UNIVEST FINANCIAL Corp

Previous wording

This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used or incorporated by reference in disclosure documents, the words "may," "will," "could," "should," "would," "believe," "anticipate," "plan," "estimate," "expect," "project," "target," and "goal," the negative of these terms and other similar expressions are intended to identify forward-looking statements, but are not the exclusive way to identify such statements. These forward-looking statements may include but are not limited to: statements of goals, intentions and expectations; statements regarding business plans, prospects, growth and operating strategies; statements regarding the quality, growth and composition of loan, investment and deposit portfolios; statements regarding our financial performance, financial condition and liquidity; and estimates of our risks and future credit provision and noninterest expenses. These forward-looking statements are based on our current beliefs and expectations and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to certain risks, uncertainties and assumptions with respect to future business strategies and decisions that are subject to change, including but not limited to those set forth below:

Current wording

This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used or incorporated by reference in disclosure documents, the words "may," "will," "could," "should," "would," "believe," "anticipate," "plan," "estimate," "expect," "project," "target," and "goal," the negative of these terms and other similar expressions are intended to identify forward-looking statements, but are not the exclusive way to identify such statements. These forward-looking statements may include but are not limited to: statements of goals, intentions and expectations; statements regarding business plans, prospects, growth, earnings and operating strategies; statements regarding the quality, growth and composition of loan, investment and deposit portfolios; statements regarding our financial performance, financial condition and liquidity; and estimates of our risks and future credit provision and noninterest expenses. These forward-looking statements are based on our current beliefs and expectations and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to certain risks, uncertainties and assumptions with respect to future business strategies and decisions that are subject to change, including but not limited to those set forth below:

Previous wording

•General economic conditions, either nationally or in our market areas, which are worse than expected, including as a result of employment levels and labor shortages, and the effect of a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;

Current wording

•General economic conditions, either nationally or in our market areas, which are worse than expected, including as a result of unemployment levels and labor shortages, and the effect of a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;

Previous wording

•Inflation or volatility in interest rates that reduce our margins and yields, the fair value of financial instruments or our level of loan originations or prepayments on loans we have made and make or the sale of loans or other assets and/or lead to higher operating costs and higher costs to retain or attract deposits;

Current wording

•Inflation or volatility in interest rates or changes in the shape of the yield curve that reduce our margins and yields, the fair value of financial instruments or our level of loan originations or prepayments on loans we have made and make or the sale of loans or other assets and/or lead to higher operating costs and higher costs to retain or attract deposits;

Previous wording

The financial results for the three months ended June 30, 2026 included a pre-tax charge of $5.2 million ($4.1 million after-tax), or $0.15 diluted earnings per share, related to a valuation adjustment on an other real estate owned (OREO) property. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. The property was initially transferred to OREO during the three months ended June 30, 2022 and was listed for sale during the quarter ended June 30, 2025. The financial results for the three months ended June 30, 2026 also included tax-free bank owned life insurance (BOLI) death benefit proceeds of $708 thousand, which represented $0.03 diluted earnings per share.

Current wording

The financial results for the nine months ended September 30, 2026 included a pre-tax charge of $5.2 million ($4.1 million after-tax), or $0.15 diluted earnings per share, related to a valuation adjustment on an other real estate owned (OREO) property. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. The property was initially transferred to OREO during the three months ended June 30, 2022 and was listed for sale during the quarter ended June 30, 2025. The financial results for the nine months ended September 30, 2026 also included tax-free bank owned life insurance (BOLI) death benefit proceeds of $1.1 million, which represented $0.04 diluted earnings per share. In addition, the financial results for the nine months ended September 30, 2026 included a $427 thousand restructuring charge ($337 thousand after-tax), or $0.01 diluted earnings per share, related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office.

Previous wording

Net interest income is the difference between interest earned primarily on loans, leases and investment securities and interest paid on deposits, borrowings, long-term debt and subordinated notes. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents the Corporation’s average balances, tax-equivalent interest income, interest expense, tax-equivalent yields earned on average assets, cost of average liabilities, and shareholders' equity on a tax-equivalent basis for the three and six months ended June 30, 2026 and 2025. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the weighted average tax-equivalent yield on interest-earning assets less the weighted average cost of interest-bearing liabilities. The effect of net interest-free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders' equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components.

