ATLANTIC UNION BANKSHARES CORPORATION

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q




☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2026

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-39325

ATLANTIC UNION BANKSHARES CORPORATION

(Exact name of registrant as specified in its charter)


Virginia	54-1598552
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

4300 Cox Road

Glen Allen, Virginia 23060

(Address of principal executive offices) (Zip Code)

(804) 633-5031

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $1.33 per share		AUB		The New York Stock Exchange
Depositary Shares, Each Representing a 1/400^th Interest in a Share of 6.875% Perpetual Non-Cumulative Preferred Stock, Series A		AUB.PRA		The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐
		Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


	Yes ☐ No ☒

The number of shares of common stock outstanding as of July 30, 2026 was 142,814,896.

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION

FORM 10-Q

INDEX


ITEM		PAGE

	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025 (audited)	2

	Consolidated Statements of Income (unaudited) for the three and six months ended June 30, 2026 and June 30, 2025	3

	Consolidated Statements of Comprehensive Income (Loss) (unaudited) for the three and six months ended June 30, 2026 and June 30, 2025	4

	Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the six months ended June 30, 2026 and June 30, 2025	5

	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2026 and June 30, 2025	6

	Notes to the Consolidated Financial Statements (unaudited)	8

	Report of Independent Registered Public Accounting Firm	56

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	57

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	95

Item 4.	Controls and Procedures	98

	PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	98

Item 1A.	Risk Factors	98

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	99

Item 5.	Other Information	99

Item 6.	Exhibits	100

	Signatures	101

Table of Contents

Glossary of Acronyms and Defined Terms

In this Quarterly Report on Form 10-Q, except as otherwise indicated or the context suggests otherwise, references to the “Company” refers to Atlantic Union Bankshares Corporation, a Virginia corporation, and the terms “we”, “us” and “our” refer to the Company and its direct and indirect subsidiaries, including Atlantic Union Bank, which we refer to as the “Bank.” The “Federal Reserve” refers to the Board of Governors of the Federal Reserve System, our primary federal regulator.

“Our common stock” refers to the Company’s common stock, par value $1.33 per share, and the term “depositary shares” means the Company’s depositary shares, each representing a 1/400th ownership interest in a share of the Company’s Series A preferred stock, with a liquidation preference of $10 thousand per share of Series A preferred stock (equivalent to $25 per depositary share). “Series A preferred stock” refers to the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, par value $10.00 per share.

“Sandy Spring” refers to Sandy Spring Bancorp, Inc., which we acquired on April 1, 2025, pursuant to the Agreement and Plan of Merger dated October 21, 2024, by and between the Company and Sandy Spring, which we refer to as the “Sandy Spring merger agreement.”

The “Forward Sale Agreements” refers to the forward sale agreements between the Company and Morgan Stanley & Co. LLC, as forward purchaser (the “Forward Purchaser”), each dated as of October 21, 2024, in connection with which the Forward Purchaser or its affiliate borrowed from third parties an aggregate of 11,338,028 shares of our common stock for sale in a registered public offering. On October 21, 2024, the Company entered into an underwriting agreement with the Forward Purchaser and Morgan Stanley & Co. LLC as forward seller (the “Forward Seller”), relating to the registered public offering.


2025 Form 10-K	–	Annual Report on Form 10-K for the year ended December 31, 2025
2029 Subordinated Notes	–	Subordinated debt of $168.0 million acquired in Sandy Spring acquisition on April 1, 2025, for
		which a conditional notice of redemption has been issued, and which may be redeemed
		using net proceeds from 2036 Subordinated Notes issuance
2036 Subordinated Notes	–	Subordinated debt of $250.0 million issued by the Company on July 30, 2026 due
		August 1, 2036
ACL	–	Allowance for credit losses
AFS	–	Available for sale
ALLL	–	Allowance for loan and lease losses, a component of the ACL
AOCI	–	Accumulated other comprehensive income (loss)
ASC	–	Accounting Standards Codification
ASU	–	Accounting Standards Update
Bearing Insurance	–	Bearing Insurance Group, LLC
BOLI	–	Bank owned life insurance
bps	–	Basis points
CDI	–	Core deposit intangible
CECL	–	Current expected credit losses
CFPB	–	Consumer Financial Protection Bureau
CRE	–	Commercial real estate
CSP	–	Cary Street Partners LLC
EPS	–	Earnings per common share
Exchange Act	–	Securities Exchange Act of 1934, as amended
FASB	–	Financial Accounting Standards Board
FDIC	–	Federal Deposit Insurance Corporation
FRB	–	Federal Reserve Bank of Richmond
FHLB	–	Federal Home Loan Bank of Atlanta
FOMC	–	Federal Open Market Committee
FTE	–	Fully taxable equivalent
GAAP	–	Accounting principles generally accepted in the United States
HTM	–	Held to maturity

Table of Contents

LHFI	–	Loans held for investment, net of unearned income
LHFS	–	Loans held for sale
MBS	–	Mortgage-Backed Securities
NDFI	–	Non-depository financial institutions
NPA	–	Nonperforming assets
NYSE	–	New York Stock Exchange
PCD	–	Purchased credit deteriorated
Repurchase Program	–	The share repurchase program, approved on May 5, 2026 by the Company’s Board of Directors,
		which authorized the repurchase of up to $250 million of the Company’s common stock
ROU	–	Right of Use
RUC	–	Reserve for unfunded commitments
SEC	–	U.S. Securities and Exchange Commission
SOFR	–	Secured Overnight Financing Rate
TLM	–	Troubled loan modification

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2026 AND DECEMBER 31, 2025

(Dollars in thousands, except share data)


	June 30,		December 31,
	2026		2025
ASSETS		(unaudited)		(audited)
Cash and cash equivalents:
Cash and due from banks	$	521,608	$	234,257
Interest-bearing deposits in other banks		452,419		706,014
Federal funds sold		16,270		26,191
Total cash and cash equivalents		990,297		966,462
Securities available for sale, at fair value		3,876,717		4,194,301
Securities held to maturity, at carrying value		860,906		884,216
Restricted stock, at cost		204,351		190,200
Loans held for sale		23,074		18,486
Loans held for investment, net of unearned income		28,673,271		27,796,167
Less: allowance for loan and lease losses		298,756		295,108
Total loans held for investment, net		28,374,515		27,501,059
Premises and equipment, net		163,241		166,752
Goodwill		1,754,875		1,733,287
Amortizable intangibles, net		284,962		315,544
Bank owned life insurance		679,507		672,890
Other assets		887,423		942,557
Total assets	$	38,099,868	$	37,585,754
LIABILITIES
Noninterest-bearing demand deposits	$	6,727,738	$	6,844,629
Interest-bearing deposits		23,740,519		23,627,007
Total deposits		30,468,257		30,471,636
Securities sold under agreements to repurchase		155,659		75,432
Other short-term borrowings		950,000		650,000
Long-term borrowings		775,681		771,860
Other liabilities		596,857		610,428
Total liabilities		32,946,454		32,579,356
Commitments and contingencies (Note 7)
STOCKHOLDERS' EQUITY
Preferred stock, $10.00 par value		173		173
Common stock, $1.33 par value		188,759		188,563
Additional paid-in capital		3,885,085		3,888,841
Retained earnings		1,356,190		1,184,908
Accumulated other comprehensive loss		(276,793)		(256,087)
Total stockholders' equity		5,153,414		5,006,398
Total liabilities and stockholders' equity	$	38,099,868	$	37,585,754

Common shares issued and outstanding		141,924,165		141,776,886
Common shares authorized		200,000,000		200,000,000
Preferred shares issued and outstanding		17,250		17,250
Preferred shares authorized		500,000		500,000

See accompanying notes to consolidated financial statements.

-2-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

(Dollars in thousands, except share and per share data)


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2026		2025		2026		2025
Interest and dividend income:
Interest and fees on loans	$	436,807	$	458,766	$	856,436	$	730,281
Interest on deposits in other banks		2,165		4,991		4,311		7,504
Interest and dividends on securities:
Taxable		38,973		38,260		79,980		61,908
Nontaxable		8,883		8,355		17,836		16,515
Total interest and dividend income		486,828		510,372		958,563		816,208
Interest expense:
Interest on deposits		146,438		171,343		288,217		286,929
Interest on short-term borrowings		5,327		4,147		10,554		5,056
Interest on long-term borrowings		9,945		13,511		22,301		18,687
Total interest expense		161,710		189,001		321,072		310,672
Net interest income		325,118		321,371		637,491		505,536
Provision for credit losses		11,737		105,707		14,475		123,345
Net interest income after provision for credit losses		313,381		215,664		623,016		382,191
Noninterest income:
Service charges on deposit accounts		12,259		12,220		24,374		21,905
Other service charges, commissions and fees		2,286		2,245		4,224		4,007
Interchange fees		3,750		3,779		7,076		6,727
Fiduciary and asset management fees		21,460		17,723		41,638		24,420
Mortgage banking income		2,656		2,821		4,682		3,794
Bank owned life insurance income		5,734		7,327		10,934		10,864
Loan-related interest rate swap fees		6,484		1,733		10,458		4,133
Other operating income		35,619		33,674		41,645		34,835
Total noninterest income		90,248		81,522		145,031		110,685
Noninterest expenses:
Salaries and benefits		112,309		109,942		225,722		185,357
Occupancy expenses		12,862		12,782		26,064		21,362
Furniture and equipment expenses		5,532		6,344		11,088		10,258
Technology and data processing		16,016		17,248		31,618		27,435
Professional services		6,154		7,808		11,922		12,494
Marketing and advertising expense		5,479		3,757		12,807		6,941
FDIC assessment premiums and other insurance		6,633		8,642		13,479		13,844
Franchise and other taxes		4,675		4,688		9,381		9,331
Loan-related expenses		2,723		1,278		5,574		2,527
Amortization of intangible assets		15,136		18,433		30,582		23,832
Merger-related costs		—		78,900		9,034		83,840
Other expenses		11,617		9,876		21,675		16,661
Total noninterest expenses		199,136		279,698		408,946		413,882
Income before income taxes		204,493		17,488		359,101		78,994
Income tax expense (benefit)		43,480		(2,303)		75,922		9,384
Net Income	$	161,013	$	19,791	$	283,179	$	69,610
Dividends on preferred stock		2,967		2,967		5,934		5,934
Net income available to common shareholders	$	158,046	$	16,824	$	277,245	$	63,676

Basic earnings per common share	$	1.11	$	0.12	$	1.95	$	0.55
Diluted earnings per common share	$	1.11	$	0.12	$	1.95	$	0.55
Dividends declared per common share	$	0.37	$	0.34	$	0.74	$	0.68
Basic weighted average number of common shares outstanding		142,099,251		141,680,472		142,000,975		115,596,296
Diluted weighted average number of common shares outstanding		142,320,806		141,738,325		142,301,002		116,056,670

See accompanying notes to consolidated financial statements.

