BAR HARBOR BANKSHARES

Previous wording

The following is management’s discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and six months ended June 30, 2026 and should be read in conjunction with our unaudited consolidated financial statements and condensed notes thereto included elsewhere in this Form 10-Q as well as our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K. The following discussion contains "forward-looking statements" that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. Factors that could cause such differences are discussed in the sections titled "Cautionary Statement Regarding Forward-Looking Statements", “Part I, Item 1.A. Risk Factors” in the Form 10-K, and "Part II, Item 1A. Risk Factors" in this Form 10-Q. All amounts, dollars and percentages presented in this Form 10-Q are rounded and therefore approximate.

Current wording

The following is management’s discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and nine months ended September 30, 2026 and should be read in conjunction with our unaudited consolidated financial statements and condensed notes thereto included elsewhere in this Form 10-Q as well as our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K. The following discussion contains "forward-looking statements" that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. Factors that could cause such differences are discussed in the sections titled "Cautionary Statement Regarding Forward-Looking Statements", “Part I, Item 1.A. Risk Factors” in the Form 10-K, and "Part II, Item 1A. Risk Factors" in this Form 10-Q. All amounts, dollars and percentages presented in this Form 10-Q are rounded and therefore approximate.

Previous wording

The Company is a bank holding company headquartered in Maine, providing a broad array of banking and nonbanking products and services to businesses and consumers primarily within our three-state footprint. The Company's primary sources of revenue, through the Bank, are net interest income (predominantly from loans and investment securities) and noninterest income (principally fees and other revenue from financial services provided to customers or ancillary services tied to loans and deposits).

Current wording

The Company is a bank holding company headquartered in Maine, providing a broad array of banking and nonbanking products and services to businesses and consumers primarily within our three-state footprint. The Company's primary sources of revenue, through the Bank, are net interest income (predominantly from loans and investment securities) and non-interest income (principally fees and other revenue from financial services provided to customers or ancillary services tied to loans and deposits).

Previous wording

Our accounting and reporting policies conform to GAAP and the prevailing practices in the financial services industry. However, we also evaluate our performance by reference to certain additional financial measures discussed in this Form 10-Q that we identify as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.

Current wording

Our accounting and reporting policies conform to GAAP and the prevailing practices in the financial services industry. However, we also evaluate our performance by reference to certain additional financial measures discussed in this Form 10-Q that we identify as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both. Management believes that these non-GAAP financial measures provide additional understanding of our ongoing operations, enhance the comparability of our results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in our underlying performance.

Previous wording

Total cash and cash equivalents were $104.4 million at the end of the second quarter 2026, compared to $80.8 million at the end of the fourth quarter 2025. Interest-earning deposits with other banks increased to $58.1 million at the end of the second quarter 2026, compared to $35.9 million at the end of the fourth quarter 2025 and yielded 3.92% and 4.53%, respectively. The increase in cash balances was driven primarily by loan payoffs as well as end of quarter timing.

Current wording

Total cash and cash equivalents were $74.8 million at the end of the third quarter 2026, compared to $80.8 million at the end of the fourth quarter 2025. Interest-earning deposits with other banks increased to $37.8 million at the end of the third quarter 2026, compared to $35.9 million at the end of the fourth quarter 2025 and yielded 3.82% and 4.53%, respectively. The decrease in cash and cash equivalents was primarily driven by paydowns of wholesale funds.

Previous wording

Available-for-sale debt securities were $601.8 million compared to $597.4 million at the end of the fourth quarter 2025. The increase was driven by $52.6 million in purchases offset in part by $30.2 million in paydowns and $15.2 million in sales, calls and maturities. Net unrealized losses increased to $50.4 million at quarter-end compared to $47.5 million at the end of the fourth quarter 2025 due to the interest rate environment. The total unrealized losses include $5.4 million in unrealized losses on fair value hedged municipal securities. The quarter-to-date weighted average yield of the securities portfolio was 4.06% compared to 4.03% at the end of the fourth quarter 2025. As of the second quarter 2026 and the fourth quarter 2025, the securities portfolio had an average life of 7.2 years and 7.1 years respectively, with an effective duration of 5.2 years for both periods. At the end of the second quarter 2026 all securities remain classified as available for sale.

