ENTERPRISE FINANCIAL SERVICES CORP

Previous wording

While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the clients of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (such as wildfires and earthquakes), terrorist activities, war and geopolitical matters (including in Israel, Iran and Ukraine, and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity; and other risks discussed under the caption “Risk Factors” under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed with the SEC, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

Current wording

While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the clients of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget, debt ceiling and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (such as wildfires and earthquakes), terrorist activities, war and geopolitical instability (including in Israel, Iran and Ukraine, and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, cybersecurity threats and the cost of defending against them; and other risks discussed under the caption “Risk Factors” under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed with the SEC, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

Previous wording

The following discussion describes the significant changes to the financial condition of the Company that have occurred during the first six months of 2026 compared to the financial condition as of December 31, 2025. In addition, this discussion summarizes the significant factors affecting the results of operations of the Company for the three months ended June 30, 2026, compared to the linked first quarter of 2026 (“linked quarter”) and the results of operations, liquidity and cash flows for the six months ended June 30, 2026 compared to the same period in 2025 (“prior year-to-date period”). In light of the nature of the Company’s business, the Company’s management believes that the comparison to the linked quarter is the most relevant to understand the financial results from management’s perspective. For purposes of the Quarterly Report on Form 10-Q, the Company is presenting a comparison to the corresponding prior year-to-date period. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements included in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

The following discussion describes the significant changes to the financial condition of the Company that have occurred during the first nine months of 2026 compared to the financial condition as of December 31, 2025. In addition, this discussion summarizes the significant factors affecting the results of operations of the Company for the three months ended September 30, 2026, compared to the linked second quarter of 2026 (“linked quarter”) and the results of operations, liquidity and cash flows for the nine months ended September 30, 2026 compared to the same period in 2025 (“prior year-to-date period”). In light of the nature of the Company’s business, the Company’s management believes that the comparison to the linked quarter is the most relevant to understand the financial results from management’s perspective. For purposes of the Quarterly Report on Form 10-Q, the Company is presenting a comparison to the corresponding prior year-to-date period. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements included in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

The Company maintains separate allowances for funded loans, unfunded loans, and held-to-maturity securities, collectively referred to as the ACL. The ACL is a valuation account to adjust the cost basis to the amount expected to be collected, based on management’s experience, current conditions, and reasonable and supportable forecasts. For purposes of determining the allowance for funded and unfunded loans, the portfolios are segregated into pools that share similar risk characteristics that are then further segregated by credit grades. Loans that do not share similar risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. The Company estimates the amount of the allowance based on loan loss experience, adjusted for current and forecasted economic conditions, including unemployment, changes in GDP, and commercial and residential real estate prices. The Company’s forecast of economic conditions uses internal and external information and considers a weighted average of a baseline, upside, and downside scenarios. Because economic conditions can change and are difficult to predict, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly and have a direct impact on the Company’s credit costs. The Company’s ACL on loans was $139.2 million at June 30, 2026 based on the weighting of the different economic scenarios. As a hypothetical example, if the Company had only used the upside scenario, the allowance would have decreased $26.9 million. Conversely, the allowance would have increased $40.5 million using only the downside scenario.

Current wording

The Company maintains separate allowances for funded loans, unfunded loans, and held-to-maturity securities, collectively referred to as the ACL. The ACL is a valuation account to adjust the cost basis to the amount expected to be collected, based on management’s experience, current conditions, and reasonable and supportable forecasts. For purposes of determining the allowance for funded and unfunded loans, the portfolios are segregated into pools that share similar risk characteristics that are then further segregated by credit grades. Loans that do not share similar risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. The Company estimates the amount of the allowance based on loan loss experience, adjusted for current and forecasted economic conditions, including unemployment, changes in GDP, and commercial and residential real estate prices. The Company’s forecast of economic conditions uses internal and external information and considers a weighted average of a baseline, upside, and downside scenarios. Because economic conditions can change and are difficult to predict, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly and have a direct impact on the Company’s credit costs. The Company’s ACL on loans was $144.5 million at September 30, 2026 based on the weighting of the different economic scenarios. As a hypothetical example, if the Company had only used the upside scenario, the allowance would have decreased $26.3 million. Conversely, the allowance would have increased $41.7 million using only the downside scenario.