-3-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

(Dollars in thousands)

Three Months Ended

Six Months Ended

June 30,

 

2026

 

2025

2026

 

2025

Net income

161,013

19,791

283,179

69,610

Other comprehensive income:

Cash flow hedges:

Change in fair value of cash flow hedges (net of tax, $640 and $1,853 for the three months and $1,234 and $4,940 for the six months ended June 30, 2026 and June 30, 2025, respectively)

(2,128)

6,202

(4,110)

16,538

AFS securities:

Unrealized holding gains (losses) arising during period (net of tax, $874 and $2,075 for the three months and $4,959 and $6,780 for the six months ended June 30, 2026 and June 30, 2025, respectively)

4,010

6,946

(16,528)

22,702

Reclassification adjustment for (gains) losses included in net income (net of tax, $1 and $4 for the three months and $2 and $20 for the six months ended June 30, 2026 and June 30, 2025, respectively) ⁽¹⁾

(3)

(12)

(4)

Bank owned life insurance:

Unrealized holding gains (losses) arising during the period

—

356

(10)

Reclassification adjustment for gains included in net income ⁽²⁾

(217)

(207)

(420)

(397)

Other comprehensive income (loss):

1,695

12,929

(20,706)

38,900

Comprehensive income

162,708

32,720

262,473

108,510

⁽¹⁾ The gross amounts reclassified into earnings are reported as "Other operating income" on the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense.

⁽²⁾ Reclassifications into earnings are reported in "Salaries and benefits" expense on the Company’s Consolidated Statements of Income.

See accompanying notes to consolidated financial statements.

-4-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

(Dollars in thousands, except share and per share amounts)

Accumulated

Additional

Other

Common

Preferred

Paid-In

Retained

Comprehensive

Stock

Capital

Earnings

Income (Loss)

Total

Balance - December 31, 2025

188,563

173

3,888,841

1,184,908

(256,087)

5,006,398

Net Income

122,165

Other comprehensive loss (net of taxes of $6,428)

(22,401)

Dividends on common stock ($0.37 per share)

(52,750)

Dividends on preferred stock ($171.88 per share)

(2,967)

Issuance of common stock under Equity Compensation Plans, stock issuance for services rendered, and vesting of restricted stock, net of shares held for taxes (283,610 shares)

377

(5,302)

(4,925)

Stock-based compensation expense

6,796

Balance - March 31, 2026

188,940

173

3,890,335

1,251,356

(278,488)

5,052,316

Net Income

161,013

Other comprehensive income (net of taxes of $233)

1,695

Dividends on common stock ($0.37 per share)

(53,212)

Dividends on preferred stock ($171.88 per share)

(2,967)

Common stock purchased under share repurchase program (264,961 shares)

(352)

(9,653)

(10,005)

Excise tax on common stock repurchased ⁽¹⁾

(100)

Issuance of common stock under Equity Compensation Plans, stock issuance for services rendered, and vesting of restricted stock, net of shares held for taxes (128,630 shares)

171

(1,682)

(1,511)

Stock-based compensation expense

6,185

Balance - June 30, 2026

188,759

173

3,885,085

1,356,190

(276,793)

5,153,414

⁽¹⁾ Represents the 1% excise tax related to the Repurchase Program based on the fair market value of common stock repurchased in the taxable year, reduced by the fair market value of any common stock issued during the same year, pursuant to the Inflation Reduction Act of 2022. The excise tax is recorded as part of the cost of certain treasury stock transactions.


									Accumulated
					Additional				Other
	Common		Preferred		Paid-In		Retained		Comprehensive
	Stock		Stock		Capital		Earnings		Income (Loss)		Total
Balance - December 31, 2024	$	118,519	$	173	$	2,280,547	$	1,103,326	$	(359,686)	$	3,142,879
Net Income								49,818				49,818
Other comprehensive income (net of taxes of $6,957)										25,971		25,971
Dividends on common stock ($0.34 per share)								(30,542)				(30,542)
Dividends on preferred stock ($171.88 per share)								(2,967)				(2,967)
Issuance of common stock under Equity Compensation Plans, stock issuance for services rendered, and vesting of restricted stock, net of shares held for taxes (228,311 shares)		304				(3,698)						(3,394)
Stock-based compensation expense						3,451						3,451
Balance - March 31, 2025	$	118,823	$	173	$	2,280,300	$	1,119,635	$	(333,715)	$	3,185,216
Net Income								19,791				19,791
Other comprehensive income (net of taxes of $3,924)										12,929		12,929
Issuance of common stock in regard to acquisition (41,000,004 shares)		54,530				1,220,717						1,275,247
Dividends on common stock ($0.34 per share)						75		(48,492)				(48,417)
Dividends on preferred stock ($171.88 per share)								(2,967)				(2,967)
Issuance of common stock in regard to forward sale settlement (11,338,028 shares)		15,080				369,883						384,963
Issuance of common stock under Equity Compensation Plans, stock issuance for services rendered, and vesting of restricted stock, net of shares held for taxes (16,146 shares)		21				(2,252)						(2,231)
Stock-based compensation expense						8,108						8,108
Balance - June 30, 2025	$	188,454	$	173	$	3,876,831	$	1,087,967	$	(320,786)	$	4,832,639

See accompanying notes to consolidated financial statements.

-5-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

(Dollars in thousands)


		2026			2025
Operating activities:
Net income		$	283,179		$	69,610
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			14,475			123,345
Depreciation of premises and equipment			9,913			7,785
Amortization, net			14,166			13,695
Accretion related to acquisitions, net			(42,839)			(34,438)
Gain on CRE loan sale			—			(15,720)
Gain on sale of equity interest in CSP			—			(14,300)
Gain on sale of equity interest in Bearing Insurance			(32,350)			—
BOLI income			(10,934)			(10,864)
Deferred tax expense			66,339			4,059
Loans held for sale:
Originations and purchases			(204,020)			(184,784)
Proceeds from sales			198,533			2,046,402
Changes in operating assets and liabilities:
Net decrease in other assets			1,539			1,892
Net decrease in other liabilities			(20,512)			(40,725)
Net cash provided by operating activities			277,489			1,965,957
Investing activities:
Securities AFS and restricted stock:
Purchases			(363,140)			(894,303)
Proceeds from sales			209,582			629,911
Proceeds from maturities, calls and paydowns			442,815			214,160
Securities HTM:
Purchases			—			(36,640)
Proceeds from maturities, calls and paydowns			20,821			10,956
Net change in other investments			31,042			29,227
Net increase in LHFI			(832,638)			(143,446)
Net purchases of premises and equipment			(13,413)			(486)
Proceeds from BOLI settlements			1,013			2,376
Proceeds from sales of foreclosed properties and former bank premises			1,992			5,435
Net cash received in acquisition			—			270,211
Net cash (used in) provided by investing activities			(501,926)			87,401
Financing activities:
Net increase (decrease) in:
Non-interest-bearing deposits			(116,891)			(24,946)
Interest-bearing deposits			113,990			(626,472)
Short-term borrowings			380,227			(261,096)
Repayments of long-term debt			—			(200,000)
Common stock:
Repurchases			(10,005)			—
Forward sale common stock issuance			—			384,963
Dividends paid			(111,896)			(84,968)
Vesting of restricted stock, net of shares held for taxes			(7,153)			(6,265)
Net cash provided by (used in) financing activities			248,272			(818,784)
Increase in cash and cash equivalents			23,835			1,234,574
Cash, cash equivalents and restricted cash at beginning of the period			966,462			354,074
Cash, cash equivalents and restricted cash at end of the period		$	990,297		$	1,588,648

-6-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

(Dollars in thousands)


		2026			2025
Supplemental Disclosure of Cash Flow Information
Cash payments for:
Interest		$	319,688		$	311,469
Income taxes			7,730			2,719

Supplemental schedule of noncash investing and financing activities
Transfers from bank premises to other real estate owned			6,235			—
Issuance of common stock in exchange for net assets in acquisitions			—			1,275,411

Transactions related to acquisitions
Assets acquired			—			12,988,972
Liabilities assumed			—			12,209,862

See accompanying notes to consolidated financial statements.

-7-

Table of Contents

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank (the “Bank”), which provides banking and related financial products and services to consumers and businesses. Except as otherwise indicated or the context suggests otherwise, references to the “Company” refers to Atlantic Union Bankshares Corporation and its subsidiaries.

Basis of Financial Information

The accounting policies and practices of Atlantic Union Bankshares Corporation and subsidiaries conform to accounting principles generally accepted in the United States (“GAAP”) and follow general practices within the banking industry. The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Atlantic Union Bank, which owns Atlantic Union Equipment Finance, Inc., AUB Investments, Inc., and Atlantic Union Capital Markets, Inc.

The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses (“ALLL”), the fair value of financial instruments, and valuation of deferred tax assets. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other period.

