WEST BANCORPORATION, INC. ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS AND DECLARES INCREASED QUARTERLY DIVIDEND (Form 8-K)

WEST BANCORPORATION, INC. ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS AND DECLARES INCREASED QUARTERLY DIVIDEND

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

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

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

Second Quarter 2026 Compared to First Quarter 2026 Overview

•Quarterly net income was $11.1 million, an increase of $0.5 million, or 4.74 percent, compared to prior quarter.

•Quarterly return on average equity increased to 16.21 percent, compared to 15.91 percent in prior quarter.

•Loan balances were down slightly by $41.5 million, or 1.4 percent, at June 30, 2026 compared to March 31, 2026. However, average loan balances increased by $13.0 million in the second quarter of 2026 compared to the first quarter of 2026. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing.

•No credit loss expense on loans was recorded in either the second or first quarter of 2026.

•The allowance for credit losses to total loans was 1.03 percent as of June 30, 2026, compared to 1.02 percent as of March 31, 2026. There were no nonaccrual loans at June 30, 2026 or March 31, 2026. Substandard loans increased to $14.4 million as of June 30, 2026, from $0 as of March 31, 2026. The substandard loans balance consisted of loans to two borrowers, which have loans in the commercial and commercial real estate segments. In both instances, the Company believes the loans within the relationship are sufficiently collateralized. Watch list loans decreased from $41.3 million as of March 31, 2026 to $7.1 million as of June 30, 2026. This decrease was primarily due to loan payoffs totaling approximately $32.2 million.

•Deposits, excluding brokered deposits, increased $15.9 million, or 0.5 percent, in the second quarter of 2026. Brokered deposits were reduced by $6.0 million. As of June 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 27.2 percent of total deposits.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.59 percent for the first quarter of 2026. Net interest income for the second quarter of 2026 was $25.5 million, compared to $24.4 million for the first quarter of 2026. The improvement was primarily due to an increase in average loan balances and increase in loan yields for the second quarter of 2026. Loan yields increased by 6 basis points in the second quarter of 2026.

•The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 49.85 percent for the first quarter of 2026.

•The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 6.75 percent as of March 31, 2026.

Second Quarter 2026 Compared to Second Quarter 2025 Overview

•Quarterly net income was $11.1 million, an increase of $3.1 million, or 38.8 percent, compared to prior year.

•Quarterly return on average equity increased to 16.21 percent, compared to 13.65 percent in prior year.

•Loan balances were down slightly by $16.2 million at June 30, 2026, or 0.5 percent, compared to June 30, 2025. Average loan balances for the two comparable quarterly periods were relatively unchanged. We continue to experience notable loan payoffs as a result of secondary market refinancings and asset and business sales. The change in loan mix was primarily due to reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings adding real estate collateral.

•Deposits, excluding brokered deposits, increased $50.7 million, or 1.6 percent, as of June 30, 2026, compared to June 30, 2025. Brokered deposits were reduced by $97.8 million.

•Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.69 percent for the second quarter of 2026, compared to 2.27 percent for the second quarter of 2025. Net interest income for the second quarter of 2026 was $25.5 million, compared to $21.4 million for the second quarter of 2025. The increase in net interest margin and net interest income was primarily due to a decrease in interest expense on deposits. The cost of deposits decreased by 46 basis points in the second quarter of 2026 compared to the second quarter of 2025. This was primarily driven by the decline in deposit rates in response to the reduction in the federal funds rate in the second half of 2025.

•The efficiency ratio (a non-GAAP measure) was 48.78 percent for the second quarter of 2026, compared to 56.45 percent for the second quarter of 2025. The improvement in the efficiency ratio in the second quarter of 2026 compared to the second quarter of 2025 was primarily due to the increase in net interest income.

•The tangible common equity ratio was 6.97 percent as of June 30, 2026, compared to 5.94 percent as of June 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings and a decrease in accumulated other comprehensive loss.