Previous wording

Below are highlights of the Company’s financial performance for the periods indicated. Comparisons to prior year periods are affected by the acquisition of 12 branches in Arizona and Kansas in the fourth quarter 2025 (the “Branch Acquisition”).

Current wording

Below are highlights of the Company’s financial performance for the periods indicated. Comparisons to prior year periods are affected by the acquisition of 12 branches in Arizona and Kansas in the fourth quarter 2025 (the “Branch Acquisition”). Noninterest income for the prior year period also included $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event with respect to a $24.1 million solar tax credit that the Company purchased and applied to prior taxable periods. The anticipated proceeds from the insurance policy and tax liability resulting from the recapture event, both totaling $32.1 million, are included in “Noninterest Income” and “Income Tax Expense”, respectively, in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2025.

Previous wording

•Net interest income and NIM -Net interest income of $168.7 million for the second quarter of 2026 and $334.9 million for the six months ended June 30, 2026 increased $2.6 million and $34.6 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, net interest income benefitted from higher loan and securities yields, as well as an additional day during the period. The increase from the prior year-to-date period was primarily due to higher interest-earning asset balances and lower rates paid on interest-bearing liabilities, partially offset by lower yields on loans. NIM was 4.30% for the second quarter 2026 and 4.29% for the six months ended June 30, 2026, compared to 4.28% and 4.18% for the linked and prior year-to-date periods, respectively.

Current wording

•Net interest income and NIM -Net interest income of $174.6 million for the third quarter of 2026 and $509.5 million for the nine months ended September 30, 2026 increased $5.9 million and $50.9 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, net interest income benefitted from organic loan growth, as well as an additional day during the period. Compared to the prior year-to-date period, the increase was primarily attributable to growth in average interest-earning assets and lower rates paid on interest-bearing liabilities, partially offset by higher average balances of interest-bearing liabilities. NIM was 4.30% for the third quarter 2026 and 4.29% for the nine months ended September 30, 2026, compared to 4.30% and 4.20% for the linked and prior year-to-date periods, respectively.

Previous wording

•Noninterest expense -Noninterest expense of $115.7 million for the second quarter of 2026 and $230.9 million for the six months ended June 30, 2026 increased $0.6 million and $25.4 million from the linked and prior year-to-date periods, respectively. The increase from the prior year-to-date period was primarily driven by higher employee compensation cost and headcount from the Branch Acquisition, variable deposit costs, and loan and legal expenses related to loan workouts and OREO.

Current wording

•Noninterest expense -Noninterest expense of $114.7 million for the third quarter of 2026 and $345.5 million for the nine months ended September 30, 2026 decreased $1.1 million from the linked quarter and increased $30.3 million from the prior year-to-date period. The decrease from the linked quarter was primarily driven by lower employee compensation cost, partially offset by an increase in loan and legal expenses related to OREO and loan workouts. The increase from the prior year-to-date period was primarily driven by higher employee compensation cost and headcount from the Branch Acquisition, variable deposit costs, and loan, legal, foreclosure and property maintenance expenses related to OREO and loan workouts.

Previous wording

•Loans – Total loans increased $92.1 million, or 1%, to $11.9 billion at June 30, 2026, compared to $11.8 billion at December 31, 2025. Average loans totaled $11.8 billion for the six months ended June 30, 2026 compared to $11.3 billion for the six months ended June 30, 2025.

Current wording

•Loans – Total loans increased $544.4 million, or 5%, to $12.3 billion at September 30, 2026, compared to $11.8 billion at December 31, 2025. Average loans totaled $11.9 billion for the nine months ended September 30, 2026 compared to $11.4 billion for the nine months ended September 30, 2025.

Previous wording

•Deposits – Total deposits decreased $106.8 million, to $14.5 billion at June 30, 2026 from $14.6 billion at December 31, 2025. Average deposits totaled $14.6 billion for the six months ended June 30, 2026 compared to $13.2 billion for the six months ended June 30, 2025. Noninterest-bearing deposit accounts represented 34% of total deposits and the loan to deposit ratio was 82% at June 30, 2026, compared to 33% and 81%, respectively, at December 31, 2025.