Current wording

Net interest income is the difference between interest earned primarily on loans, leases and investment securities and interest paid on deposits, borrowings, long-term debt and subordinated notes. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents the Corporation’s average balances, tax-equivalent interest income, interest expense, tax-equivalent yields earned on average assets, cost of average liabilities, and shareholders' equity on a tax-equivalent basis for the three and nine months ended September 30, 2026 and 2025. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the weighted average tax-equivalent yield on interest-earning assets less the weighted average cost of interest-bearing liabilities. The effect of net interest-free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders' equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components.

Previous wording

Net interest income on a tax-equivalent basis for the three months ended June 30, 2026 was $66.7 million, an increase of $6.8 million, or 11.3%, compared to $60.0 million for the three months ended June 30, 2025. Net interest income on a tax-equivalent basis for thesix months ended June 30, 2026 was $130.6 million, an increase of $13.5 million, or 11.5%, compared to $117.1 million for thesix months ended June 30, 2025. The increase in tax-equivalent net interest income for the three andsix months ended June 30, 2026 compared to the comparable periods in the prior year was driven by higher average balances of interest-earning assets, and a reduction in our cost of funds, partially offset by higher average balances of interest-bearing liabilities.

Current wording

Net interest income on a tax-equivalent basis for the three months ended September 30, 2026 was $68.3 million, an increase of $6.5 million, or 10.6%, compared to $61.7 million for the three months ended September 30, 2025. Net interest income on a tax-equivalent basis for the nine months ended September 30, 2026 was $198.9 million, an increase of $20.0 million, or 11.2%, compared to $178.9 million for the nine months ended September 30, 2025. The increase in tax-equivalent net interest income for the three and nine months ended September 30, 2026 compared to the comparable periods in the prior year was driven by higher average balances of interest-earning assets, and a reduction in our cost of funds, partially offset by higher average balances of interest-bearing liabilities.

Previous wording

The net interest margin, on a tax-equivalent basis, was 3.49% and 3.41% for the three and six months ended June 30, 2026, respectively, compared to 3.20% and 3.14% for the three and six months ended June 30, 2025, respectively. Excess liquidity reduced net interest margin by approximately four and eight basis points for the three and six months ended June 30, 2026, respectively, and approximately four basis points for the three and six months ended June 30, 2025.

Current wording

The net interest margin, on a tax-equivalent basis, was 3.42% and 3.41% for the three and nine months ended September 30, 2026, respectively, compared to 3.17% and 3.15% for the three and nine months ended September 30, 2025, respectively. Excess liquidity reduced net interest margin by approximately 13 and ten basis points for the three and nine months ended

Previous wording

Net interest income includes net deferred costs amortization of $801 thousand and $689 thousand for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Net interest income includes net deferred costs amortization of $820 thousand and $687 thousand for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Net interest income includes net deferred costs amortization of $1.6 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Net interest income includes net deferred costs amortization of $2.4 million and $1.9 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2026 and 2025 have been calculated using the Corporation's federal applicable rate of 21%.

Current wording

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2026 and 2025 have been calculated using the Corporation's federal applicable rate of 21%.

Previous wording

The provision for credit losses for the three months ended June 30, 2026 and 2025 was $2.7 million and $5.7 million, respectively. The provision for credit losses for the six months ended June 30, 2026 and 2025 was $4.0 million and $8.0 million, respectively. The following table details information pertaining to the Corporation’s allowance for credit losses on loans and leases as a percentage of loans and leases held for investment at the dates indicated.

Current wording

The provision for credit losses for the three months ended September 30, 2026 and 2025 was $9.0 million and $517 thousand, respectively. The provision for credit losses for the nine months ended September 30, 2026 and 2025 was $13.0 million and $8.5 million, respectively. During the third quarter, a nonaccrual commercial loan relationship totaling $28.3 million with a specific reserve of $9.8 million incurred charge-offs of $14.4 million. The remaining carrying value was supported by a letter of intent to sell the business. In addition, a separate $6.9 million commercial loan relationship incurred a $2.7 million charge-off and was subsequently paid in full. The following table details information pertaining to the Corporation’s allowance for credit losses on loans and leases as a percentage of loans and leases held for investment at the dates indicated.