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

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

About West Bancorporation, Inc. (Nasdaq: WTBA)

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

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

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
						As of and for the Quarter Ended																														For the Six Months Ended
KEY PERFORMANCE RATIOS AND OTHER METRICS						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025						June 30, 2026						June 30, 2025
Return on average assets(1)						1.10		%				1.06		%				0.72		%				0.92		%				0.80		%				1.08		%				0.80		%
Return on average equity(2)						16.21						15.91						11.33						15.25						13.65						16.06						13.74
Net interest margin(3)(13)						2.69						2.59						2.47						2.36						2.27						2.64						2.27
Yield on interest-earning assets(4)(13)						5.10						5.04						5.02						5.13						5.07						5.07						5.06
Cost of interest-bearing liabilities						2.88						2.90						3.02						3.26						3.28						2.89						3.27
Efficiency ratio(5)(13)						48.78						49.85						50.21						54.06						56.45						49.31						56.41
Nonperforming assets to total assets(6)						0.00						0.00						0.00						0.00						0.00
ACL ratio(7)						1.03						1.02						1.02						1.01						1.03
Loans/total assets						73.21						74.59						72.47						75.50						73.12
Loans/total deposits						88.20						89.71						86.54						91.00						87.45
Tangible common equity ratio(8)						6.97						6.75						6.42						6.40						5.94
COMMON SHARE DATA
Earnings per common share (basic)						$	0.65					$	0.62					$	0.44					$	0.55					$	0.47					$	1.27					$	0.94
Earnings per common share (diluted)						0.64						0.61						0.43						0.55						0.47						1.26						0.93
Dividends per common share						0.25						0.25						0.25						0.25						0.25						0.50						0.50
Book value per common share(9)						16.49						15.90						15.70						15.06						14.22
Closing stock price						26.53						23.79						22.19						20.32						19.63
Market price/book value(10)						160.89		%				149.62		%				141.34		%				134.93		%				138.05		%
Price earnings ratio(11)						10.18						9.40						12.71						9.31						10.41
Annualized dividend yield(12)						3.77		%				4.20		%				4.51		%				4.92		%				5.09		%
REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio						13.46		%				12.99		%				12.77		%				12.54		%				12.53		%
Tier 1 risk-based capital ratio						10.77						10.34						10.14						9.93						9.89
Tier 1 leverage capital ratio						8.91						8.74						8.44						8.51						8.33
Common equity tier 1 ratio						10.18						9.77						9.56						9.37						9.32
West Bank:
Total risk-based capital ratio						13.97		%				13.53		%				13.35		%				13.17		%				13.21		%
Tier 1 risk-based capital ratio						13.03						12.61						12.44						12.26						12.29
Tier 1 leverage capital ratio						10.79						10.66						10.35						10.50						10.36
Common equity tier 1 ratio						13.03						12.61						12.44						12.26						12.29

(1) Annualized net income divided by average assets.

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

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

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

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

(6) Total nonperforming assets divided by total assets.

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

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

(9) Includes accumulated other comprehensive loss.

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

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

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

(13) A non-GAAP measure.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
						As of
CONDENSED BALANCE SHEETS						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
Assets
Cash and due from banks						$	30,986					$	40,018					$	25,171					$	26,875					$	35,796
Interest-earning deposits with banks						260,633						180,218						324,502						109,265						212,450
Securities purchased under agreements to resell						142,080						141,742						121,413						96,792						96,955
Securities available for sale, at fair value						446,575						456,410						468,447						537,856						536,709
Federal Home Loan Bank stock, at cost						15,168						15,180						15,167						15,190						15,311
Loans						2,950,114						2,991,638						3,001,690						3,008,888						2,966,357
Allowance for credit losses						(30,530)						(30,523)						(30,525)						(30,515)						(30,539)
Loans, net						2,919,584						2,961,115						2,971,165						2,978,373						2,935,818
Premises and equipment, net						106,626						107,619						108,380						109,212						109,806
Bank-owned life insurance						46,751						46,500						46,192						45,875						45,567
Other assets						61,261						62,171						61,807						66,042						68,257
Total assets						$	4,029,664					$	4,010,973					$	4,142,244					$	3,985,480					$	4,056,669
Liabilities and Stockholders' Equity
Deposits						$	3,344,900					$	3,334,972					$	3,468,470					$	3,306,517					$	3,391,993
Borrowings						374,037						375,221						376,406						389,076						390,260
Other liabilities						29,685						30,037						31,383						34,754						33,486
Stockholders' equity						281,042						270,743						265,985						255,133						240,930
Total liabilities and stockholders' equity						$	4,029,664					$	4,010,973					$	4,142,244					$	3,985,480					$	4,056,669
						For the Quarter Ended
AVERAGE BALANCES						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
Assets						$	4,029,324					$	4,027,218					$	4,104,279					$	4,004,769					$	4,016,490
Loans						2,984,527						2,971,497						2,982,754						2,959,962						2,989,638
Deposits						3,347,452						3,348,255						3,418,539						3,333,800						3,353,982
Stockholders' equity						273,967						269,453						259,932						242,245						234,399