Effective January 1, 2026, the Company made certain changes to its allowance methodology as part of the continued enhancement of its credit modeling practices, resulting in more dynamic and precise modeling that allows for more granularity in the monitoring of our expected credit losses. As a result of this change, the Company moved from two loan portfolio segments (Commercial and Consumer) to three portfolio segments (Commercial Real Estate (“CRE”), Commercial and Industrial, and Consumer), by reorganizing the former Commercial segment into the CRE and Commercial and Industrial segments, with no changes made to the Consumer segment. These changes were accounted for prospectively as a change in accounting estimate in the first quarter of 2026, did not have a material impact on the Company’s consolidated financial statements, and resulted in no changes to previously reported values. For more information on the updated allowance for credit losses (“ACL”) methodology after the change referenced above, see the Company’s ACL and loans held for investment (“LHFI”) accounting policies described below. For information regarding the Company’s collectively assessed prior allowance methodology, as well as the Company’s reserve for unfunded commitments (“RUC”) and the allowance for credit losses on securities policies, see Note 1 “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” of the Company’s 2025 Form 10-K.

Allowance for Credit Losses

The ACL primarily consists of the ALLL, RUC, and the allowance for credit losses on securities. The Company’s ACL is governed by the Company’s Allowance Committee, which reports to the Audit Committee and contains representatives from the Company’s finance, credit, and risk teams, and is responsible for approving the Company’s estimate of expected credit losses and resulting ACL. The Allowance Committee considers the quantitative model results and qualitative factors when approving the final ACL. The Company’s ACL model is subject to the Company’s model risk management program, which is overseen by the Operational Risk Committee that reports to the Company’s Executive Risk Committee and Board Risk Committee. The ALLL includes qualitative adjustments to capture the impact of factors or uncertainties not reflected in the quantitative model. These adjustments are comprised of relevant internal and external factors within the qualitative framework that adheres to the Interagency Policy Statement on Allowances for Credit Losses.

-8-

Table of Contents

Allowance for Loan and Lease Losses: The ALLL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Changes in the ALLL are recorded as a provision for loan losses to bring the ALLL to an estimated balance that management considers appropriate to absorb expected credit losses over the expected contractual life of the loan portfolio. Loans are charged off against the ALLL when management believes the amount is no longer collectible based on an evaluation of the borrower’s financial condition, repayment capacity, collateral values, and other observable factors affecting collectability. Subsequent recoveries of previously charged off amounts are recorded as increases to the ALLL; however, expected recoveries are not to exceed the aggregate of amounts previously charged off.

Determining the Contractual Term – Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless the extensions or renewal options are included in the original or modified contract at the reporting date and are not unconditionally legally cancelable by the Company.

The Company’s ALLL measures the expected lifetime loss using both pooled and loan-level assumptions for financial assets that share common risk characteristics and evaluates an individual reserve in instances where the financial assets do not share the same risk characteristics.

Collectively Assessed Reserve Consideration – Loans that share common risk characteristics are considered collectively assessed. Loss estimates within the collectively assessed population are based on a combination of pooled assumptions and loan-level characteristics.

Effective January 1, 2026, the Company now uses either a loan-level probability of default/loss given default methodology or a segment level loss rate model for its loan portfolio. The ALLL is estimated using quantitative methods that consider a variety of factors from both internal and external sources at the loan, portfolio, and macroeconomic environment levels. The Company’s quantitative models consider various macroeconomic variables including the unemployment rate, gross domestic product, home price index, and others for a reasonable and supportable forecast period. The ALLL quantitative estimate is sensitive to changes in the macroeconomic variable forecasts during the reasonable and supportable period.

The estimated loan losses that are forecasted using the methodology described above are then adjusted for changes in qualitative factors not inherently considered in the quantitative analysis. The qualitative factors include, among others, credit concentrations of the loan portfolio, economic uncertainty, model imprecision, and factors related to credit administration.

Because current economic conditions and forecasts can change and future events are inherently difficult to predict, the anticipated amount of estimated credit losses on loans, and therefore the appropriateness of the ALLL, could change significantly. In estimating the ALLL, the Company considers multiple forecast scenarios to address the uncertainty inherent in macroeconomic variable forecasts. It is difficult to estimate how potential changes in any one economic factor or input might affect the overall allowance because a wide variety of factors and inputs are considered in estimating the allowance and changes in those factors and inputs considered may not occur at the same rate and may not be consistent across all loan types. Additionally, changes in factors and inputs may be directionally inconsistent, such that an improvement in one factor may offset deterioration in others.

Individually Assessed Reserve Consideration – Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. The individual reserve component relates to loans that have shown substantial credit deterioration as measured by nonaccrual status, risk rating, and/or delinquency status. In addition, the Company has elected the practical expedient that would include loans for individual assessment consideration if the repayment of the loan is expected substantially through the operation or sale of collateral because the borrower is experiencing financial difficulty. Where the expected source of repayment is from the sale of collateral, the ALLL is based on the fair value of the underlying collateral, less selling costs, compared to the amortized cost basis of the loan. If the ALLL is based on the operation of the collateral, the reserve is calculated based on the fair value of the collateral calculated as the present value of expected cash flows from the operation of the collateral, compared to the amortized cost basis. If the Company determines that the value of a collateral dependent loan is less than the recorded investment in the loan, the Company charges off the deficiency if it is determined that such amount is deemed uncollectible. Typically, a loss is confirmed when the Company is moving toward foreclosure or final disposition. The ALLL on loans individually assessed is updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period.

-9-

Table of Contents

The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews include annual commercial loan reviews performed by the Company’s commercial bankers in accordance with the commercial loan policy, relationship reviews that accompany annual loan renewals, and independent reviews by its Credit Risk Review Group. Upon origination, each commercial loan is assigned an initial risk rating in accordance with the Company’s underwriting guidelines, which require newly originated loans to be rated between one and four, with ratings closer to one indicating lower credit risk. The Company’s full risk rating scale ranges from one to nine, and loans may migrate to higher risk ratings over time if their risk profile deteriorates. The risk rating scale is the Company’s primary credit quality indicator for commercial loans. Consumer loans are not risk rated unless past due status, bankruptcy, or other events result in the assignment of a Substandard or worse risk rating in accordance with the consumer loan policy. Delinquency status is the Company’s primary credit quality indicator for Consumer loans.

Refer to Note 1 “Summary of Significant Accounting Policies” in the “Notes to the Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” in the Company’s 2025 Form 10-K for additional information on the Company’s policies and for further information on the Company’s credit quality indicators.

Loans Held for Investment

Prior to January 1, 2026, the Company applied ALLL methodologies to two portfolio segments: Commercial and Consumer. As disclosed above, effective January 1, 2026, the Company made certain changes to its allowance methodology as part of the continued enhancement of its credit modeling practices, resulting in more dynamic and precise modeling that allows for more granularity in the monitoring of the Company’s expected credit losses. As a result of this change, the Company moved from two loan portfolio segments (Commercial and Consumer) to three portfolio segments (CRE, Commercial and Industrial, and Consumer), by reorganizing the former Commercial segment into the CRE and Commercial and Industrial segments, with no changes made to the Consumer segment. The Company defines the three loan portfolio segments as follows:

CRE:

●

CRE – Non-Owner Occupied - Term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various property types, such as retail, office, office warehouse, and hotel, as well as avoiding concentrations to any one business, industry, property type, or market.

●

CRE – Owner Occupied - Term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry.

●

Construction and Land Development - Construction loans generally made to commercial and residential developers and builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company or other lender, or (b) from the sale of the constructed property. These loans carry more risk than both types of CRE term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in CRE term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business, industry, property type, or market.

Also included in this category are loans generally made to residential home builders to support their lot and home construction inventory needs. Repayment relies upon the sale of the underlying residential real estate project. This type of lending is generally viewed as carrying a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning primary and secondary market in which to finance the sale of residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations with any particular customer or geographic region.

-10-

Table of Contents

●

Multifamily Real Estate - Loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This operation mainly involves property maintenance, re-leasing upon tenant turnover and collection of rents due from tenants. The Company manages this risk by avoiding concentrations with any particular customer and if necessary, in any particular submarket.

●

Residential 1-4 Family – Commercial - Loans made to commercial borrowers where the loan is secured by residential property. The Residential 1-4 Family - Commercial loan portfolio carries risks associated with the creditworthiness of the tenant, the ability to re-lease the property when vacancies occur, and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, requiring guarantees, experienced underwriting, and requiring standards for appraisers.

●

Other Commercial (Farmland) - Portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks by using general underwriting policies and procedures for these types of loans and experienced underwriting. Loans secured by farmland are included in this category.

Commercial and Industrial:

●

Commercial & Industrial - Loans generally made to support borrowers’ needs for short-term or seasonal cash flow and equipment/vehicle purchases. Repayment relies upon the successful operation of the business. This type of lending typically carries a lower level of commercial credit risk as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry.

●

Other Commercial (Other) - Portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks by using general underwriting policies and procedures for these types of loans and experienced underwriting. Loans that support small business lines of credit and agricultural lending are included in this category.

Consumer:

●

Auto - The consumer indirect auto lending portfolio carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two-year-old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards.

●

Consumer - Loans to consumer borrowers for various personal and household purposes as well as loans purchased through various third-party lending programs. These portfolios carry risks associated with the borrower, changes in the economic environment, and the vendors themselves. The Company manages these risks through policies that require minimum credit scores and other underwriting requirements, robust analysis of actual performance versus expected performance, as well as ensuring compliance with the Company’s vendor management program.

●

Residential 1-4 Family – Consumer - Loans generally made to consumer residential borrowers. The Residential 1-4 Family - Consumer loan portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans.

●

Residential 1-4 Family – Revolving - The consumer portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, using experienced underwriting, requiring standards for appraisers, and not making subprime loans.

The allowance methodology changes were accounted for prospectively as a change in accounting estimate in the first quarter of 2026, did not have a material impact on the Company’s consolidated financial statements, and resulted in no changes to

-11-

Table of Contents

previously reported values. See “Critical Accounting Estimates” in Part I, Item 2 of this Quarterly Report for additional information on the change in methodology.

Adoption of New Accounting Standards – In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2025-10 Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This update established authoritative guidance on the accounting for government grants received by business entities. The amendments are effective for fiscal years beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company early adopted ASU 2025-10 effective January 1, 2026, on a modified prospective basis. ASU 2025-10 did not have a material impact on the Company’s consolidated financial statements.