Current wording

•Deposits – Total deposits increased $517.6 million, to $15.1 billion at September 30, 2026 from $14.6 billion at December 31, 2025. Average deposits totaled $14.7 billion for the nine months ended September 30, 2026 compared to $13.3 billion for the nine months ended September 30, 2025. Noninterest-bearing deposit accounts represented 33% of total deposits and the loan to deposit ratio was 82% at September 30, 2026, compared to 33% and 81%, respectively, at December 31, 2025.

Previous wording

•Asset quality – The ACL on loans to total loans was 1.17% at June 30, 2026, compared to 1.19% at December 31, 2025. The ratio of nonperforming assets to total assets was 0.92% at June 30, 2026 compared to 0.95% at December 31, 2025. A provision for credit losses of $14.2 million was recorded in the second quarter of 2026 and $21.5 million for the six months ended June 30, 2026. This compares to $7.2 million and $8.7 million in the linked and prior year-to-date periods, respectively.

Current wording

•Asset quality – The ACL on loans to total loans was 1.17% at September 30, 2026, compared to 1.19% at December 31, 2025. The ratio of nonperforming assets to total assets was 1.03% at September 30, 2026 compared to 0.95% at December 31, 2025. A provision for credit losses of $18.1 million was recorded in the third quarter of 2026 and $39.6 million for the nine months ended September 30, 2026. This compares to $14.2 million and $17.1 million in the linked and prior year-to-date periods, respectively.

Previous wording

•Stockholders’ equity – Total stockholders’ equity was $2.0 billion at June 30, 2026 and December 31, 2025, respectively, and the tangible common equity to tangible assets ratio 2 was 9.04% at June 30, 2026 compared to 9.07% at December 31, 2025. The Company and the Bank’s regulatory capital ratios exceeded the “well-capitalized” levels at June 30, 2026.

Current wording

•Stockholders’ equity – Total stockholders’ equity was $1.9 billion at September 30, 2026, compared to $2.0 billion at December 31, 2025, and the tangible common equity to tangible assets ratio 2 was 8.13% at September 30, 2026 compared to 9.07% at December 31, 2025. The Company and the Bank’s regulatory capital ratios exceeded the “well-capitalized” levels at September 30, 2026.

Previous wording

The Board approved a quarterly dividend of $0.35 per common share, payable on September 30, 2026 to stockholders of record as of September 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) June 15, 2026 to (but excluding) September 15, 2026. The dividend will be payable on September 15, 2026 to stockholders of record of Series A Preferred Stock as of August 31, 2026.

Current wording

The Board approved a quarterly dividend of $0.36 per common share, payable on December 31, 2026 to stockholders of record as of December 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) September 15, 2026 to (but excluding) December 15, 2026. The dividend will be payable on December 15, 2026 to stockholders of record of Series A Preferred Stock as of November 30, 2026.

Previous wording

The following tables present, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as the corresponding interest rates earned and paid, all on a tax-equivalent basis.

Current wording

The following tables present, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as the corresponding interest rates earned and paid, all on a tax-equivalent basis. Average balances are presented on a daily average basis.

Previous wording

Net interest income on a tax-equivalent basis of $172.1 million for the quarter ended June 30, 2026 and $341.6 million for the six months ended June 30, 2026 increased $2.7 million and $36.1 million from the linked and prior year-to-date periods, respectively. The increase from the linked quarter reflects higher loan and securities yields, and the current quarter benefitted by one additional day compared to the linked quarter. These increases were partially offset by an increase in the average balance of interest-bearing liabilities, primarily wholesale funding sources including subordinated notes and FHLB advances. The increase from the prior year-to-date period was primarily related to growth in interest-earning assets and lower short-term interest rates on the cost of interest-bearing liabilities, partially offset by lower loan yields.

