						6.43


	Quarter to Date
($ in thousands, except per share data)	Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2025
The following reconciles return on average assets, average equity and return on average tangible common equity(1):
Net income	$	17,088		$	15,887		$	14,348		$	15,507		$	13,764
Annualized net income (A)	$	69,301		$	63,030		$	56,924		$	62,198		$	55,821

Net income	$	17,088		$	15,887		$	14,348		$	15,507		$	13,764
Add: amortization of other intangible assets, net of tax	1,493			1,529			1,541			1,708			1,717
Net income excluding amortization of other intangible assets – non-GAAP	18,581			17,416			15,889			17,215			15,481
Annualized net income excluding amortization of other intangible assets – non-GAAP (B)	$	75,356		$	69,096		$	63,038		$	69,049		$	62,784

Net income	$	17,088		$	15,887		$	14,348		$	15,507		$	13,764
Add: amortization of other intangible assets, net of tax	1,493			1,529			1,541			1,708			1,717



Adjusted net income – non-GAAP	18,581			17,416			15,889			17,215			15,481
Annualized adjusted net income – non-GAAP (C)	$	75,356		$	69,096		$	63,038		$	69,049		$	62,784

Net income	$	17,088		$	15,887		$	14,348		$	15,507		$	13,764
Less: income tax expense	5,570			4,895			4,637			5,124			4,493
Less: provision for credit losses	85			2,827			2,992			1,528			1,028
Pre-tax pre-provision net income – non-GAAP	$	22,743		$	23,609		$	21,977		$	22,159		$	19,285

Return on average assets – GAAP	1.12		%	1.02		%	0.95		%	1.03		%	0.91		%
Adjusted return on average assets – non-GAAP	1.22		%	1.11		%	1.05		%	1.15		%	1.02		%

Average assets	$	6,174,655		$	6,206,753		$	6,020,574		$	6,021,385		$	6,129,241

Average stockholders’ equity (D)	$	600,212		$	584,209		$	571,247		$	558,952		$	547,443
Less: average goodwill and core deposit intangible	(92,086)			(94,059)			(96,074)			(98,241)			(100,514)
Average tangible common equity (E)	$	508,126		$	490,150		$	475,173		$	460,711		$	446,929

Return on average common equity – GAAP (A)/(D)	11.55		%	10.79		%	9.96		%	11.13		%	10.20		%
Return on average tangible common equity – non-GAAP (B)/(E)	14.83		%	14.10		%	13.27		%	14.99		%	14.05		%
Adjusted return on average tangible common equity – non-GAAP (C)/(E)	14.83		%	14.10		%	13.27		%	14.99		%	14.05		%


	Quarter to Date
($ in thousands, except per share data)	Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2025
The following reconciles efficiency ratio – GAAP and adjusted efficiency ratio – non-GAAP(2):
Noninterest expense (F)	$	37,056		$	35,499		$	34,379		$	34,410		$	33,747
Less: amortization of other intangible assets	(1,980)			(2,000)			(2,039)			(2,272)			(2,278)


Adjusted noninterest expense (G)	$	35,076		$	33,499		$	32,340		$	32,138		$	31,469

Net interest income (H)	$	52,555		$	50,202		$	48,418		$	47,163		$	45,898
Add: taxable-equivalent adjustment	89			92			83			81			81
Taxable-equivalent net interest income (I)	$	52,644		$	50,294		$	48,501		$	47,244		$	45,979

Noninterest income (J)	$	7,244		$	8,906		$	7,938		$	9,406		$	7,134



Adjusted noninterest income (K)	$	7,244		$	8,906		$	7,938		$	9,406		$	7,134

Efficiency ratio – GAAP (F)/(H)+(J)	61.97		%	60.06		%	61.00		%	60.83		%	63.64		%
Adjusted efficiency ratio – non-GAAP (G)/(I)+(K)	58.57		%	56.59		%	57.30		%	56.73		%	59.25		%

Net operating expense to average assets – GAAP	1.96		%	1.70		%	1.74		%	1.67		%	1.76		%
Adjusted net operating expense to average assets – non-GAAP	1.83		%	1.57		%	1.61		%	1.51		%	1.61		%