-12-

Table of Contents

2. ACQUISITIONS

Sandy Spring Bancorp, Inc. Acquisition

On April 1, 2025, the Company completed its previously announced acquisition of Sandy Spring, the holding company for Sandy Spring Bank, headquartered in Olney, Maryland. Under the terms of the Sandy Spring merger agreement, at the effective time of the Sandy Spring acquisition, each outstanding share of Sandy Spring common stock was converted into the right to receive 0.900 shares of the Company’s common stock, with cash paid in lieu of fractional shares, resulting in 41.0 million additional shares issued, or an aggregate transaction value of approximately $1.3 billion, based on the closing price per share of the Company’s common stock as quoted on the New York Stock Exchange (“NYSE”) on March 31, 2025, which was the last trading day prior to the consummation of the acquisition. With the acquisition of Sandy Spring, the Company acquired more than 50 branches in Virginia, Maryland, and Washington, D.C., enhancing the Company’s presence in Northern Virginia and Maryland.

Goodwill associated with the Sandy Spring acquisition totaled $540.8 million at March 31, 2026, allocated between the Company’s Wholesale Banking ($431.7 million) and Consumer Banking ($109.1 million) reporting segments, which is not deductible for tax purposes. As of March 31, 2026, the purchase accounting was finalized and no longer subject to change.

The following table provides a summary of the consideration transferred and the fair value of the assets acquired and liabilities assumed as of the date of the Sandy Spring acquisition (dollars in thousands).


Purchase price consideration			$	1,275,969

Fair value of assets acquired:
Cash and cash equivalents	$	270,211
Securities available for sale ("AFS")		1,266,925
Restricted stock		68,310
Loans held for sale ("LHFS") - CRE		1,839,638
LHFS - Non-CRE		29,152
LHFI		8,572,384
Premises and equipment		59,402
Core deposit intangible ("CDI") and other intangibles		290,650
Bank owned life insurance ("BOLI")		170,482
Lease right of use ("ROU") assets		40,808
Other assets ⁽¹⁾		337,509
Total assets	$	12,945,471

Fair value of liabilities assumed:
Deposits	$	11,227,922
Short-term borrowings		272,201
Long-term borrowings		560,761
Lease liabilities		40,808
Other liabilities		108,631
Total liabilities	$	12,210,323

Fair value of net assets acquired			$	735,148
Goodwill			$	540,821

⁽¹⁾ Other assets include deferred tax assets, accrued interest receivable, accounts receivable, and other intangibles, as well as other miscellaneous assets acquired from Sandy Spring.

-13-

Table of Contents

The Company assessed the fair value for significant assets acquired and liabilities assumed based on the following methods:

●

Cash and cash equivalents: The fair value was determined to approximate the carrying amount based on the short-term nature of these assets.

●

Securities AFS: The fair value of the investment portfolio was based on pricing obtained by independent pricing services and quoted market prices.

●

Restricted stock: The carrying value approximates the fair value.

●

LHFS CRE and non-CRE: Fair values were estimated using a discounted cash flow analysis that considered factors including loan type, interest rate type, prepayment speeds, duration, and current discount rates.

●

LHFI: Fair values for LHFI were estimated using a discounted cash flow analysis that considered factors including loan type, interest rate type, prepayment speeds, duration, and current discount rates. The discount rates were developed considering market participants’ view of loan types, liquidity risk, the maturity of the loans, service costs and a required return of capital. Expected cash flows were derived using inputs that considered estimated credit losses and prepayments.

●

Premises and equipment: The fair value of bank premises and equipment held for use was valued by obtaining recent market data for similar property types with adjustments for characteristics of individual properties.

●

CDI and other intangibles: CDI represents the future economic benefit of acquired customer deposits. The fair value of the CDI asset was estimated based on a discounted cash flow methodology that incorporated expected customer attrition rates, cost of deposit base, net maintenance cost associated with customer deposits, and the cost for alternative funding sources. The discount rates used were based on market rates. Other intangibles include customer relationship intangible assets and non-compete intangible assets. Customer relationship intangible assets represent the value associated with customer relationships related to the wealth management business that was acquired. Non-compete intangible assets represent the value associated with non-compete agreements for former employees in place at the date of the acquisition.

●

BOLI: The fair value of BOLI is carried at its current cash surrender value, which is the most reasonable estimate of fair value.

●

Lease ROU assets and lease liabilities: The fair value of the lease ROU assets was measured at an amount equal to the lease liability and evaluated for favorable or unfavorable lease terms when compared with market terms on a lease-by-lease basis.

●

Deposits: The fair value of interest-bearing and non-interest-bearing deposits is the amount payable on demand at the acquisition date. The fair value of time deposits was estimated using a discounted cash flow calculation that includes a market rate analysis of the current rates offered by market participants for certificates of deposits that mature in the same period.

●

Short-Term Borrowings: Acquired short term borrowings consisted of Federal Home Loan Bank (“FHLB”) overnight borrowings and borrowings under repurchase agreements. The carrying amount on short-term borrowings was determined to approximate fair value.

●

Long-Term Borrowings: The fair values of long-term borrowings, including trust preferred securities and subordinated debt, were estimated using a discounted cash flow approach analysis, factoring in market terms and the structural terms of the borrowings.

-14-

Table of Contents

Unaudited Pro forma Impact of the Acquisition

The following table presents for illustrative purposes certain unaudited pro forma information as if the Company had acquired Sandy Spring on January 1, 2025. These results combine the historical results of Sandy Spring in the Company's Consolidated Statements of Income and while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity. These results are not indicative of what would have occurred had the Sandy Spring acquisition taken place on January 1, 2025. No adjustments have been made to the pro forma results regarding possible revenue enhancements, provision for credit losses, or expense efficiencies. Pro forma adjustments below include the net impact of Sandy Spring’s accretion and the elimination of merger-related costs. Merger-related costs as disclosed in the Company’s Consolidated Statement of Income were related to the Sandy Spring acquisition and included costs associated with employee severance, other employee related costs, professional fees, information technology related costs, including system conversion, and lease and contract termination expenses. Merger-related costs have been expensed as incurred. The Company expects to achieve further operating cost savings and other business synergies, as a result of the Sandy Spring acquisitions, which are not reflected in the pro forma amounts below (dollars in thousands):


			Pro forma
			Three Months Ended
			March 31,
		2025 ⁽²⁾
		(unaudited)
Total revenues ⁽¹⁾		$	360,315
Net income available to common shareholders ⁽³⁾		$	70,582

⁽¹⁾ Includes net interest income and noninterest income.

⁽²⁾ Includes the net impact of Sandy Spring’s acquisition-related accretion adjustments of $21.0 million during the three months ended March 31, 2025.

⁽³⁾ Excludes merger-related costs of $4.6 million incurred during the three months ended March 31, 2025.

The Company’s operating results for the three and six months ended June 30, 2026 and June 30, 2025, include the operating results of the acquired assets and assumed liabilities of Sandy Spring subsequent to the acquisition on April 1, 2025. Revenues and earnings since the acquisition date of the former operations of Sandy Spring have not been disclosed due to the merging of certain processes and the conversion of Sandy Spring’s systems that occurred in the fourth quarter of 2025. As a result, separate financial information is not readily available.

-15-

Table of Contents

3. SECURITIES AND OTHER INVESTMENTS

Available for Sale

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of June 30, 2026 are as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

 

Cost

 

Gains

 

(Losses)

 

Fair Value

U.S. government and agency securities

101,072

192

(152)

101,112

Obligations of states and political subdivisions

591,738

(100,555)

491,271

Corporate and other bonds ⁽¹⁾

196,797

537

(2,750)

194,584

Commercial MBS

Agency

334,878

508

(40,131)

295,255

Non-agency

128,202

(3,130)

125,151

Total commercial MBS

463,080

587

(43,261)

420,406

Residential MBS

Agency

2,711,777

4,651

(174,198)

2,542,230

Non-agency

127,359

682

(2,927)

125,114

Total residential MBS

2,839,136

5,333

(177,125)

2,667,344

Other securities

2,000

—

2,000

Total AFS securities

4,193,823

6,737

(323,843)

3,876,717

⁽¹⁾ Other bonds include asset-backed securities.

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of December 31, 2025 are as follows (dollars in thousands):


		Amortized			Gross Unrealized						Estimated
		Cost			Gains			(Losses)			Fair Value
U.S. government and agency securities		$	103,335		$	681		$	(14)		$	104,002
Obligations of states and political subdivisions			589,194			178			(101,487)			487,885
Corporate and other bonds ⁽¹⁾			221,432			709			(4,207)			217,934
Commercial MBS
Agency			354,405			1,276			(39,806)			315,875
Non-agency			115,009			187			(1,905)			113,291
Total commercial MBS			469,414			1,463			(41,711)			429,166
Residential MBS
Agency			2,942,900			15,838			(165,524)			2,793,214
Non-agency			161,767			935			(2,558)			160,144
Total residential MBS			3,104,667			16,773			(168,082)			2,953,358
Other securities			1,956			—			—			1,956
Total AFS securities		$	4,489,998		$	19,804		$	(315,501)		$	4,194,301

⁽¹⁾ Other bonds include asset-backed securities.

-16-

Table of Contents

The following table shows the gross unrealized losses and fair value of the Company’s AFS securities with unrealized losses, which are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position for the following periods ended (dollars in thousands).