Current wording

Net interest income on a tax-equivalent basis of $177.9 million for the quarter ended September 30, 2026 and $519.5 million for the nine months ended September 30, 2026 increased $5.8 million and $52.7 million from the linked and prior year-to-date periods, respectively. The increase from the linked quarter reflects organic loan growth and the benefit of one additional day compared to the linked quarter. These increases were partially offset by an increase in the average balance of interest-bearing liabilities. The increase from the prior year-to-date period was primarily related to growth in interest-earning assets and lower short-term interest rates on the cost of interest-bearing liabilities, partially offset by higher average balances of interest-bearing liabilities.

Previous wording

Tax-equivalent interest income increased $4.3 million and $25.2 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, interest income increased primarily due to a five and eight basis point increase in yield on loans and securities, respectively, and a $51.2 million increase in average investment securities balances. Compared to the prior year-to-date period, interest-earning assets increased $1.3 billion, including a $477.0 million increase in average loan balances and an $768.0 million increase in average securities balances, and the yield on securities increased 36 basis points. These increases were partially offset by a 19 basis point decline in the loan yield to 6.41%, from 6.60% in the prior year-to-date period. The Company sold approximately $180 million of investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into new securities with a tax-equivalent yield of 5.20%. This transaction improved the overall tax-equivalent yield on securities by 200 basis points and will increase net interest income by $3.5 million annually.

Current wording

Tax-equivalent interest income increased $8.8 million and $38.3 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, interest income increased primarily due to a $291.4 million increase in average loans, a $50.5 million increase in average securities balances and one additional day during the period. Compared to the prior year-to-date period, interest-earning assets increased $1.3 billion, including a $688.2 million increase in average securities balances and a $522.8 million increase in average loan balances, and the yield on securities increased 36 basis points. These increases were partially offset by a 20 basis point decline in the loan yield to 6.41%, from 6.61% in the prior year-to-date period.

Previous wording

Interest expense increased $1.7 million and decreased $10.9 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, the increase was primarily due to higher average subordinated debt and other borrowed funds balances. Compared to the prior year-to-date period, the decrease was primarily due to a 44 basis point decline in the cost of interest-bearing liabilities, including a 58 basis point decrease in the average cost of money market accounts, partially offset by a $816.7 million increase in average interest-bearing liabilities balances. The total cost of deposits, including noninterest-bearing demand accounts, was 1.53% and 1.52% during the three and six months ended June 30, 2026, respectively, compared to 1.52% and 1.82% in the linked and prior year-to-date periods, respectively.

Current wording

Interest expense increased $3.0 million and decreased $14.4 million from the linked and prior year-to-date periods, respectively. Compared to the linked quarter, the increase in interest expense was primarily due to the first full quarter of $175 million of subordinated debt issued in the linked quarter and higher interest-bearing demand account balances, partially offset by the redemption of $7.7 million of 10.2% fixed rate trust preferred securities in the current quarter. Compared to the prior year-to-date period, the decrease was primarily due to a 42 basis point decline in the cost of interest-bearing liabilities, including a 55 basis point decrease in the average cost of money market accounts, partially offset by a $813.1 million increase in average balances of interest-bearing liabilities. The total cost of deposits, including noninterest-bearing demand accounts, was 1.54% and 1.53% during the three and nine months ended September 30, 2026, respectively, compared to 1.53% and 1.81% in the linked and prior year-to-date periods, respectively.

Previous wording

NIM, on a tax-equivalent basis, was 4.30% in the second quarter of 2026 and 4.29% for the six months ended June 30, 2026, an increase of two basis points and 11 basis points from the linked and prior year-to-date periods, respectively.

Current wording

NIM, on a tax-equivalent basis, was 4.30% in the third quarter of 2026 and 4.29% for the nine months ended September 30, 2026, stable with the linked quarter and an increase of nine basis points from the prior year-to-date period.

Previous wording

Total noninterest income for the second quarter of 2026 was $13.5 million and $32.6 million for the six months ended June 30, 2026, a decrease of $5.6 million and $6.5 million from the linked and prior year-to-date periods, respectively. The decrease from the linked and prior year-to-date periods was primarily due to lower tax credit income and a $2.1 million net loss on sales of investment securities, partially offset by a $0.7 million gain on sales of fixed assets. The decrease from the linked quarter was also due to a gain on the sale of guaranteed SBA loans that did not reoccur in the current quarter. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes. Changes in the interest rate environment had a negative impact on tax credit projects carried at fair value. During the period, the Company sold investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into securities with a tax-equivalent yield of approximately 5.20%. A pre-tax loss of approximately $6 million on the sale of these securities was partially offset by a pre-tax gain of approximately $4.4 million from the sales of Visa Class B-1 common stock and a piece of land.