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
						As of
LOANS						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
Commercial						$	463,248					$	471,423					$	505,059					$	511,316					$	500,854
Real estate:
Construction, land and land development						333,753						376,059						426,833						448,660						459,037
1-4 family residential first mortgages						130,951						139,118						93,122						87,784						86,173
Home equity						25,999						27,084						26,088						27,083						24,285
Commercial						1,977,477						1,958,189						1,929,766						1,912,235						1,875,857
Consumer and other						21,347						22,257						23,374						24,697						22,900
						2,952,775						2,994,130						3,004,242						3,011,775						2,969,106
Net unamortized fees and costs						(2,661)						(2,492)						(2,552)						(2,887)						(2,749)
Total loans						$	2,950,114					$	2,991,638					$	3,001,690					$	3,008,888					$	2,966,357
Less: allowance for credit losses						(30,530)						(30,523)						(30,525)						(30,515)						(30,539)
Net loans						$	2,919,584					$	2,961,115					$	2,971,165					$	2,978,373					$	2,935,818
CREDIT QUALITY
Pass						$	2,931,300					$	2,952,824					$	2,952,015					$	2,973,103					$	2,958,318
Watch						7,112						41,306						52,227						38,672						10,788
Substandard						14,363						-						-						-						-
Doubtful						-						-						-						-						-
Total loans						$	2,952,775					$	2,994,130					$	3,004,242					$	3,011,775					$	2,969,106
DEPOSITS
Noninterest-bearing demand						$	553,660					$	511,013					$	540,358					$	512,869					$	521,990
Interest-bearing demand						506,574						489,990						577,814						448,731						461,207
Savings and money market - non-brokered						1,705,057						1,731,835						1,739,790						1,677,543						1,749,049
Money market - brokered						100,450						86,304						99,718						121,849						98,877
Total nonmaturity deposits						2,865,741						2,819,142						2,957,680						2,760,992						2,831,123
Time - non-brokered						469,159						485,658						455,944						462,542						451,463
Time - brokered						10,000						30,172						54,846						82,983						109,407
Total time deposits						479,159						515,830						510,790						545,525						560,870
Total deposits						$	3,344,900					$	3,334,972					$	3,468,470					$	3,306,517					$	3,391,993
BORROWINGS
Subordinated notes, net						$	80,287					$	80,221					$	80,156					$	80,090					$	80,024
Federal Home Loan Bank advances						270,000						270,000						270,000						270,000						270,000
Long-term debt						23,750						25,000						26,250						38,986						40,236
Total borrowings						$	374,037					$	375,221					$	376,406					$	389,076					$	390,260
STOCKHOLDERS' EQUITY
Preferred stock						$	-					$	-					$	-					$	-					$	-
Common stock						3,000						3,000						3,000						3,000						3,000
Additional paid-in capital						37,312						36,553						37,231						36,473						35,773
Retained earnings						307,408						300,596						294,259						291,069						285,990
Accumulated other comprehensive loss						(66,678)						(69,406)						(68,505)						(75,409)						(83,833)
Total stockholders' equity						$	281,042					$	270,743					$	265,985					$	255,133					$	240,930