	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value ⁽²⁾		Losses		Value		Losses
June 30, 2026
U.S. government and agency securities	$	33,795	$	(139)	$	893	$	(13)	$	34,688	$	(152)
Obligations of states and political subdivisions		7,827		(403)		466,964		(100,152)		474,791		(100,555)
Corporate and other bonds ⁽¹⁾		31,720		(122)		89,745		(2,628)		121,465		(2,750)
Commercial MBS
Agency		73,165		(572)		144,318		(39,559)		217,483		(40,131)
Non-agency		69,811		(926)		33,846		(2,204)		103,657		(3,130)
Total commercial MBS		142,976		(1,498)		178,164		(41,763)		321,140		(43,261)
Residential MBS
Agency		993,857		(8,046)		817,802		(166,152)		1,811,659		(174,198)
Non-agency		67,344		(717)		22,420		(2,210)		89,764		(2,927)
Total residential MBS		1,061,201		(8,763)		840,222		(168,362)		1,901,423		(177,125)
Total AFS securities	$	1,277,519	$	(10,925)	$	1,575,988	$	(312,918)	$	2,853,507	$	(323,843)

December 31, 2025
U.S. government and agency securities	$	6,689	$	(6)	$	737	$	(8)	$	7,426	$	(14)
Obligations of states and political subdivisions		25		—		473,201		(101,487)		473,226		(101,487)
Corporate and other bonds ⁽¹⁾		37,988		(75)		98,125		(4,132)		136,113		(4,207)
Commercial MBS
Agency		44,536		(166)		161,001		(39,640)		205,537		(39,806)
Non-agency		39,171		(177)		22,429		(1,728)		61,600		(1,905)
Total commercial MBS		83,707		(343)		183,430		(41,368)		267,137		(41,711)
Residential MBS
Agency		359,095		(1,564)		886,626		(163,960)		1,245,721		(165,524)
Non-agency		48,559		(247)		24,868		(2,311)		73,427		(2,558)
Total residential MBS		407,654		(1,811)		911,494		(166,271)		1,319,148		(168,082)
Total AFS securities	$	536,063	$	(2,235)	$	1,666,987	$	(313,266)	$	2,203,050	$	(315,501)

⁽¹⁾ Other bonds include asset-backed securities.

⁽²⁾ Comprised of 696 and 703 individual securities as of June 30, 2026 and December 31, 2025, respectively.

The Company has evaluated AFS securities in an unrealized loss position for credit related impairment at June 30, 2026 and December 31, 2025 and concluded no impairment existed based on several factors which included: (1) the majority of these securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the cost basis of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis.

Additionally, the majority of the Company’s mortgage-backed securities (“MBS”) are issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association, and have minimal credit risk given the implicit and explicit government guarantees associated with these agencies. In addition, the non-agency mortgage-backed and asset-backed securities generally received a 20% simplified supervisory formula approach rating. The Company’s AFS investment portfolio is generally highly-rated or agency backed. At June 30, 2026 and December 31, 2025, all AFS securities were current with no securities past due or on non-accrual, and no ACL was held against the Company’s AFS securities portfolio.

-17-

Table of Contents

The following table presents the amortized cost and estimated fair value of AFS securities as of the periods ended, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2026

December 31, 2025

 

Amortized

 

Estimated

 

Amortized

 

Estimated

Cost

Fair Value

Cost

Fair Value

Due in one year or less

96,625

96,790

63,692

63,993

Due after one year through five years

285,478

284,536

298,683

299,727

Due after five years through ten years

432,431

410,204

492,242

475,707

Due after ten years

3,379,289

3,085,187

3,635,381

3,354,874

Total AFS securities

4,193,823

3,876,717

4,489,998

4,194,301

Refer to Note 7 “Commitments and Contingencies” within this Item 1 of this Quarterly Report for information regarding the estimated fair value of AFS securities that were pledged to secure public deposits, repurchase agreements and for other purposes as permitted or required by law as of June 30, 2026 and December 31, 2025.

Accrued interest receivable on AFS securities totaled $14.1 million and $15.0 million at June 30, 2026 and December 31, 2025, respectively, and is included in “Other assets” on the Company’s Consolidated Balance Sheets. For the three and six months ended June 30, 2026 and June 30, 2025, there were no accrued interest receivable write-offs.

Held to Maturity

The Company reports held to maturity (“HTM”) securities on the Company’s Consolidated Balance Sheets at carrying value, which represents amortized cost. The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of June 30, 2026 are as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

 

Value

 

Gains

 

(Losses)

Fair Value

Obligations of states and political subdivisions

774,441

3,541

(21,677)

756,305

Corporate and other bonds ⁽¹⁾

1,710

—

(29)

1,681

Commercial MBS

Agency

28,829

—

(5,755)

23,074

Non-agency

10,409

(491)

9,979

Total commercial MBS

39,238

(6,246)

33,053

Residential MBS

Agency

34,301

—

(4,604)

29,697

Non-agency

11,216

—

(188)

11,028

Total residential MBS

45,517

—

(4,792)

40,725

Total HTM securities

860,906

3,602

(32,744)

831,764

⁽¹⁾ Other bonds include asset-backed securities.

-18-

Table of Contents

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of December 31, 2025 are as follows (dollars in thousands):


		Carrying			Gross Unrealized						Estimated
		Value			Gains			(Losses)			Fair Value
Obligations of states and political subdivisions		$	793,162		$	4,139		$	(20,951)		$	776,350
Corporate and other bonds ⁽¹⁾			2,255			—			(26)			2,229
Commercial MBS
Agency			29,074			—			(5,619)			23,455
Non-agency			11,703			103			(504)			11,302
Total commercial MBS			40,777			103			(6,123)			34,757
Residential MBS
Agency			35,793			—			(4,397)			31,396
Non-agency			12,229			—			(149)			12,080
Total residential MBS			48,022			—			(4,546)			43,476
Total HTM securities		$	884,216		$	4,242		$	(31,646)		$	856,812

⁽¹⁾ Other bonds include asset-backed securities.

The following table presents the amortized cost of HTM securities as of the periods ended, by security type and credit rating (dollars in thousands):


		Obligations of states and political			Corporate and other			Mortgage-backed			Total HTM
		subdivisions			bonds			securities			securities
June 30, 2026
Credit Rating:
AAA/AA/A		$	763,759		$	—		$	1,573		$	765,332
BBB/BB/B			1,110			—			—			1,110
Not Rated – Agency ⁽¹⁾			—			—			63,130			63,130
Not Rated – Non-Agency ⁽²⁾			9,572			1,710			20,052			31,334
Total		$	774,441		$	1,710		$	84,755		$	860,906
December 31, 2025
Credit Rating:
AAA/AA/A		$	782,453		$	—		$	1,702		$	784,155
BBB/BB/B			1,122			—			—			1,122
Not Rated – Agency ⁽¹⁾			—			—			64,867			64,867
Not Rated – Non-Agency ⁽²⁾			9,587			2,255			22,230			34,072
Total		$	793,162		$	2,255		$	88,799		$	884,216

⁽¹⁾ Generally considered not to have credit risk given the government guarantees associated with these agencies.

⁽²⁾ Non-agency mortgage-backed and asset-backed securities have limited credit risk, supported by most receiving a 20% simplified supervisory formula approach rating.

-19-

Table of Contents

The following table presents the amortized cost and estimated fair value of HTM securities as of the periods ended by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2026

December 31, 2025

 

Carrying

 

Estimated

 

Carrying

 

Estimated

Value

Fair Value

Value

Fair Value

Due in one year or less

10,793

10,828

507

503

Due after one year through five years

25,892

26,307

18,813

19,150

Due after five years through ten years

256,544

248,372

222,284

216,095

Due after ten years

567,677

546,257

642,612

621,064

Total HTM securities

860,906

831,764

884,216

856,812

Refer to Note 7 “Commitments and Contingencies” within this Item 1 of this Quarterly Report for information regarding the estimated fair value of HTM securities that were pledged to secure public deposits as permitted or required by law as of June 30, 2026 and December 31, 2025.

Accrued interest receivable on HTM securities totaled $9.7 million and $9.9 million at June 30, 2026 and December 31, 2025, respectively, and is included in “Other assets” on the Company’s Consolidated Balance Sheets. For the three and six months ended June 30, 2026 and June 30, 2025, there were no accrued interest receivable write-offs. The Company’s HTM investment portfolio primarily consists of highly-rated municipal securities and agency MBS. At June 30, 2026 and December 31, 2025, the Company’s HTM securities were all current, with no securities past due or on non-accrual. The Company’s HTM securities ACL was immaterial at June 30, 2026 and December 31, 2025.

Restricted Stock, at cost

The FHLB required the Bank to maintain stock in an amount equal to 4.75% of outstanding borrowings and a specific percentage of the member’s total assets at June 30, 2026 and December 31, 2025. The Federal Reserve Bank of Richmond (“FRB”) requires the Company to maintain stock with a par value equal to 6% of its outstanding capital at June 30, 2026 and December 31, 2025. At June 30, 2026 and December 31, 2025, restricted stock consisted of FRB stock in the amount of $141.2 million and FHLB stock in the amount of $63.1 million and $49.0 million, respectively.

Realized Gains and Losses

The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three and six months ended June 30, (dollars in thousands):


		Three Months Ended			Six Months Ended
		2026			2026
Realized gains⁽¹⁾:
Gross realized gains		$	4		$	6
Net realized gains		$	4		$	6
Proceeds from sales of securities		$	129,442		$	209,582


		Three Months Ended			Six Months Ended
		2025			2025
Realized gains (losses) ⁽¹⁾:
Gross realized gains		$	16		$	30
Gross realized losses			—			(117)
Net realized gains (losses)		$	16		$	(87)
Proceeds from sales of securities		$	588,546		$	629,911

⁽¹⁾ Includes gains (losses) on sales and calls of securities.

-20-

Table of Contents

4. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES

Loans Held for Investment

The Company’s LHFI, net, are loans stated at their amortized cost, net of the ALLL and net of unearned income. The LHFI consisted of the following as of the periods ended (dollars in thousands):


	June 30, 2026		December 31, 2025
Construction and Land Development	$	1,859,217	$	1,666,381
CRE – Owner Occupied		4,308,292		4,305,796
CRE – Non-Owner Occupied		7,303,555		7,178,515
Multifamily Real Estate		2,429,355		2,418,250
Commercial & Industrial		5,628,880		5,229,728
Residential 1-4 Family – Commercial		1,008,438		1,100,157
Residential 1-4 Family – Consumer		2,930,665		2,825,259
Residential 1-4 Family – Revolving		1,312,531		1,248,284
Auto		131,477		183,720
Consumer		110,909		121,488
Other Commercial		1,649,952		1,518,589
Total LHFI, net of unearned income ⁽¹⁾		28,673,271		27,796,167
Allowance for loan and lease losses		(298,756)		(295,108)
Total LHFI, net	$	28,374,515	$	27,501,059

⁽¹⁾Total LHFI, net of unearned income included unamortized deferred fees and costs, as well as unamortized premiums and discounts totaling $721.0 million and $803.2 million as of June 30, 2026 and December 31, 2025, respectively.