Current wording

Total noninterest income for the third quarter of 2026 was $13.2 million and $45.8 million for the nine months ended September 30, 2026, a decrease of $0.3 million and $41.9 million from the linked and prior year-to-date periods, respectively. The decrease from the linked quarter was primarily due to lower tax credit income and a $1.4 million net loss on OREO, partially offset by a $3.8 million increase in rental income from OREO and a $2.1 million net loss on sales of investment securities in the linked quarter that did not reoccur included in ‘Other income’ in the table above. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes. Changes in the interest rate environment had a negative impact on tax credit projects carried at fair value.

Previous wording

The increase in noninterest expense from the prior year-to-date period was primarily due to an increase in the associate base as a result of the Branch Acquisition, merit increases throughout 2025 and 2026, an increase of $5.2 million in deposit costs due to higher earnings credit allowances and deposit vertical average balances, and an increase of $2.5 million in loan and legal expenses due to loan workouts and the foreclosure of certain properties.

Current wording

The increase in noninterest expense from the prior year-to-date period was primarily due to an increase in the associate base as a result of the Branch Acquisition and merit increases throughout 2025 and 2026, an increase of $5.6 million in deposit costs due to higher deposit vertical average balances, and an increase of $4.9 million in loan, legal, foreclosure and property maintenance expenses related to OREO and loan workouts included in ‘Other expense’ in the table above. Deposit costs relate to certain businesses in the deposit verticals that receive an earnings credit allowance for deposit-related services provided to us. These earnings credit allowances are impacted by, among other things, interest rates and average balances.

Previous wording

The Company’s effective tax rate was 21.7% for the second quarter of 2026 and 21.6% for the six months ended June 30, 2026. This compares to the linked and prior year-to-date effective tax rate of 21.5% and 19.1%. The increase in the effective tax rate from the prior year-to-date period was due to an increase in state taxes from apportionment factors and a decrease in tax credit investments.

Current wording

The Company’s effective tax rate was 22.9% for the third quarter of 2026 and 22.0% for the nine months ended September 30, 2026. This compares to the linked and prior year-to-date effective tax rate of 21.7% and 31.5%. Included in the tax expense during the prior year-to-date period is $24.1 million in transferrable tax credits that were recaptured and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding these items, the adjusted effective tax rate 3 was 19.4% for the nine months ended September 30, 2025. The increase in the effective tax rate from the linked and prior year-to-date periods was due to an increase in state taxes.

Previous wording

Total assets were $17.4 billion at June 30, 2026, an increase of $98.1 million from December 31, 2025 primarily due to a $102.2 million and $92.1 million increase in securities and loans respectively, partially offset by a $129.8 million decrease in cash and cash equivalents. Total liabilities of $15.4 billion increased $96.7 million from December 31, 2025 primarily due to the issuance of $175 million of subordinated notes, partially offset by a $106.8 million decrease in deposits.

Current wording

Total assets were $17.8 billion at September 30, 2026, an increase of $491.6 million from December 31, 2025 primarily due to a $544.4 million increase in the loan portfolio, partially offset by a $194.0 million decrease in cash and cash equivalents. Total liabilities of $15.9 billion increased $613.7 million from December 31, 2025 primarily due to a $517.6 million increase in deposits and the issuance of $175 million of subordinated notes in the second quarter 2026.

Previous wording

At June 30, 2026, investment securities were $3.8 billion compared to $3.7 billion at December 31, 2025, or 22% of total assets for both periods. The portfolio is comprised of both available-for-sale and held-to-maturity securities.

Current wording

At September 30, 2026, investment securities were $3.8 billion or 21% of total assets, compared to $3.7 billion or 22% of total assets at December 31, 2025. The portfolio is comprised of both available-for-sale and held-to-maturity securities.