Previous wording

The following table presents noninterest income for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table presents noninterest income for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Noninterest income for the three months ended June 30, 2026 was $18.1 million, a decrease of $3.4 million, or 15.8%, from the three months ended June 30, 2025. Noninterest income for the six months ended June 30, 2026 was $42.2 million, a decrease of $1.7 million, or 3.9%, from the six months ended June 30, 2025.

Current wording

Noninterest income for the three months ended September 30, 2026 was $22.3 million, an increase of $346 thousand, or 1.6%, from the three months ended September 30, 2025. Noninterest income for the nine months ended September 30, 2026 was $64.5 million, a decrease of $1.4 million, or 2.1%, from the nine months ended September 30, 2025.

Previous wording

Investment advisory commission and fee income increased $583 thousand, or 10.7%, for the three months ended June 30, 2026 and $1.1 million, or 10.2%, for the six months ended June 30, 2026 from the comparable periods in the prior year, driven by appreciation in assets under management and new customer relationships.

Current wording

Investment advisory commission and fee income increased $762 thousand, or 13.4%, for the three months ended September 30, 2026 and $1.9 million, or 11.3%, for the nine months ended September 30, 2026 from the comparable periods in the prior year, driven by appreciation in assets under management and new customer relationships.

Previous wording

BOLI increased $686 thousand, or 67.8%, for the three months ended June 30, 2026 from the comparable period in the prior year. The financial results for the three months ended June 30, 2026 included $708 thousand in BOLI death benefit proceeds compared to $71 thousand for the three months ended June 30, 2025.

Current wording

BOLI decreased $920 thousand, or 48.2%, for the three months ended September 30, 2026 and $861 thousand, or 17.6%, for the nine months ended September 30, 2026 from the comparable periods in the prior year. The financial results for the three months ended September 30, 2025 included $967 thousand in BOLI death benefit proceeds. The financial results for the nine months ended September 30, 2026 included $1.1 million in BOLI death benefit proceeds compared to $2.1 million for the nine months ended September 30, 2025.

Previous wording

Net gain on mortgage banking activities increased $365 thousand, or 37.2%, for the three months ended June 30, 2026 and $509 thousand, or 31.3%, for the six months ended June 30, 2026 from the comparable periods in the prior year, primarily due to increased salable volume and increased margins.

Current wording

Net gain on mortgage banking activities increased $825 thousand, or 33.3%, for the nine months ended September 30, 2026 from the comparable period in the prior year, primarily due to increased salable volume and increased margins.

Previous wording

Insurance commission and fee income increased $624 thousand, or 5.1%, for the six months ended June 30, 2026 from the comparable period in the prior year, primarily due to increases of $268 thousand and $161 thousand in premiums on commercial lines and life and health overrides, respectively. Additionally, contingent income increased $208 thousand for the six months ended June 30, 2026, from $1.6 million for the six months ended June 30, 2025 to $1.8 million for the six months ended June 30, 2026. Contingent income is largely recognized in the first quarter of each year.

Current wording

Insurance commission and fee income increased $589 thousand, or 3.3%, for the nine months ended September 30, 2026 from the comparable period in the prior year, primarily due to an increase of $383 thousand in commission on commercial policies. Additionally, contingent income increased $212 thousand for the nine months ended September 30, 2026, from $1.6 million for the nine months ended September 30, 2025 to $1.8 million for the nine months ended September 30, 2026. Contingent income is largely recognized in the first quarter of each year.

Previous wording

Net loss on the sale and write-down of OREO increased $5.2 million for the three and six months ended June 30, 2026 from the comparable periods in the prior year due to the valuation adjustment recorded during the quarter as previously mentioned.

Current wording

Net loss on the sale and write-down of OREO increased $5.3 million for the nine months ended September 30, 2026 from the comparable period in the prior year due to a valuation adjustment on an OREO property recorded during the second quarter of 2026. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell.