Accrued interest receivable on LHFI totaled $103.1 million and $106.5 million at June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable write-offs were not material to the Company’s consolidated financial statements for the three and six months ended June 30, 2026 and June 30, 2025.

-21-

Table of Contents

The following table shows the aging of the Company’s LHFI portfolio by class at June 30, 2026 (dollars in thousands):

 

Greater than

 

30-59 Days

 

60-89 Days

 

90 Days and

 

Current

Past Due

 

Past Due

 

still Accruing

 

Nonaccrual

 

Total Loans

Construction and Land Development

1,851,642

593

 

2,210

 

331

 

4,441

 

1,859,217

CRE – Owner Occupied

4,281,911

9,636

 

2,112

 

7,503

 

7,130

 

4,308,292

CRE – Non-Owner Occupied

7,282,135

474

 

871

 

7,597

 

12,478

 

7,303,555

Multifamily Real Estate

2,400,358

1,325

 

732

 

3,541

 

23,399

 

2,429,355

Commercial & Industrial

5,590,865

2,512

 

1,830

 

2,250

 

31,423

 

5,628,880

Residential 1-4 Family – Commercial

1,002,710

2,140

 

1,111

 

362

 

2,115

 

1,008,438

Residential 1-4 Family – Consumer

2,892,052

1,557

 

6,985

 

5,954

 

24,117

 

2,930,665

Residential 1-4 Family – Revolving

1,297,200

4,297

1,732

 

4,319

 

4,983

 

1,312,531

Auto

128,566

1,853

465

219

 

374

 

131,477

Consumer

110,230

310

320

110,909

Other Commercial

1,644,319

2,516

1,051

1,616

450

1,649,952

Total LHFI, net of unearned income

28,481,988

27,213

19,419

33,725

110,926

28,673,271

% of total loans

99.33

0.09

0.07

0.12

0.39

100.00

The following table shows the aging of the Company’s LHFI portfolio by class at December 31, 2025 (dollars in thousands):


											Greater than
					30-59 Days			60-89 Days			90 Days and
		Current			Past Due			Past Due			still Accruing			Nonaccrual			Total Loans
Construction and Land Development		$	1,659,048		$	1,455		$	94		$	1,481		$	4,303		$	1,666,381
CRE – Owner Occupied			4,284,562			7,241			3,171			4,788			6,034			4,305,796
CRE – Non-Owner Occupied			7,154,178			9,482			1,455			2,099			11,301			7,178,515
Multifamily Real Estate			2,366,442			52			247			6,140			45,369			2,418,250
Commercial & Industrial			5,197,839			8,935			3,552			9,114			10,288			5,229,728
Residential 1-4 Family – Commercial			1,087,181			2,634			1,306			2,379			6,657			1,100,157
Residential 1-4 Family – Consumer			2,772,790			17,911			5,628			5,633			23,297			2,825,259
Residential 1-4 Family – Revolving			1,233,032			3,994			2,157			3,458			5,643			1,248,284
Auto			178,615			3,332			797			404			572			183,720
Consumer			120,806			444			171			55			12			121,488
Other Commercial			1,513,629			3,242			143			—			1,575			1,518,589
Total LHFI, net of unearned income		$	27,568,122		$	58,722		$	18,721		$	35,551		$	115,051		$	27,796,167
% of total loans			99.18	%		0.21	%		0.07	%		0.13	%		0.41	%		100.00	%

The following table shows the Company’s amortized cost basis of loans on nonaccrual status with no related ALLL as of the periods ended (dollars in thousands):


	June 30,		December 31,
	2026		2025
Construction and Land Development	$	—	$	2,700
CRE – Owner Occupied		3,313		1,430
CRE – Non-Owner Occupied		10,022		10,097
Multifamily Real Estate		22,720		45,369
Commercial & Industrial		17,659		2,751
Residential 1-4 Family – Commercial		224		4,597
Residential 1-4 Family – Consumer		1,070		1,122
Total LHFI, net of unearned income	$	55,008	$	68,066

There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2026 and June 30, 2025.

-22-

Table of Contents

Troubled Loan Modifications (“TLMs”)

The following tables present the amortized cost basis of TLMs for the three and six months ended June 30, (dollars in thousands):


		Three Months Ended				Six Months Ended
		2026				2026
		Amortized Cost		% of Total Class of Financing Receivable		Amortized Cost		% of Total Class of Financing Receivable
Other-Than-Insignificant Payment Delay
Commercial and Industrial		$	1,840	0.03	%	$	1,840	0.03	%
Total Other-Than-Insignificant Payment Delay		$	1,840			$	1,840

Term Extension
Construction and Land Development		$	—	—	%	$	8	NM	%
Commercial and Industrial			240	NM	%		240	NM	%
CRE – Non-Owner Occupied			5,551	0.08	%		5,551	0.08	%
Residential 1-4 Family – Consumer			192	0.01	%		422	0.01	%
Total Term Extension		$	5,983			$	6,221

Interest Rate Reduction
Commercial and Industrial		$	338	0.01	%	$	338	0.01	%
Total Interest Rate Reduction		$	338			$	338

Combination – Other-Than-Insignificant Payment Delay and Term Extension
CRE – Non-Owner Occupied		$	—	—	%	$	16,003	0.22	%
Total Combination – Other-Than-Insignificant Payment Delay and Term Extension		$	—			$	16,003

Combination – Term Extension and Interest Rate Reduction
Commercial and Industrial		$	409	0.01	%	$	409	0.01	%
Residential 1-4 Family – Consumer			263	0.01	%		717	0.02	%
Residential 1-4 Family – Revolving			78	0.01	%		78	0.01	%
Total Combination – Term Extension and Interest Rate Reduction		$	750			$	1,204

Total		$	8,911			$	25,606

NM = Not Meaningful

-23-

Table of Contents


		Three Months Ended				Six Months Ended
		2025				2025
		Amortized Cost		% of Total Class of Financing Receivable		Amortized Cost		% of Total Class of Financing Receivable
Other-Than-Insignificant Payment Delay
Commercial and Industrial		$	7,584	0.15	%	$	7,584	0.15	%
CRE – Non-Owner Occupied			3,780	0.05	%		3,780	0.05	%
Other-Than-Insignificant Payment Delay		$	11,364			$	11,364

Term Extension
CRE – Owner Occupied		$	1,244	0.03	%	$	1,546	0.04	%
Residential 1-4 Family – Commercial			4,586	0.41	%		4,918	0.43	%
Residential 1-4 Family – Consumer			196	0.01	%		395	0.01	%
Total Term Extension		$	6,026			$	6,859

Combination – Other-Than-Insignificant Payment Delay and Term Extension
Commercial and Industrial		$	—	—	%	$	478	0.01	%
Total Combination – Other-Than-Insignificant Payment Delay and Term Extension		$	—			$	478

Combination – Term Extension and Interest Rate Reduction
Residential 1-4 Family – Consumer		$	701	0.03	%	$	1,531	0.06	%
Total Combination – Term Extension and Interest Rate Reduction		$	701			$	1,531

Total		$	18,091			$	20,232

-24-

Table of Contents

The following tables describe the financial effects of TLMs on a weighted average basis for TLMs within that loan type for the three and six months ended June 30,:


Three Months Ended
2026

Term Extension
Loan Type				Financial Effect
CRE – Non-Owner Occupied				Added a weighted-average 0.5 years to the life of loans.

Six Months Ended
2026

Term Extension
Loan Type				Financial Effect
CRE – Non-Owner Occupied				Added a weighted-average 0.5 years to the life of loans.


Combination – Other-Than-Insignificant Payment Delay and Term Extension
Loan Type				Financial Effect
CRE – Non-Owner Occupied				Added a weighted-average 1.1 years to the life of loans.


Three Months Ended
2025

Term Extension
Loan Type				Financial Effect
CRE – Owner Occupied				Added a weighted-average 0.5 years to the life of loans.
Residential 1-4 Family – Commercial				Added a weighted-average 0.8 years to the life of loans.

Six Months Ended
2025

Term Extension
Loan Type				Financial Effect
CRE – Owner Occupied				Added a weighted-average 0.5 years to the life of loans.
Residential 1-4 Family – Commercial				Added a weighted-average 0.8 years to the life of loans.

Combination – Term Extension and Interest Rate Reduction
Loan Type				Financial Effect
Residential 1-4 Family – Consumer				Added a weighted-average 1.6 years to the life of loans and reduced the weighted average contractual interest rate from 5.0% to 2.1%.

The Company considers a default of a TLM to occur when the borrower is 90 days past due following the modification or a foreclosure and repossession of the applicable collateral occurs. During the three and six months ended June 30, 2026 and June 30, 2025, the Company did not have any material loans that went into default that had been modified and designated as TLMs in the twelve-month period prior to the time of default.

The Company monitors the performance of TLMs to determine the effectiveness of the modifications. During the three and six months ended June 30, 2026 and June 30, 2025, the Company did not have any material loans that had been modified and designated as TLMs that were past due.

As of June 30, 2026 and December 31, 2025, there were no material unfunded commitments on loans modified and designated as TLMs.

-25-

Table of Contents

Allowance for Credit Losses

The following table shows the ALLL activity by loan segment for the three and six months ended June 30, reflecting the changes made to the Company’s allowance methodology effective January 1, 2026 (dollars in thousands). See Note 1 “Summary of Significant Accounting Policies” in Part I, Item 1 of this Quarterly Report for additional information on the change in methodology:

Three Months Ended

Six Months Ended

2026

CRE

Commercial and Industrial

Consumer

Total

CRE

Commercial and Industrial

Consumer

Total

Balance at beginning of period

171,900

58,697

60,503

291,100

152,477

80,336

62,295

295,108

Loans charged-off ⁽¹⁾

(908)

(1,650)

(755)

(3,313)

(908)

(3,848)

(1,458)

(6,214)

Recoveries credited to allowance

344

534

449

1,327

711

1,075

848

2,634

Provision (release) charged to operations

2,425

2,911

4,306

9,642

21,481

(17,071)

2,818

7,228

Balance at end of period

173,761

60,492

64,503

298,756

173,761

60,492

64,503

298,756

⁽¹⁾In accordance with GAAP, amounts for the six months ended June 30, 2026, excluded $39.5 million of net charge-offs related to certain purchased credit deteriorated (“PCD”) loans that met the Company’s charge-off policy at the time of the acquisition. The amounts excluded for the six months ended June 30, 2026, reflect measurement period adjustments recorded in the first quarter of 2026 related to the Sandy Spring acquisition based on additional information and evidence obtained by the Company relating to events or circumstances existing at the acquisition date. As of March 31, 2026, the purchase accounting was finalized and no longer subject to change.