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
						For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025
Interest income:
Loans, including fees						$	42,031					$	40,946					$	41,992					$	42,198					$	41,666
Securities:
Taxable						2,097						2,143						2,355						2,643						2,685
Tax-exempt						636						638						677						739						742
Deposits with banks						2,130						2,047						2,808						2,087						2,847
Securities purchased under agreements to resell						1,580						1,617						1,370						1,258						22
Total interest income						48,474						47,391						49,202						48,925						47,962
Interest expense:
Deposits						19,184						19,261						21,112						22,539						22,676
Subordinated notes						1,110						1,104						1,109						1,107						1,104
Federal Home Loan Bank advances						2,274						2,244						2,316						2,292						2,259
Long-term debt						385						397						459						486						504
Total interest expense						22,953						23,006						24,996						26,424						26,543
Net interest income						25,521						24,385						24,206						22,501						21,419
Credit loss expense						-						-						-						-						-
Net interest income after credit loss expense						25,521						24,385						24,206						22,501						21,419
Noninterest income:
Service charges on deposit accounts						476						508						493						491						486
Debit card interchange income						514						472						493						477						478
Trust services						1,048						1,010						964						894						801
Increase in cash value of bank-owned life insurance						313						308						317						308						295
Realized securities losses, net						-						-						(3,959)						-						-
Other income						245						256						800						333						350
Total noninterest income (loss)						2,596						2,554						(892)						2,503						2,410
Noninterest expense:
Salaries and employee benefits						7,987						7,632						7,579						7,457						7,343
Occupancy and equipment						2,006						2,006						2,083						2,090						2,034
Technology and software						822						774						789						794						791
Data processing						545						596						673						663						643
FDIC insurance						444						473						475						637						670
Professional fees						298						278						297						303						303
Other expenses						1,665						1,706						1,833						1,606						1,701
Total noninterest expense						13,767						13,465						13,729						13,550						13,485
Income before income taxes						14,350						13,474						9,585						11,454						10,344
Income taxes						3,277						2,902						2,160						2,140						2,365
Net income						$	11,073					$	10,572					$	7,425					$	9,314					$	7,979
Basic earnings per common share						$	0.65					$	0.62					$	0.44					$	0.55					$	0.47
Diluted earnings per common share						$	0.64					$	0.61					$	0.43					$	0.55					$	0.47

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
						For the Six Months Ended
CONSOLIDATED STATEMENTS OF INCOME						June 30, 2026						June 30, 2025
Interest income:
Loans, including fees						$	82,977					$	82,654
Securities:
Taxable						4,240						5,473
Tax-exempt						1,274						1,485
Deposits with banks						4,177						4,464
Securities purchased under agreements to resell						3,197						22
Total interest income						95,865						94,098
Interest expense:
Deposits						38,445						44,099
Subordinated notes						2,214						2,209
Federal Home Loan Bank advances						4,518						4,494
Long-term debt						782						1,022
Total interest expense						45,959						51,824
Net interest income						49,906						42,274
Credit loss expense						-						-
Net interest income after credit loss expense						49,906						42,274
Noninterest income:
Service charges on deposit accounts						984						957
Debit card interchange income						986						924
Trust services						2,058						1,578
Increase in cash value of bank-owned life insurance						621						577
Other income						501						617
Total noninterest income						5,150						4,653
Noninterest expense:
Salaries and employee benefits						15,619						14,347
Occupancy and equipment						4,012						3,997
Technology and software						1,596						1,577
Data processing						1,141						1,260
FDIC insurance						917						1,257
Professional fees						576						611
Other expenses						3,371						3,499
Total noninterest expense						27,232						26,548
Income before income taxes						27,824						20,379
Income taxes						6,179						4,558
Net income						$	21,645					$	15,821
Basic earnings per common share						$	1.27					$	0.94
Diluted earnings per common share						$	1.26					$	0.93

NON-GAAP FINANCIAL MEASURES

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

(in thousands)						For the Quarter Ended																														For the Six Months Ended
						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025						June 30, 2025						June 30, 2026						June 30, 2025
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)						$	25,521					$	24,385					$	24,206					$	22,501					$	21,419					$	49,906					$	42,274
Tax-equivalent adjustment (1)						75						72						70						61						59						147						125
Net interest income on a FTE basis (non-GAAP)						25,596						24,457						24,276						22,562						21,478						50,053						42,399
Average interest-earning assets						3,820,041						3,821,463						3,893,827						3,790,154						3,799,081						3,820,748						3,758,487
Net interest margin on a FTE basis (non-GAAP)						2.69		%				2.59		%				2.47		%				2.36		%				2.27		%				2.64		%				2.27		%
Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)						$	25,596					$	24,457					$	24,276					$	22,562					$	21,478					$	50,053					$	42,399
Noninterest income						2,596						2,554						(892)						2,503						2,410						5,150						4,653
Adjustment for realized securities losses, net						-						-						3,959						-						-						-						-
Adjustment for losses on disposal of premises and equipment, net						28						2						-						-						-						30						8
Adjusted income						28,220						27,013						27,343						25,065						23,888						55,233						47,060
Noninterest expense						13,767						13,465						13,729						13,550						13,485						27,232						26,548
Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)						48.78		%				49.85		%				50.21		%				54.06		%				56.45		%				49.31		%				56.41		%

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

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