Previous wording

The following table presents noninterest expense for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table presents noninterest expense for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Noninterest expense for the three months ended June 30, 2026 was $53.1 million, an increase of $2.8 million, or 5.5%, from the three months ended June 30, 2025. Noninterest expense for the six months ended June 30, 2026 was $105.8 million, an increase of $6.1 million, or 6.2%, from the six months ended June 30, 2025.

Current wording

Noninterest expense for the three months ended September 30, 2026 was $54.0 million, an increase of $3.3 million, or 6.6%, from the three months ended September 30, 2025. Noninterest expense for the nine months ended September 30, 2026 was $159.8 million, an increase of $9.5 million, or 6.3%, from the nine months ended September 30, 2025.

Previous wording

Salaries, benefits and commissions increased $1.7 million, or 5.3%, for the three months ended June 30, 2026 and $4.3 million, or 6.9%, for the six months ended June 30, 2026 from the comparable periods in the prior year. The increases were primarily driven by higher salary expense of $1.3 million and $2.6 million, respectively, due to annual merit increases, as well as increased medical claims expense of $375 thousand and $1.1 million, respectively.

Current wording

Salaries, benefits and commissions increased $2.6 million, or 8.2%, for the three months ended September 30, 2026 and $6.9 million, or 7.3%, for the nine months ended September 30, 2026 from the comparable periods in the prior year. The increases were primarily driven by higher salary expense of $1.4 million and $4.0 million, respectively, due to annual merit increases and higher staffing levels, as well as increased medical claims expense of $390 thousand and $1.5 million, respectively. In addition, commission expense increased $258 thousand and $457 thousand for the three and nine months ended September 30, 2026, respectively.

Previous wording

Marketing and advertising expense increased $490 thousand, or 98.4%, for the three months ended June 30, 2026 and $771 thousand, or 90.6%, for the six months ended June 30, 2026 from the comparable periods in the prior year. These increases were primarily driven by the inclusion of certain sponsorship activities that were historically reported in Other Expense and the Corporation's entry into a sponsorship agreement with a local university, enhancing community engagement and visibility.

Current wording

Marketing and advertising expense increased $463 thousand, or 143.3%, for the three months ended September 30, 2026 and $1.2 million, or 105.1%, for the nine months ended September 30, 2026 from the comparable periods in the prior year. These increases were primarily driven by the inclusion of certain sponsorship activities that were historically reported in Other Expense and the Corporation's entry into a sponsorship agreement with a local university, enhancing community engagement and visibility.

Previous wording

Restructuring charges increased $427 thousand for the six months ended June 30, 2026 from the comparable period in the prior year related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office.

Current wording

Restructuring charges increased $427 thousand for the nine months ended September 30, 2026 from the comparable period in the prior year related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office.

Previous wording

The Corporation recognized a tax expense of $5.6 million and $5.0 million for the three months ended June 30, 2026 and 2025, respectively, resulting in effective tax rates of 19.6% and 20.1% for the respective periods. The Corporation recognized a tax expense of $12.0 million and $10.2 million for the six months ended June 30, 2026 and 2025, respectively, resulting in effective tax rates of 19.3% and 19.4% for the respective periods. The effective tax rates for the three and six months ended June 30, 2026 and 2025 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rates for the six months ended June 30, 2026 and 2025 were favorably impacted by proceeds of BOLI death benefits and the impact of equity compensation awards.

Current wording

The Corporation recognized a tax expense of $5.5 million and $6.4 million for the three months ended September 30, 2026 and 2025, respectively, resulting in effective tax rates of 20.2% and 20.0% for the respective periods. The Corporation recognized a tax expense of $17.5 million and $16.6 million for the nine months ended September 30, 2026 and 2025, respectively, resulting in an effective tax rate of 19.6% for both periods. The effective tax rates for the three and nine months ended September 30, 2026 and 2025 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rates for the nine months ended September 30, 2026 and 2025 were favorably impacted by proceeds of BOLI death benefits and the impact of equity compensation awards.

Previous wording

Cash and interest-earning deposits decreased $358.4 million, or 64.7%, from December 31, 2025, primarily due to a decrease in interest-earning deposits at the Federal Reserve Bank of $369.9 million due to seasonal decreases in public funds and growth in loans and leases held for investment.