-26-

Table of Contents

The following table shows the ALLL activity by loan segment for the three and six months ended June 30, reflecting the Company’s previous allowance methodology. See Note 1 “Summary of Significant Accounting Policies” in Part I, Item 1 of this Quarterly Report for additional information (dollars in thousands):


	Three Months Ended						Six Months Ended
	2025						2025
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	162,908	$	30,888	$	193,796	$	148,887	$	29,757	$	178,644
Initial allowance - PCD loans⁽¹⁾		21,255		7,010		28,265		21,255		7,010		28,265
Loans charged-off ⁽¹⁾		(1,534)		(1,045)		(2,579)		(3,382)		(2,082)		(5,464)
Recoveries credited to allowance		1,545		368		1,913		1,775		745		2,520
Initial provision - non-PCD loans		64,740		24,798		89,538		64,740		24,798		89,538
Provision (release) charged to operations		8,489		(3,848)		4,641		24,128		(2,057)		22,071
Balance at end of period	$	257,403	$	58,171	$	315,574	$	257,403	$	58,171	$	315,574

⁽¹⁾In accordance with GAAP, amounts for the three and six months ended June 30, 2025, excluded $34.5 million of net charge-offs related to certain PCD loans that met the Company’s charge-off policy at the time of the acquisition. The amounts excluded for the three and six months ended June 30, 2025, reflect measurement period adjustments recorded in the second quarter of 2025 related to the Sandy Spring acquisition based on additional information and evidence obtained by the Company relating to events or circumstances existing at the acquisition date.

Credit Quality Indicators

Credit quality indicators are used to help estimate the collectability of each loan class within the loan portfolio segments. For classes of loans within the CRE and Commercial and Industrial segments, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is risk rating categories of Pass (including Pass-Watch), Special Mention, Substandard, and Doubtful. For classes of loans within the Consumer segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is delinquency bands of current, 30-59, 60-89, 90+, and nonaccrual. While other credit quality indicators are evaluated and analyzed as part of the Company’s credit risk management activities, these indicators are primarily used in estimating the ALLL. The Company evaluates the credit risk of its loan portfolio on at least a quarterly basis.

CRE and Commercial and Industrial Loans

The Company uses a risk rating system as the primary credit quality indicator for classes of loans within the CRE and Commercial and Industrial segments. The Company defines pass loans as risk rated 1-5 and criticized loans as risk rated 6-9. See Note 4 “Loans and Allowance For Loan and Lease Losses” in the “Notes to the Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” of the Company’s 2025 Form 10-K for information on the Company’s risk rating system.

-27-

Table of Contents

The table below details the amortized cost and gross write-offs of the classes of loans within the CRE segment by risk level and year of origination as of June 30, reflecting the changes made to the Company’s allowance methodology effective January 1, 2026 (dollars in thousands):


		2026
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2026		2025		2024		2023		2022		Prior		Loans		Total
Construction and Land Development
Pass	$	255,246	$	561,920	$	326,600	$	247,635	$	79,482	$	87,927	$	222,156	$	1,780,966
Watch		405		—		2,497		13,724		4,438		2,083		12,775		35,922
Special Mention		—		307		—		927		—		4,045		26,239		31,518
Substandard		—		1,152		2,432		1,325		598		5,304		—		10,811
Total Construction and Land Development	$	255,651	$	563,379	$	331,529	$	263,611	$	84,518	$	99,359	$	261,170	$	1,859,217
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

CRE – Owner Occupied
Pass	$	247,990	$	418,944	$	275,978	$	288,096	$	475,101	$	2,156,954	$	48,255	$	3,911,318
Watch		966		8,688		17,334		29,851		22,732		102,922		1,178		183,671
Special Mention		—		6,833		2,254		11,483		8,696		76,965		3,724		109,955
Substandard		—		—		23,465		15,536		7,347		56,610		390		103,348
Total CRE – Owner Occupied	$	248,956	$	434,465	$	319,031	$	344,966	$	513,876	$	2,393,451	$	53,547	$	4,308,292
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(202)	$	—	$	(202)

CRE – Non-Owner Occupied
Pass	$	553,933	$	872,475	$	519,528	$	716,656	$	948,816	$	3,058,818	$	103,343	$	6,773,569
Watch		12,806		27,347		4,191		21,213		53,474		131,978		100		251,109
Special Mention		—		—		1,429		20,679		52,666		103,384		—		178,158
Substandard		—		1,891		—		5,540		3,138		90,150		—		100,719
Total CRE – Non-Owner Occupied	$	566,739	$	901,713	$	525,148	$	764,088	$	1,058,094	$	3,384,330	$	103,443	$	7,303,555
Current period gross write-off	$	—	$	(142)	$	—	$	(489)	$	—	$	—	$	—	$	(631)

Multifamily Real Estate
Pass	$	242,680	$	217,192	$	99,592	$	233,412	$	278,979	$	714,552	$	57,862	$	1,844,269
Watch		560		50,754		3,155		50,343		64,346		109,323		1,325		279,806
Special Mention		—		—		669		21,582		92,411		38,754		—		153,416
Substandard		—		—		732		3,547		59,131		88,454		—		151,864
Total Multifamily Real Estate	$	243,240	$	267,946	$	104,148	$	308,884	$	494,867	$	951,083	$	59,187	$	2,429,355
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(75)	$	—	$	(75)

Residential 1-4 Family – Commercial
Pass	$	49,596	$	56,981	$	49,509	$	71,277	$	169,283	$	518,183	$	5,673	$	920,502
Watch		—		25,277		2,169		1,262		6,180		15,461		3,263		53,612
Special Mention		—		1,662		1,205		—		387		16,728		—		19,982
Substandard		—		813		2,628		—		1,442		9,206		253		14,342
Total Residential 1-4 Family – Commercial	$	49,596	$	84,733	$	55,511	$	72,539	$	177,292	$	559,578	$	9,189	$	1,008,438
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other Commercial (Farmland)
Pass	$	—	$	2,563	$	234	$	694	$	3,337	$	22,676	$	474	$	29,978
Watch		585		—		233		—		165		1,376		—		2,359
Special Mention		—		—		—		66		—		7,317		1,883		9,266
Substandard		—		—		818		—		—		18		—		836
Total Other Commercial (Farmland)	$	585	$	2,563	$	1,285	$	760	$	3,502	$	31,387	$	2,357	$	42,439
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total CRE
Pass	$	1,349,445	$	2,130,075	$	1,271,441	$	1,557,770	$	1,954,998	$	6,559,110	$	437,763	$	15,260,602
Watch		15,322		112,066		29,579		116,393		151,335		363,143		18,641		806,479
Special Mention		—		8,802		5,557		54,737		154,160		247,193		31,846		502,295
Substandard		—		3,856		30,075		25,948		71,656		249,742		643		381,920
Total CRE	$	1,364,767	$	2,254,799	$	1,336,652	$	1,754,848	$	2,332,149	$	7,419,188	$	488,893	$	16,951,296
Total current period gross write-off	$	—	$	(142)	$	—	$	(489)	$	—	$	(277)	$	—	$	(908)

-28-

Table of Contents

The table below details the amortized cost and gross write-offs of the classes of loans within the Commercial and Industrial segment by risk level and year of origination as of June 30, reflecting the changes made to the Company’s allowance methodology effective January 1, 2026 (dollars in thousands):

2026

Term Loans Amortized Cost Basis by Origination Year

Revolving

2026

2025

2024

2023

2022

Prior

Loans

Total

Commercial & Industrial

Pass

781,649

1,043,792

578,123

312,908

385,264

472,697

1,475,374

5,049,807

Watch

5,620

28,772

39,281

58,302

28,831

7,833

130,240

298,879

Special Mention

—

4,820

20,166

5,487

17,165

25,448

69,873

142,959

Substandard

—

6,331

13,345

30,833

19,812

15,750

51,164

137,235

Total Commercial & Industrial

787,269

1,083,715

650,915

407,530

451,072

521,728

1,726,651

5,628,880

Current period gross write-off

—

(398)

(562)

(172)

(1)

(362)

(1,495)

Other Commercial (Other)

Pass

189,957

273,555

215,760

144,679

130,480

308,027

260,202

1,522,660

Watch

10,339

15,545

8,578

10,491

24,613

687

—

70,253

Special Mention

—

496

Substandard

—

530

—

3,559

3,133

718

6,164

14,104

Total Other Commercial (Other)

200,296

289,630

224,338

158,729

158,226

309,432

266,862

1,607,513

Current period gross write-off

—

(2,353)

—

(2,353)

Total Commercial & Industrial

Pass

971,606

1,317,347

793,883

457,587

515,744

780,724

1,735,576

6,572,467

Watch

15,959

44,317

47,859

68,793

53,444

8,520

130,240

369,132

Special Mention

—

4,820

20,166

5,487

17,165

25,448

70,369

143,455

Substandard

—

6,861

13,345

34,392

22,945

16,468

57,328

151,339

Total Commercial & Industrial

987,565

1,373,345

875,253

566,259

609,298

831,160

1,993,513

7,236,393

Total current period gross write-off

—

(398)

(562)

(172)

(2,354)

(362)

(3,848)

-29-

Table of Contents

The table below details the amortized cost and gross write-offs of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, reflecting the Company’s previous allowance methodology (dollars in thousands):