Previous wording

Investment purchases in the second quarter of 2026 had a weighted average, tax-equivalent yield of 5.03%. The average duration of the investment portfolio was 5.0 years at June 30, 2026. The Company leverages the investment portfolio to lengthen the overall duration of the balance sheet, primarily using high-quality municipal securities. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $645.8 million.

Current wording

Investment purchases in the third quarter of 2026 had a weighted average, tax-equivalent yield of 4.74%. The average duration of the investment portfolio was 5.2 years at September 30, 2026. The Company leverages the investment portfolio to lengthen the overall duration of the balance sheet, primarily using high-quality municipal securities. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $675.6 million.

Previous wording

Loans totaled $11.9 billion at June 30, 2026 compared to $11.8 billion at December 31, 2025. Average revolving line draw utilization was 47% for the second quarter of 2026, compared to 44% for the year ended December 31, 2025.

Current wording

Loans totaled $12.3 billion at September 30, 2026 compared to $11.8 billion at December 31, 2025. Average revolving line draw utilization was 47% for the third quarter of 2026, compared to 44% for the year ended December 31, 2025.

Previous wording

SBA loans are also generated on a national basis, and primarily consist of loans collateralized by first lien, owner-occupied real estate properties. These loans predominantly have a 75% guarantee from the SBA. The Company may sell the guaranteed portion of the loan and retain servicing rights, and in the six months ended June 30, 2026, the guaranteed portion of SBA loans totaling $25.4 million were sold.

Current wording

SBA loans are also generated on a national basis, and primarily consist of loans collateralized by first lien, owner-occupied real estate properties. These loans predominantly have a 75% guarantee from the SBA. The Company may sell the guaranteed portion of the loan and retain servicing rights, and in the nine months ended September 30, 2026, the guaranteed portion of SBA loans totaling $25.4 million were sold.

Previous wording

A provision for credit losses of $14.2 million was recognized for the second quarter of 2026 and $21.5 million for the six months ended June 30, 2026, an increase of $7.0 million and $12.8 million from the linked and prior year-to-date periods, respectively. The provision for credit losses in the second quarter 2026 and six months ended June 30, 2026 was primarily related to net charge-offs. Most of these losses came from two accounts: an $8.3 million C&I relationship in Texas and a $5.2 million Sponsor Finance relationship. Annualized net charge-offs totaled 46 basis points of average loans in the current quarter, compared to 15 basis points in the linked quarter and two basis points of average loans in the prior year quarter.

Current wording

The provision for credit losses of $18.1 million was recognized for the third quarter of 2026 and $39.6 million for the nine months ended September 30, 2026, an increase of $3.9 million and $22.5 million from the linked and prior year-to-date periods, respectively. The provision for credit losses in the third quarter 2026 and nine months ended September 30, 2026 was primarily related to net charge-offs, the increase in nonperforming loans and organic loan growth. Charge-offs during the period primarily consisted of a $7.0 million C&I relationship in Missouri and a $2.6 million CRE relationship in California. Annualized net charge-offs totaled 36 and 33 basis points of average loans for the third quarter 2026 and nine months ended September 30, 2026, respectively, compared to 46 basis points in the linked quarter and four basis points of average loans in the prior year-to-date period.

Previous wording

Nonperforming loans at June 30, 2026 decreased $6.7 million, or 8%, when compared to December 31, 2025. The decrease in nonperforming assets during the six months ended June 30, 2026 was primarily related to charge-offs and two loans totaling $17.5 million that went on nonaccrual in the second half of 2025 and were subsequently paid off in the first quarter 2026. The decrease in nonperforming loans was partially offset by additions to nonperforming loans, including a $16.0 million CRE relationship and a $5.8 million C&I relationship that went on nonaccrual during the period.

Current wording

Nonperforming loans at September 30, 2026 increased $4.5 million, or 5%, when compared to December 31, 2025. The increase in nonperforming assets during the nine months ended September 30, 2026 was primarily related to additions to nonperforming loans, including two agricultural-related relationships totaling $18.0 million, a $7.5 million CRE relationship and a $4.1 million C&I relationship that went on nonaccrual during the period. The increase in nonperforming loans was partially offset by principal payments, including two loans totaling $17.5 million that went on nonaccrual in the second half of 2025 and were subsequently paid off in the first quarter 2026. In the current quarter, the Company foreclosed on a CRE relationship with a book value of $15.5 million that was transferred to OREO at fair market value, less selling costs, resulting in a partial charge-off of $2.6 million.