Current wording

Cash and interest-earning deposits increased $71.4 million, or 12.9%, from December 31, 2025, primarily due to an increase in interest-earning deposits at the Federal Reserve Bank of $74.7 million due to seasonal increases in public funds deposits.

Previous wording

Total investment securities at June 30, 2026 increased $1.2 million, or 0.2%, from December 31, 2025 as purchases of $50.5 million, which were primarily residential mortgage-backed securities, were offset by maturities and pay-downs of $39.8 million, sales of $5.7 million, decreases in the fair value of available-for-sale investment securities of $2.4 million, calls of $999 thousand, net amortization of purchased premiums and discounts of $429 thousand and a provision for credit losses of $23 thousand.

Current wording

Total investment securities at September 30, 2026 decreased $4.6 million, or 0.9%, from December 31, 2025 as maturities and pay-downs of $56.6 million, sales of $7.7 million, decreases in the fair value of available-for-sale investment securities of $14.3 million, calls of $999 thousand, net amortization of purchased premiums and discounts of $635 thousand and a provision for credit losses of $70 thousand were offset by purchases of $75.7 million, which were primarily residential mortgage-backed securities.

Previous wording

Gross loans and leases held for investment increased $127.2 million, or 1.8%, from December 31, 2025. The increase in gross loans and leases held for investment was primarily due to increases in commercial, construction and commercial real estate loans, partially offset by a decrease in residential mortgage loans. For more information on the composition of the commercial loan portfolio, see "Table 4 - Loan Portfolio Overview."

Current wording

Gross loans and leases held for investment increased $99.6 million, or 1.4%, from December 31, 2025. During the third quarter of 2026, a $35.3 million shared national credit relationship was paid-off and a $14.4 million charge-off was recorded against a $28.3 million commercial loan relationship. The increase in gross loans and leases held for investment from December 31, 2025 was primarily driven by growth in commercial construction and commercial real estate loans, after adjusting for the impact of the aforementioned payoff and charge-off. This growth was partially offset by a decrease in residential mortgage loans. For more information on the composition of the commercial loan portfolio, see "Table 4 - Loan Portfolio Overview."

Previous wording

At June 30, 2026, nonaccrual loans and leases were $43.9 million and had a related allowance for credit losses on loans and leases of $10.9 million. At December 31, 2025, nonaccrual loans and leases were $13.7 million and had a related allowance for credit losses on loans and leases of $3.0 million. During the first quarter of 2026, a $3.9 million commercial real estate loan was placed on nonaccrual status. Subsequent to its nonaccrual designation, the loan incurred a $195 thousand charge-off. During the second quarter of 2026, a commercial loan relationship totaling $28.6 million was placed on nonaccrual status with a specific reserve of $9.8 million. Additionally, during the second quarter of 2026, two nonaccrual commercial loans totaling $1.7 million were charged-off. These loans were fully reserved prior to charge-off. Individual reserves have been established based on current facts and management's judgments about the ultimate outcome of these credits, including the most recent known data available on any related underlying collateral and the borrower's cash flows. The amount of individual reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits.

Current wording

At September 30, 2026, nonaccrual loans and leases were $31.2 million and had a related allowance for credit losses on loans and leases of $1.3 million. At December 31, 2025, nonaccrual loans and leases were $13.7 million and had a related allowance for credit losses on loans and leases of $3.0 million. During the first quarter of 2026, a $3.9 million commercial real estate loan was placed on nonaccrual status. Subsequent to its nonaccrual designation, the loan incurred a $195 thousand charge-off. During the second quarter of 2026, two nonaccrual commercial loans totaling $1.7 million were charged-off. These loans were fully reserved prior to charge-off. During the third quarter, a $28.3 million nonaccrual commercial loan relationship incurred charge-offs of $14.4 million. This relationship had a specific reserve of $9.8 million, and the remaining carrying value was supported by a letter of intent to sell the business. Individual reserves have been established based on current facts and management's judgments about the ultimate outcome of these credits, including the most recent known data available on any related underlying collateral and the borrower's cash flows. The amount of individual reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits.