		2025
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2025		2024		2023		2022		2021		Prior		Loans		Total
Construction and Land Development
Pass	$	557,083	$	381,768	$	233,793	$	84,396	$	39,055	$	58,001	$	242,753	$	1,596,849
Watch		10,712		136		51		671		989		3,260		7,759		23,578
Special Mention		542		2,092		2,980		463		793		4,845		26,145		37,860
Substandard		319		547		74		135		2,519		4,500		—		8,094
Total Construction and Land Development	$	568,656	$	384,543	$	236,898	$	85,665	$	43,356	$	70,606	$	276,657	$	1,666,381
Current period gross write-off	$	—	$	—	$	—	$	—	$	(40)	$	(3)	$	—	$	(43)

CRE – Owner Occupied
Pass	$	442,571	$	305,006	$	298,355	$	497,750	$	500,885	$	1,823,826	$	53,556	$	3,921,949
Watch		4,532		14,892		31,258		17,474		12,006		77,890		2,121		160,173
Special Mention		6,962		7,435		6,210		10,907		6,604		77,134		1,275		116,527
Substandard		—		6,644		16,427		7,014		27,267		49,520		140		107,012
Doubtful		—		—		—		—		—		135		—		135
Total CRE – Owner Occupied	$	454,065	$	333,977	$	352,250	$	533,145	$	546,762	$	2,028,505	$	57,092	$	4,305,796
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(147)	$	—	$	(147)

CRE – Non-Owner Occupied
Pass	$	905,007	$	486,703	$	811,972	$	1,060,691	$	741,739	$	2,628,053	$	78,676	$	6,712,841
Watch		—		556		39,149		17,010		23,926		59,738		196		140,575
Special Mention		505		1,434		2,600		23,267		76,411		68,195		—		172,412
Substandard		—		—		6,264		38,108		1,138		107,153		24		152,687
Total CRE – Non-Owner Occupied	$	905,512	$	488,693	$	859,985	$	1,139,076	$	843,214	$	2,863,139	$	78,896	$	7,178,515
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(491)	$	—	$	(491)

Commercial & Industrial
Pass	$	1,125,728	$	730,095	$	446,849	$	487,440	$	251,752	$	351,402	$	1,344,042	$	4,737,308
Watch		16,322		35,316		13,751		39,156		8,963		21,615		121,435		256,558
Special Mention		6,978		16,326		5,861		8,117		4,029		5,914		60,923		108,148
Substandard		2,785		12,444		33,386		21,588		10,563		5,663		41,285		127,714
Total Commercial & Industrial	$	1,151,813	$	794,181	$	499,847	$	556,301	$	275,307	$	384,594	$	1,567,685	$	5,229,728
Current period gross write-off	$	—	$	(1,605)	$	(69)	$	(2,483)	$	(10)	$	(197)	$	(34,451)	$	(38,815)

Multifamily Real Estate
Pass	$	192,761	$	123,570	$	289,889	$	441,536	$	247,973	$	592,615	$	49,203	$	1,937,547
Watch		—		—		14,029		25,464		98,973		3,850		1,317		143,633
Special Mention		—		671		21,572		62,470		—		18,533		—		103,246
Substandard		2,372		729		—		71,278		37,422		74,668		47,355		233,824
Total Multifamily Real Estate	$	195,133	$	124,970	$	325,490	$	600,748	$	384,368	$	689,666	$	97,875	$	2,418,250
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(47)	$	—	$	(47)

Residential 1-4 Family – Commercial
Pass	$	93,538	$	70,435	$	82,732	$	198,071	$	172,024	$	408,213	$	4,255	$	1,029,268
Watch		2,975		2,533		1,558		6,193		3,887		11,349		2,431		30,926
Special Mention		2,404		1,277		—		1,209		860		17,009		—		22,759
Substandard		—		248		—		206		4,843		11,654		253		17,204
Total Residential 1-4 Family – Commercial	$	98,917	$	74,493	$	84,290	$	205,679	$	181,614	$	448,225	$	6,939	$	1,100,157
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(185)	$	—	$	(185)

Other Commercial
Pass	$	270,356	$	246,933	$	172,163	$	157,255	$	168,474	$	179,392	$	276,970	$	1,471,543
Watch		—		—		113		20,631		746		5,873		—		27,363
Special Mention		—		—		75		—		184		6,944		2,688		9,891
Substandard		556		—		4,519		3,040		1,552		35		90		9,792
Total Other Commercial	$	270,912	$	246,933	$	176,870	$	180,926	$	170,956	$	192,244	$	279,748	$	1,518,589
Current period gross write-off	$	—	$	—	$	(140)	$	(2,617)	$	—	$	(3,514)	$	—	$	(6,271)

Total Commercial
Pass	$	3,587,044	$	2,344,510	$	2,335,753	$	2,927,139	$	2,121,902	$	6,041,502	$	2,049,455	$	21,407,305
Watch		34,541		53,433		99,909		126,599		149,490		183,575		135,259		782,806
Special Mention		17,391		29,235		39,298		106,433		88,881		198,574		91,031		570,843
Substandard		6,032		20,612		60,670		141,369		85,304		253,193		89,147		656,327
Doubtful		—		—		—		—		—		135		—		135
Total Commercial	$	3,645,008	$	2,447,790	$	2,535,630	$	3,301,540	$	2,445,577	$	6,676,979	$	2,364,892	$	23,417,416
Total current period gross write-off	$	—	$	(1,605)	$	(209)	$	(5,100)	$	(50)	$	(4,584)	$	(34,451)	$	(45,999)

-30-

Table of Contents

Consumer Loans

For Consumer loans, the Company evaluates credit quality based on the delinquency status of the loan. The following table details the amortized cost and gross write-offs of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of June 30, (dollars in thousands):


		2026
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2026		2025		2024		2023		2022		Prior		Loans		Total
Residential 1-4 Family – Consumer
Current	$	234,295	$	326,422	$	184,385	$	189,915	$	665,877	$	1,276,551	$	14,607	$	2,892,052
30-59 Days Past Due		—		—		36		540		164		778		39		1,557
60-89 Days Past Due		—		—		12		—		2,834		4,139		—		6,985
90+ Days Past Due		—		281		1,169		589		511		3,143		261		5,954
Nonaccrual		—		462		647		1,109		5,973		15,621		305		24,117
Total Residential 1-4 Family – Consumer	$	234,295	$	327,165	$	186,249	$	192,153	$	675,359	$	1,300,232	$	15,212	$	2,930,665
Current period gross write-off	$	—	$	—	$	—	$	(96)	$	—	$	(24)	$	(13)	$	(133)

Residential 1-4 Family – Revolving
Current	$	9,238	$	15,944	$	9,754	$	20,010	$	34,042	$	11,848	$	1,196,364	$	1,297,200
30-59 Days Past Due		—		—		—		32		93		24		4,148		4,297
60-89 Days Past Due		—		—		19		44		148		14		1,507		1,732
90+ Days Past Due		—		74		9		95		150		—		3,991		4,319
Nonaccrual		—		55		—		123		79		—		4,726		4,983
Total Residential 1-4 Family – Revolving	$	9,238	$	16,073	$	9,782	$	20,304	$	34,512	$	11,886	$	1,210,736	$	1,312,531
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	(65)	$	(65)

Auto
Current	$	1,326	$	1,653	$	1,264	$	27,601	$	65,342	$	31,380	$	—	$	128,566
30-59 Days Past Due		—		10		—		282		1,008		553		—		1,853
60-89 Days Past Due		—		7		—		50		282		126		—		465
90+ Days Past Due		—		—		—		35		131		53		—		219
Nonaccrual		—		29		—		86		165		94		—		374
Total Auto	$	1,326	$	1,699	$	1,264	$	28,054	$	66,928	$	32,206	$	—	$	131,477
Current period gross write-off	$	—	$	(25)	$	—	$	(192)	$	(284)	$	(214)	$	—	$	(715)

Consumer
Current	$	8,312	$	11,040	$	5,819	$	3,510	$	3,734	$	27,092	$	50,723	$	110,230
30-59 Days Past Due		18		64		12		25		18		82		91		310
60-89 Days Past Due		3		36		26		4		25		217		9		320
90+ Days Past Due		—		22		—		5		3		—		3		33
Nonaccrual		—		—		12		—		4		—		—		16
Total Consumer	$	8,333	$	11,162	$	5,869	$	3,544	$	3,784	$	27,391	$	50,826	$	110,909
Current period gross write-off	$	(13)	$	(103)	$	(60)	$	(13)	$	(16)	$	(284)	$	(56)	$	(545)

Total Consumer
Current	$	253,171	$	355,059	$	201,222	$	241,036	$	768,995	$	1,346,871	$	1,261,694	$	4,428,048
30-59 Days Past Due		18		74		48		879		1,283		1,437		4,278		8,017
60-89 Days Past Due		3		43		57		98		3,289		4,496		1,516		9,502
90+ Days Past Due		—		377		1,178		724		795		3,196		4,255		10,525
Nonaccrual		—		546		659		1,318		6,221		15,715		5,031		29,490
Total Consumer	$	253,192	$	356,099	$	203,164	$	244,055	$	780,583	$	1,371,715	$	1,276,774	$	4,485,582
Total current period gross write-off	$	(13)	$	(128)	$	(60)	$	(301)	$	(300)	$	(522)	$	(134)	$	(1,458)

-31-

Table of Contents

The following table details the amortized cost and gross write-offs of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of December 31, (dollars in thousands):


		2025
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2025		2024		2023		2022		2021		Prior		Loans		Total
Residential 1-4 Family – Consumer
Current	$	334,528	$	195,624	$	203,804	$	688,989	$	596,987	$	736,230	$	16,628	$	2,772,790
30-59 Days Past Due		393		77		2,773		2,865		1,600		10,029		174		17,911
60-89 Days Past Due		525		700		124		2,186		336		1,757		—		5,628
90+ Days Past Due		—		452		309		376		937		3,503		56		5,633
Nonaccrual		—		180		1,146		5,233		3,501		12,690		547		23,297
Total Residential 1-4 Family – Consumer	$	335,446	$	197,033	$	208,156	$	699,649	$	603,361	$	764,209	$	17,405	$	2,825,259
Current period gross write-off	$	—	$	—	$	—	$	(122)	$	—	$	(53)	$	—	$	(175)

Residential 1-4 Family – Revolving