($ in thousands, except per share data)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025

The following reconciles book value per common share and tangible book value per common share(1):
Stockholders’ equity (L)	$	602,714	$	589,873	$	577,207	$	565,194	$	552,470
Less: goodwill and core deposit intangible	(91,008)		(92,988)		(94,988)		(97,027)		(99,299)
Tangible common equity (M)	$	511,706	$	496,885	$	482,219	$	468,167	$	453,171

Shares of common stock outstanding (N)	33,451,063		33,413,503		33,421,672		33,374,265		33,374,265

Book value per common share – GAAP (L)/(N)	$	18.02	$	17.65	$	17.27	$	16.94	$	16.55
Tangible book value per common share – non-GAAP (M)/(N)	$	15.30	$	14.87	$	14.43	$	14.03	$	13.58

The following reconciles equity to assets and tangible common equity to tangible assets(1):
Stockholders’ equity (O)	$	602,714	$	589,873	$	577,207	$	565,194	$	552,470
Less: goodwill and core deposit intangible	(91,008)		(92,988)		(94,988)		(97,027)		(99,299)
Tangible common equity (P)	$	511,706	$	496,885	$	482,219	$	468,167	$	453,171

Assets (Q)	$	6,206,063	$	6,258,818	$	6,278,479	$	6,037,874	$	6,176,563
Less: goodwill and core deposit intangible	(91,008)		(92,988)		(94,988)		(97,027)		(99,299)
Tangible assets (R)	$	6,115,055	$	6,165,830	$	6,183,491	$	5,940,847	$	6,077,264

Period-end equity to assets – GAAP (O)/(Q)	9.71%		9.42%		9.19%		9.36%		8.94%
Period-end tangible common equity to tangible assets – non-GAAP (P)/(R)	8.37%		8.06%		7.80%		7.88%		7.46%


Regulatory Capital and Ratios for the Company
($ in thousands)	Q1 2026			Q4 2025			Q3 2025			Q2 2025			Q1 2025
Common equity	$	602,714		$	589,873		$	577,207		$	565,194		$	552,470
Goodwill(1)	(61,061)			(61,123)			(61,176)			(61,238)			(61,300)
Core deposit intangible(2)	(21,074)			(22,566)			(24,041)			(25,573)			(27,280)
DTAs that arise from net operating loss and tax credit carryforwards	—			(48)			(40)			(39)			—
Accumulated other comprehensive loss	5,270			4,593			4,759			5,603			6,333
Common Equity Tier 1 Capital	525,849			510,729			496,709			483,947			470,223
TRUPS	30,247			30,168			30,085			30,005			29,926
Tier 1 Capital	556,096			540,897			526,794			513,952			500,149
Allowable reserve for credit losses and other Tier 2 adjustments	59,933			60,661			60,852			60,605			59,726
Subordinated debt	58,782			58,893			39,409			44,236			44,053
Total Capital	$	674,811		$	660,451		$	627,055		$	618,793		$	603,928

Risk-Weighted Assets (“RWA”)	$	4,794,374		$	4,852,573		$	4,867,237		$	4,890,679		$	4,823,833
Average Assets (“AA”)	6,098,196			6,129,306			5,942,911			5,943,124			6,050,310

Common Equity Tier 1 Capital to RWA	10.97		%	10.52		%	10.21		%	9.90		%	9.75		%
Tier 1 Capital to RWA	11.60			11.15			10.82			10.51			10.37
Total Capital to RWA	14.08			13.61			12.88			12.65			12.52
Tier 1 Capital to AA (Leverage)	9.12			8.82			8.86			8.65			8.27


Regulatory Capital and Ratios for the Bank
($ in thousands)	Q1 2026		Q4 2025		Q3 2025		Q2 2025		Q1 2025
Common equity	$	660,598	$	648,279	$	639,670	$	627,838	$	617,071
Goodwill(1)	(61,061)		(61,123)		(61,176)		(61,238)		(61,300)
Core deposit intangible(2)	(21,074)		(22,566)		(24,041)		(25,573)		(27,280)