Current wording

Available-for-sale debt securities were $581.3 million compared to $597.4 million at the end of the fourth quarter 2025. The decrease was primarily due to net unrealized losses, which increased to $82.6 million from $47.5 million at the end of the fourth quarter 2025, due to the interest rate increase during the quarter. The total unrealized losses include $9.8 million in unrealized losses on fair value hedged municipal securities. The change in available-for-sale debt securities included $83.9 million in purchases offset in part by $45.9 million in paydowns and $22.1 million in sales, calls and maturities. The quarter-to-date weighted average yield of the securities portfolio was 4.10% compared to 4.03% at the end of the fourth quarter 2025. As of the third quarter 2026 and the fourth quarter 2025, the securities portfolio had an average life of 8.0 years and 7.1 years respectively, with an effective duration of 5.5 years and 5.2 years respectively. At the end of the third quarter 2026 all securities remain classified as available for sale.

Previous wording

Federal Home Loan Bank stock increased $2.1 million to $13.4 million at the end of the second quarter 2026 compared to $11.3 million at the end of the fourth quarter 2025 primarily driven by the increase in wholesale borrowings.

Current wording

Federal Home Loan Bank stock decreased $3.3 million to $8.0 million at the end of the third quarter 2026 compared to $11.3 million at the end of the fourth quarter 2025, primarily driven by the decrease in wholesale borrowings.

Previous wording

Loans held for sale were $10.2 million in the second quarter 2026 compared to $5.3 million in the fourth quarter 2025 as we originated $47.3 million in loans held for sale and sold $42.4 million in loans during the first and second quarter 2026.

Current wording

Loans held for sale were $10.7 million in the third quarter 2026 compared to $5.3 million in the fourth quarter 2025 as we originated $84.0 million in loans held for sale and sold $81.4 million in loans during the first three quarters of 2026.

Previous wording

Total loans increased $8.3 million to $3.6 billion in the second quarter 2026. Commercial real estate loans decreased $10.0 million primarily due to $130.6 million in maturities, payoffs and paydowns and was offset in part by originations of $120.6 million. Commercial and industrial loans increased $39.5 million and included $48.5 million of originations during the first two quarters of 2026. Residential real estate loans decreased $18.5 million to $983.3 million at the end of the second quarter 2026 compared to $1.0 billion at the end of the fourth quarter 2025, primarily driven by increased prepayment activity. Consumer loans were $132.6 million at the end of the second quarter 2026 compared to $128.0 million at the end of the fourth quarter 2025 primarily driven by $10.6 million in originations during the period.

Current wording

Total loans increased $7.8 million to $3.6 billion in the third quarter 2026. Commercial real estate loans increased $12.0 million primarily due to $161.4 million in originations offset in part by $149.4 million in maturities, payoffs and paydowns. Commercial and industrial loans increased $17.9 million and included $73.7 million of originations during the first three quarters of 2026. Residential real estate loans decreased $28.1 million to $973.6 million at the end of the third quarter 2026 compared to $1.0 billion at the end of the fourth quarter 2025, primarily driven by increased prepayment activity. Consumer loans were $135.2 million at the end of the third quarter 2026 compared to $128.0 million at the end of the fourth quarter 2025 primarily driven by $20.3 million in originations during the period.

Previous wording

The allowance for credit losses (“ACL”) on loans was $32.2 million at the end of the second quarter 2026 compared to $34.1 million at the end of the fourth quarter 2025. The change in the allowance was primarily driven by a $3.3 million charge-off related to a previously disclosed non-accruing relationship that was transferred into other real estate owned in

Current wording

The allowance for credit losses (“ACL”) on loans was $31.8 million at the end of the third quarter 2026 compared to $34.1 million at the end of the fourth quarter 2025. The change in the allowance was related to a previously disclosed non-

Previous wording

the second quarter 2026. The loan was previously reserved for and the charge-offs recorded reflect the Company's best estimate of the property's fair value based on underlying appraisal and market information.

Current wording

accruing relationship that was transferred into other real estate owned in the second quarter of 2026. The loan was previously reserved for and the charge-offs recorded reflect the Company's best estimate of the property's fair value based on underlying appraisal and market information.