Previous wording

Net loan and lease charge-offs for the three months ended June 30, 2026 were $1.9 million compared to $7.8 million for the same period in the prior year. Net loan and lease charge-offs for the six months ended June 30, 2026 were $3.2 million compared to $9.5 million for the same period in the prior year. The three and six months ended June 30, 2025 included a $7.3 million charge-off on a commercial loan relationship.

Current wording

Net loan and lease charge-offs for the three months ended September 30, 2026 were $17.6 million compared to $480 thousand for the same period in the prior year. Net loan and lease charge-offs for the nine months ended September 30, 2026 were $20.8 million compared to $10.0 million for the same period in the prior year. The three and nine months ended September 30, 2026 included a $14.4 million charge-off on a commercial loan relationship as previously discussed. Additionally, a separate $6.9 million commercial loan relationship incurred a $2.7 million charge-off and was subsequently paid in full within the quarter.

Previous wording

Other real estate owned (OREO) was $18.9 million at June 30, 2026, compared to $23.9 million at December 31, 2025. During the second quarter of 2026, a commercial real estate property incurred a $5.2 million valuation adjustment. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. Repossessed assets were $10 thousand and $65 thousand at June 30, 2026 and December 31, 2025, respectively. During the six months ended June 30, 2026, repossessed assets totaling $88 thousand were acquired, repossessed assets totaling $19 thousand were written down and repossessed assets totaling $124 thousand were sold.

Current wording

Other real estate owned (OREO) was $19.3 million at September 30, 2026, compared to $23.9 million at December 31, 2025. During the second quarter of 2026, a commercial real estate property incurred a $5.2 million valuation adjustment. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. Repossessed assets were $50 thousand and $65 thousand at September 30, 2026 and December 31, 2025, respectively. During the nine months ended September 30, 2026, repossessed assets totaling $138 thousand were acquired, repossessed assets totaling $19 thousand were written down and repossessed assets totaling $134 thousand were sold.

Previous wording

Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of core deposit and customer-related intangibles was $92 thousand and $131 thousand for the three months ended June 30, 2026 and 2025, respectively. The amortization of core deposit and customer-related intangibles was $185 thousand and $261 thousand for the six months ended June 30, 2026 and 2025, respectively. See Note 5 to the Condensed Unaudited

Current wording

Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of core deposit and customer-related intangibles was $69 thousand and $106 thousand for the three months ended September 30, 2026 and 2025, respectively. The amortization of core deposit and customer-related intangibles was $254 thousand and $367 thousand for the nine months ended September 30, 2026 and 2025, respectively. See Note 5 to the Condensed Unaudited Consolidated Financial Statements, "Goodwill and Other Intangible Assets," for a summary of intangible assets at September 30, 2026 and December 31, 2025.

Previous wording

The Corporation also has goodwill with a net carrying value of $175.5 million at June 30, 2026 and December 31, 2025, which is deemed to be an indefinite intangible asset and is not amortized. The Corporation completes a goodwill impairment analysis on an annual basis, or more often if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the six months ended June 30, 2026 or 2025. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.

Current wording

The Corporation also has goodwill with a net carrying value of $175.5 million at September 30, 2026 and December 31, 2025, which is deemed to be an indefinite intangible asset and is not amortized. The Corporation completes a goodwill impairment analysis on an annual basis, or more often if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the nine months ended September 30, 2026 or 2025. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.

Previous wording

Total deposits decreased $154.3 million, or 2.2%, from December 31, 2025 primarily due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. At June 30, 2026, noninterest-bearing deposits totaling $1.5 billion represented 21.1% of total deposits compared to $1.4 billion representing 20.2% of total deposits at December 31, 2025. At June 30, 2026 and December 31, 2025, unprotected deposits, which exclude insured, internal, and collateralized deposit accounts, totaled $1.7 billion and $1.6 billion, respectively, which represented 24.6% and 23.2% of total deposits for the respective periods.

Current wording

Total deposits increased $267.2 million, or 3.8%, from December 31, 2025 primarily due to seasonal increases in public funds deposits and increases in commercial deposits, partially offset by decreases in consumer and brokered deposits. At September 30, 2026, noninterest-bearing deposits totaled $1.4 billion, which represented 19.1% of total deposits compared to $1.4 billion, which represented 20.2% of total deposits at December 31, 2025. At September 30, 2026 and December 31, 2025, unprotected deposits, which exclude insured, internal, and collateralized deposit accounts, totaled $1.7 billion and $1.6 billion, respectively, which represented 23.2% and 23.2% of total deposits for the respective periods.