Accumulated other comprehensive loss	5,270		4,593		4,759		5,603		6,333
Common Equity Tier 1 Capital	583,733		569,183		559,212		546,630		534,824

Tier 1 Capital	583,733		569,183		559,212		546,630		534,824
Allowable reserve for credit losses and other Tier 2 adjustments	59,894		60,563		60,822		60,605		59,726

Total Capital	$	643,627	$	629,746	$	620,034	$	607,235	$	594,550

Risk-Weighted Assets (“RWA”)	$	4,791,223	$	4,844,639	$	4,864,871	$	4,888,558	$	4,821,975
Average Assets (“AA”)	6,093,905		6,122,775		5,939,890		5,940,411		6,050,130


($ in thousands)	March 31, 2026		% of Total Loans		December 31, 2025		% of Total Loans		September 30, 2025		% of Total Loans		June 30, 2025		% of Total Loans		March 31, 2025		% of Total Loans
Commercial real estate	$	2,599,815	53.62	%	$	2,643,996	53.95	%	$	2,642,601	54.12	%	$	2,603,974	53.95	%	$	2,544,107	53.25	%
Residential real estate	1,425,733		29.41		1,414,964		28.88		1,383,348		28.33		1,349,010		27.94		1,325,858		27.75
Construction	342,835		7.07		344,903		7.04		352,116		7.21		350,053		7.25		366,218		7.67
Commercial	220,833		4.56		226,006		4.61		221,598		4.54		224,092		4.64		234,499		4.91
Consumer	254,478		5.25		265,912		5.43		278,242		5.70		294,239		6.09		300,007		6.28
Credit cards	4,336		0.09		4,521		0.09		5,064		0.10		6,260		0.13		6,800		0.14
Total loans	4,848,030		100.00	%	4,900,302		100.00	%	4,882,969		100.00	%	4,827,628		100.00	%	4,777,489		100.00	%
Less: allowance for credit losses	(58,481)				(58,836)				(59,554)				(58,483)				(58,042)
Total loans, net	$	4,789,549			$	4,841,466			$	4,823,415			$	4,769,145			$	4,719,447


($ in thousands)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Classified loans
Substandard	$	82,337		$	57,366		$	48,470		$	19,930		$	19,434
Total classified loans	82,337			57,366			48,470			19,930			19,434
Special mention loans	97,771			73,401			70,997			65,564			33,456
Total classified and special mention loans	$	180,108		$	130,767		$	119,467		$	85,494		$	52,890

Classified loans	$	82,337		$	57,366		$	48,470		$	19,930		$	19,434
Other real estate owned	69			113			120			179			179
Repossessed assets	3,345			2,879			3,432			2,457			2,429
Total classified assets	$	85,751		$	60,358		$	52,022		$	22,566		$	22,042

Classified assets to total assets	1.38		%	0.96		%	0.83		%	0.37		%	0.36		%

Nonaccrual loans	$	64,958		$	39,960		$	24,378		$	16,782		$	15,402
90+ days delinquent accruing	—			255			153			215			894
Other real estate owned (“OREO”)	69			113			120			179			179
Repossessed property	3,345			2,879			3,432			2,457			2,429
Total nonperforming assets	$	68,372		$	43,207		$	28,083		$	19,633		$	18,904
Accruing borrowers experiencing financial difficulty loans (“BEFD”)	5,263			5,311			6,704			6,709			1,356
Total nonperforming assets and BEFDs modifications	$	73,635		$	48,518		$	34,787		$	26,342		$	20,260

Nonperforming assets to total assets	1.10		%	0.69		%	0.45		%	0.33		%	0.31		%

Total assets	$	6,206,063		$	6,258,818		$	6,278,479		$	6,037,874		$	6,176,563


LTV Range ($ in thousands)	Loan Count	Loan Balance		% of Office CRE
Less than or equal to 50%	234	$	167,305	34.8	%
Greater than 50% and less than or equal to 60%	75	122,649		25.5
Greater than 60% and less than or equal to 70%	92	142,127		29.6
Greater than 70% and less than or equal to 80%	52	37,694		7.8
Greater than 80%	14	11,075		2.3
Total	467	$	480,850	100.0	%