Previous wording

Premises and equipment increased in the first half of 2026 to $61.2 million compared to $58.2 million at the end of the fourth quarter 2025 driven by renovation projects. Other real estate owned was $8.2 million at the end of the second quarter 2026 due to the aforementioned non-accruing loan, there was no other real estate owned as of December 31, 2025. Bank owned life insurance decreased $7.5 million driven by death benefit payouts that occurred at the end of the first quarter 2026 as well as an additional death benefit that was recognized in the second quarter 2026. Other assets increased $12.1 million primarily due to a $5.2 million change in the fair value of customer loan swaps.

Current wording

Premises and equipment increased in the first nine months of 2026 to $61.4 million compared to $58.2 million at the end of the fourth quarter 2025 driven by on-going branch renovation projects. Other real estate owned was $7.1 million at the end of the third quarter 2026 due to the aforementioned non-accruing loan, there was no other real estate owned as of December 31, 2025. Bank-owned life insurance decreased $6.8 million driven by death benefit payouts that occurred at the end of the first quarter 2026, as well as an additional death benefit that was recognized in the second quarter 2026. Other assets increased $21.2 million primarily due to a $15.4 million change in the fair value of customer loan swaps.

Previous wording

Total deposits were $3.9 billion at the end of the second quarter 2026 compared to $3.8 billion at the end of the fourth quarter of 2025. The increase was driven primarily by $73.8 million in new customer non-maturity deposits. Non-interest bearing demand deposits increased $7.3 million, interest-bearing demand deposits increased $3.3 million, savings deposits remained flat at $635.3 million and money market deposits increased $17.0 million. The increase in money market deposits included $15.4 million in new accounts during 2026. Time deposits increased $5.1 million during the period primarily due to $6.5 million in new customer time deposits.

Current wording

Total deposits were $3.9 billion at the end of the third quarter 2026 compared to $3.8 billion at the end of the fourth quarter of 2025. The increase was driven primarily by $105.5 million in new customer non-maturity deposits. Non-interest bearing demand deposits increased $31.8 million, interest-bearing demand deposits increased $110.6 million, savings deposits increased to $642.9 million and money market deposits increased $24.4 million. Time deposits decreased $57.7 million during the period driven by a $59.0 million reduction in brokered deposits during the third quarter 2026.

Previous wording

The Company's book value per share was $32.80 at the end of the second quarter 2026 compared to $31.88 at the end of the fourth quarter 2025. Tangible book value per share (non-GAAP) was $23.43 at the end of the second quarter 2026, compared to $22.41 at the end of the fourth quarter 2025.

Current wording

The Company's book value per share was $31.95 at the end of the third quarter 2026 compared to $31.88 at the end of the fourth quarter 2025. Tangible book value per share (non-GAAP) was $22.61 at the end of the third quarter 2026, compared to $22.41 at the end of the fourth quarter 2025.

Previous wording

COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND JUNE 30, 2025

Current wording

COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND SEPTEMBER 30, 2025

Previous wording

Second quarter 2026 GAAP net income was $15.2 million, or $0.91 per diluted share, and adjusted earnings (Non-GAAP) was $15.4 million, or $0.92 per diluted share, compared to GAAP net income of $6.1 million, or $0.40 per diluted share, and adjusted earnings (Non-GAAP) of $10.8 million or $0.70 per diluted share in the second quarter of 2025.

Current wording

Third quarter 2026 GAAP net income was $16.1 million, or $0.96 per diluted share, and adjusted earnings (Non-GAAP) was $17.5 million, or $1.04 per diluted share, compared to GAAP net income of $8.9 million, or $0.54 per diluted share, and adjusted earnings (Non-GAAP) of $15.4 million or $0.95 per diluted share in the third quarter of 2025.

Previous wording

For the six months ended June 30, 2026, GAAP net income was $28.8 million, or $1.71 per diluted share, and adjusted earnings (Non-GAAP) was $30.2 million, or $1.79 per diluted share, compared to GAAP net income of $16.3 million, or $1.06 per diluted share, and adjusted earnings (Non-GAAP) of $21.2 million or $1.38 per diluted share for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, GAAP net income was $44.8 million, or $2.67 per diluted share, and adjusted earnings (Non-GAAP) was $48.4 million, or $2.88 per diluted share, compared to GAAP net income of $25.2 million, or $1.60 per diluted share, and adjusted earnings (Non-GAAP) of $36.6 million or $2.33 per diluted share for the nine months ended September 30, 2025.