Previous wording

Total deposits were $14.5 billion at June 30, 2026, a decrease of $106.8 million from December 31, 2025. Brokered certificates of deposit at June 30, 2026 increased $14.4 million from December 31, 2025 and continue to be used as a stable funding source. The Company has deposit verticals focusing on property management, community associations, and escrow industries. These deposits increased to $4.1 billion at June 30, 2026 from $3.8 billion at December 31, 2025 due to continued success at generating organic deposit growth.

Current wording

Total deposits were $15.1 billion at September 30, 2026, an increase of $517.6 million from December 31, 2025. Brokered certificates of deposit at September 30, 2026 increased $14.0 million from December 31, 2025 and continue to be used as a stable funding source. The Company has deposit verticals focusing on property management, community associations, and escrow industries. These deposits increased to $4.2 billion at September 30, 2026 from $3.8 billion at December 31, 2025 due to continued success at generating organic deposit growth.

Previous wording

To provide clients a deposit product with enhanced FDIC insurance, the Company participates in several programs through third parties that provide full FDIC insurance on deposit amounts by exchanging or reciprocating larger depository relationships with other member banks. Total reciprocal deposits were $1.2 billion and $1.4 billion at June 30, 2026 and December 31, 2025, respectively. The Company considers reciprocal accounts as client-related deposits due to the client relationship that generated the transaction. At June 30, 2026, estimated uninsured deposits totaled $4.5 billion, or 31% of total deposits, compared to $4.6 billion, or 32% of total deposits, at December 31, 2025.

Current wording

To provide clients a deposit product with enhanced FDIC insurance, the Company participates in several programs through third parties that provide full FDIC insurance on deposit amounts by exchanging or reciprocating larger depository relationships with other member banks. Total reciprocal deposits were $1.3 billion and $1.4 billion at September 30, 2026 and December 31, 2025, respectively. The Company considers reciprocal accounts as client-related deposits due to the client relationship that generated the transaction. At September 30, 2026, estimated uninsured deposits totaled $5.4 billion, or 35% of total deposits, compared to $4.6 billion, or 32% of total deposits, at December 31, 2025.

Previous wording

The total cost of deposits was 1.53% for the current quarter and 1.52% for the six months ended June 30, 2026, compared to 1.52% and 1.82% for the linked and prior year-to-date periods, respectively.

Current wording

The total cost of deposits was 1.54% for the current quarter and 1.53% for the nine months ended September 30, 2026, compared to 1.53% and 1.81% for the linked and prior year-to-date periods, respectively.

Previous wording

Stockholders’ equity totaled $2.0 billion at June 30, 2026, an increase of $1.5 million from December 31, 2025. Significant activity during the first six months of 2026 was as follows:

Current wording

Stockholders’ equity totaled $1.9 billion at September 30, 2026, a decrease of $122.1 million from December 31, 2025. Significant activity during the first nine months of 2026 was as follows:

Previous wording

•Increase from net income of $90.3 million,

Current wording

•Increase from net income of $132.7 million,

Previous wording

•Decrease in fair value of securities and cash flow hedges of $19.1 million,

Current wording

•Decrease in fair value of securities and cash flow hedges of $142.2 million,

Previous wording

•Decrease from dividends paid on common and preferred stock of $26.4 million, and

Current wording

•Decrease from dividends paid on common and preferred stock of $39.8 million, and

Previous wording

•Decrease from common stock repurchases of $50.3 million.

Current wording

•Decrease from common stock repurchases of $84.8 million.

Previous wording

Liquidity from assets is available primarily from cash balances and the investment portfolio. Cash and interest-bearing deposits with other banks totaled $552.1 million at June 30, 2026, compared to $681.9 million at December 31, 2025. Investment securities are another important tool in liquidity planning. Securities totaled $3.8 billion and $3.7 billion at June 30, 2026 and December 31, 2025, respectively, and included $1.6 billion and $1.7 billion at June 30, 2026 and December 31, 2025, respectively, pledged as collateral for deposits of public institutions, loan notes and other requirements. The unpledged portion of the securities portfolio could be pledged or sold to enhance liquidity, if necessary.