Previous wording

Total borrowings decreased $80.5 million, or 24.9%, from December 31, 2025, primarily due to maturities of long-term FHLB advances totaling $100.0 million, offset by a $25.0 million long-term FHLB advance, and a $5.6 million decrease in customer repurchase agreements.

Current wording

Total borrowings decreased $99.0 million, or 30.6%, from December 31, 2025, primarily due to maturities of long-term FHLB advances totaling $100.0 million, offset by a $25.0 million long-term FHLB advance, and a $24.2 million decrease in customer repurchase agreements.

Previous wording

Other liabilities decreased $8.4 million, or 15.4%, from December 31, 2025, primarily due to the payment of previously accrued annual incentive compensation.

Current wording

Other liabilities decreased $3.1 million, or 5.7%, from December 31, 2025, primarily due to the payment of previously accrued annual incentive compensation.

Previous wording

Total shareholders' equity increased $10.9 million, or 1.2%, from December 31, 2025. Retained earnings at June 30, 2026 increased by $37.1 million primarily due to net income of $50.0 million offset by $12.6 million in cash dividends paid during the six months ended June 30, 2026. Accumulated other comprehensive loss increased by $1.3 million, which was primarily attributable to decreases in the fair value of available-for-sale investment securities of $1.9 million, net of tax. Treasury stock increased $23.5 million from December 31, 2025, related to repurchases of 776,677 shares at a cost of $28.5 million, offset by $5.1 million of stock issued under the dividend reinvestment and employee stock purchase plans and stock-based incentive plan activity.

Current wording

Total shareholders' equity increased $5.8 million, or 0.6%, from December 31, 2025. Retained earnings at September 30, 2026 increased by $52.4 million primarily due to net income of $71.6 million offset by $18.9 million in cash dividends paid during the nine months ended September 30, 2026. Accumulated other comprehensive loss increased by $10.7 million, which was primarily attributable to decreases in the fair value of available-for-sale investment securities of $11.3 million, net of tax. Treasury stock increased $35.7 million from December 31, 2025, related to repurchases of 1,077,804 shares at a cost of $41.5 million, offset by $7.2 million of stock issued under the dividend reinvestment and employee stock purchase plans and stock-based incentive plan activity.

Previous wording

The Banking segment reported pre-tax income of $28.1 million and $26.6 million for the three months ended June 30, 2026 and 2025, respectively, and pre-tax income of $57.2 million and $52.7 million for the six months ended June 30, 2026 and 2025, respectively. See the section of this Management's Discussion and Analysis under the headings "Results of Operations" and "Financial Condition" for a discussion of key items impacting the Banking Segment.

Current wording

The Banking segment reported pre-tax income of $25.6 million and $32.5 million for the three months ended September 30, 2026 and 2025, respectively, and pre-tax income of $82.8 million and $85.2 million for the nine months ended September 30, 2026 and 2025, respectively. See the section of this Management's Discussion and Analysis under the headings "Results of Operations" and "Financial Condition" for a discussion of key items impacting the Banking Segment.

Previous wording

The Wealth Management segment reported pre-tax income of $2.4 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively, which included noninterest income of $8.4 million in 2026 and $7.7 million in 2025, and pre-tax income of $4.9 million and $3.8 million for the six months ended June 30, 2026 and 2025, respectively, which included noninterest income of $16.9 million in 2026 and $15.5 million in 2025. The increase in pre-tax income and noninterest income for the three and six months ended June 30, 2026 was driven by appreciation in assets under management compared to the previous year and new customer relationships. Assets under management and supervision were $6.2 billion as of June 30, 2026, $5.8 billion as of March 31, 2026, $5.4 billion as of June 30, 2025 and $5.2 billion as of March 31, 2025.

Current wording

The Wealth Management segment reported pre-tax income of $2.7 million and $2.1 million for the three months ended September 30, 2026 and 2025, respectively, which included noninterest income of $8.8 million in 2026 and $8.0 million in 2025, and pre-tax income of $7.6 million and $5.9 million for the nine months ended September 30, 2026 and 2025, respectively, which included noninterest income of $25.7 million in 2026 and $23.5 million in 2025. The increase in pre-tax income and noninterest income for the three and nine months ended September 30, 2026 was driven by appreciation in assets under management compared to the previous year and new customer relationships. Assets under management and supervision were $6.2 billion as of September 30, 2026 and June 30, 2026, $5.8 billion as of September 30, 2025 and $5.4 billion as of June 30, 2025.

Previous wording

The Insurance segment reported pre-tax income of $1.1 million and $964 thousand for the three months ended June 30, 2026 and 2025, respectively, which included noninterest income of $5.4 million in 2026 and $5.3 million in 2025, and pre-tax income of $4.1 million and $3.4 million for the six months ended June 30, 2026 and 2025, respectively, which included noninterest income of $12.8 million in 2026 and $12.2 million in 2025. The increase in pre-tax income and noninterest income for the three months ended June 30, 2026 was primarily due to an increase of $154 thousand in life and health overrides, partially offset by a decrease of $74 thousand in premiums on commercial lines. The increase in pre-tax income and noninterest income for the six months ended June 30, 2026 was primarily due to increases of $268 thousand and $161 thousand in premiums on commercial lines and life and health overrides, respectively. Additionally, contingent income increased $208 thousand for the six months ended June 30, 2026, from $1.6 million for the six months ended June 30, 2025 to $1.8 million for the six months ended June 30, 2026. Contingent income is largely recognized in the first quarter of the year.

Current wording

The Insurance segment reported pre-tax income of $995 thousand and $1.1 million for the three months ended September 30, 2026 and 2025, respectively, which included noninterest income of $5.4 million in 2026 and $5.5 million in 2025, and pre-tax income of $5.1 million and $4.5 million for the nine months ended September 30, 2026 and 2025, respectively, which included noninterest income of $18.2 million in 2026 and $17.7 million in 2025. The increase in pre-tax income and noninterest income for the nine months ended September 30, 2026 was primarily due to an increase of $383 thousand in commission on commercial policies. Additionally, contingent income increased $212 thousand for the nine months ended September 30, 2026, from $1.6 million for the nine months ended September 30, 2025 to $1.8 million for the nine months ended September 30, 2026. Contingent income is largely recognized in the first quarter of the year.

Previous wording

The Corporation and its subsidiaries maintain ample ability to meet the liquidity needs of its customers. Our most liquid assets, unencumbered cash and cash equivalents, were $193.8 million and $549.2 million at June 30, 2026 and December 31, 2025, respectively. Unencumbered securities classified as available-for-sale, which provide additional sources of liquidity, totaled $51.7 million and $37.3 million at June 30, 2026 and December 31, 2025, respectively. Further, the Corporation and its subsidiaries had committed borrowing capacity from the Federal Home Loan Bank, Federal Reserve Bank and a correspondent bank of $3.7 billion and $3.8 billion at June 30, 2026 and December 31, 2025, respectively, of which $2.4 billion and $2.3 billion was available as of June 30, 2026 and December 31, 2025, respectively. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $422.0 million and $457.0 million at June 30, 2026 and December 31, 2025, respectively. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Current wording

The Corporation and its subsidiaries maintain ample ability to meet the liquidity needs of its customers. Our most liquid assets, unencumbered cash and cash equivalents, were $623.5 million and $549.2 million at September 30, 2026 and December 31, 2025, respectively. Unencumbered securities classified as available-for-sale, which provide additional sources of liquidity, totaled $30.8 million and $37.3 million at September 30, 2026 and December 31, 2025, respectively. Further, the Corporation and its subsidiaries had committed borrowing capacity from the Federal Home Loan Bank, Federal Reserve Bank and a correspondent bank of $3.7 billion and $3.8 billion at September 30, 2026 and December 31, 2025, respectively, of which $2.0 billion and $2.3 billion was available as of September 30, 2026 and December 31, 2025, respectively. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $422.0 million and $457.0 million at September 30, 2026 and December 31, 2025, respectively. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.