Current wording

Liquidity from assets is available primarily from cash balances and the investment portfolio. Cash and interest-bearing deposits with other banks totaled $487.9 million at September 30, 2026, compared to $681.9 million at December 31, 2025. Investment securities are another important tool in liquidity planning. Securities totaled $3.8 billion and $3.7 billion at September 30, 2026 and December 31, 2025, respectively, and included $1.7 billion at September 30, 2026 and December 31, 2025, respectively, pledged as collateral for deposits of public institutions, loan notes and other requirements. The unpledged portion of the securities portfolio could be pledged or sold to enhance liquidity, if necessary.

Previous wording

The Company also has a portfolio of SBA guaranteed loans, a portion of which could be sold in the secondary market to generate earnings and liquidity. The guaranteed portion of SBA loans totaling $25.4 million and $55.7 million were sold during the six months ended June 30, 2026 and 2025, respectively.

Current wording

The Company also has a portfolio of SBA guaranteed loans, a portion of which could be sold in the secondary market to generate earnings and liquidity. The guaranteed portion of SBA loans totaling $25.4 million and $78.0 million were sold during the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Liability liquidity funding sources are available to increase financial flexibility. In addition to amounts borrowed at June 30, 2026, the Company could borrow an additional $1.2 billion from the FHLB of Des Moines under blanket loan pledges and has additional real estate loans that could be pledged. The Company also has $3.0 billion available from the Federal Reserve under a pledged loan agreement. The Company also has unsecured federal funds lines with eight correspondent banks totaling $135.0 million as of June 30, 2026.

Current wording

Liability liquidity funding sources are available to increase financial flexibility. In addition to amounts borrowed at September 30, 2026, the Company could borrow an additional $1.4 billion from the FHLB of Des Moines under blanket loan pledges and has additional real estate loans that could be pledged. The Company also has $2.9 billion available from the Federal Reserve under a pledged loan agreement. The Company also has unsecured federal funds lines with eight correspondent banks totaling $135.0 million as of September 30, 2026.

Previous wording

The Company’s accounting and reporting policies conform to GAAP and the prevailing practices in the banking industry. However, the Company provides additional financial measures, such as tangible common equity, adjusted ROAA, adjusted return on average common equity, ROATCE, adjusted ROATCE, ACL on loans to total loans adjusted for guaranteed loans, core efficiency ratio, PPNR, tangible book value per common share, return on average common equity and tangible common equity to tangible assets ratio, in this report that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

Current wording

The Company’s accounting and reporting policies conform to GAAP and the prevailing practices in the banking industry. However, the Company provides additional financial measures, such as tangible common equity, adjusted ROAA, adjusted return on average common equity, ROATCE, adjusted ROATCE, ACL on loans to total loans adjusted for guaranteed loans, core efficiency ratio, adjusted effective tax rate, PPNR, tangible book value per common share, return on average common equity and tangible common equity to tangible assets ratio, in this report that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

Previous wording

The Company considers its tangible common equity, adjusted ROAA, adjusted return on average common equity, ROATCE, adjusted ROATCE, ACL on loans to total loans adjusted for guaranteed loans, core efficiency ratio, PPNR, tangible book value per common share, return on average common equity and tangible common equity to tangible assets ratio, collectively “core performance measures,” presented in this report and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as acquisition costs, the net gain or loss on sales of fixed assets, the net gain or loss on OREO, and the net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

Current wording

The Company considers its tangible common equity, adjusted ROAA, adjusted return on average common equity, ROATCE, adjusted ROATCE, ACL on loans to total loans adjusted for guaranteed loans, core efficiency ratio, adjusted effective tax rate, PPNR, tangible book value per common share, return on average common equity and tangible common equity to tangible assets ratio, collectively “core performance measures,” presented in this report and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as acquisition costs, the net gain or loss on sales of fixed assets, the net gain or loss on OREO, and the net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.