Previous wording

Total interest and dividend income increased by 15% to $55.9 million in the second quarter 2026 compared to $48.7 million in the prior year. Yields on earning assets grew to 5.29% in the second quarter 2026 compared to 5.23% in the second quarter 2025. The increase is driven by the securities yield expansion of 20 basis points to 4.06% in the second quarter 2026 compared to 3.86% in the same period of 2025. The increase is primarily due to $115.6 million in acquired investments from the acquisition of Woodsville Guaranty Savings Bank (“Woodsville”). The loan yield increased in part due to the acquisition of $413.4 million in loans from Woodsville but also includes $48.1 million in organic growth. Residential loan yield expansion was the primary driver as the yield increased to 4.62% for the second quarter 2026 from 4.14% in the second quarter of 2025. Total loan yield growth was partially offset by a decrease in the commercial and

Current wording

Total interest and dividend income increased by 4%, or $2.5 million, to $58.4 million in the third quarter 2026 compared to $55.9 million in the third quarter 2025. Yields on earning assets grew to 5.39% in the third quarter 2026 compared to 5.36% in the third quarter 2025. The yield on available-for-sale debt securities decreased to 4.10% in the third quarter 2026 compared to 4.14% in the same period of 2025. The loan yield grew to 5.64% in the third quarter 2026 compared to 5.60% in the same period of 2025 driven by residential loan yield expansion to 4.81% for the third quarter 2026 from 4.42% in the third quarter of 2025. Total loan yield growth was partially offset by a decrease in the commercial and industrial yield to 6.11% for the third quarter 2026 from 6.45% in the third quarter 2025 driven by payoffs.

Previous wording

Total interest and dividend income increased by 16% to $111.2 million for the six months ended June 30, 2026 compared to $96.2 million in the prior year primarily driven by the same reasons noted for the quarter. Yields on earning assets grew to 5.28% for the six months ended June 30, 2026 compared to 5.19% for the same period of 2025. The yield on available-for-sale debt securities increased 22 basis points to 4.05% primarily due to the aforementioned Woodsville securities. The loan yield increased to 5.51% in the six months ended June 30, 2026 compared to 5.45% for the same period of 2025 as average loan balances grew $451.7 million year-over-year and also benefitted from $1.9 million in accretion.

Current wording

Total interest and dividend income increased by 11% to $169.5 million for the nine months ended September 30, 2026 compared to $152.1 million in the prior year primarily driven by the same reasons noted for the quarter. Yields on earning assets grew to 5.32% for the nine months ended September 30, 2026 compared to 5.23% for the same period of 2025. The

Previous wording

Total interest expense decreased $806 thousand in the second quarter 2026 compared to the second quarter 2025. Deposit costs were down $873 thousand year-over-year as the cost of interest-bearing deposits decreased to 1.88% in the second quarter 2026 from 2.28% in the same period of 2025. Borrowing costs increased $67 thousand, or 2% year-over-year, driven by the subordinated debt acquired from Woodsville.

Current wording

Total interest expense decreased $1.3 million in the third quarter 2026 compared to the third quarter 2025. Deposit costs were down $1.3 million year-over-year as the cost of interest-bearing deposits decreased to 1.87% in the third quarter 2026 from 2.12% in the same period of 2025. Borrowing costs increased $34 thousand, or 1.3%, year-over-year.

Previous wording

Total interest expense for the six months ended June 30, 2026 was $36.4 million compared to $37.3 million for the same period ended 2025 driven by a $1.5 million decrease in cost of interest-bearing deposits primarily driven by average brokered deposits which decreased $107.1 million year-over-year. Costs of borrowings increased in the first six months of 2026 to 5.33% from 4.75% in the same period of 2025.

Current wording

Total interest expense for the nine months ended September 30, 2026 was $54.0 million compared to $56.3 million for the same period ended 2025 driven by a $2.8 million decrease in cost of interest-bearing deposits primarily driven by average brokered deposits which decreased $113.3 million year-over-year. Costs of borrowings increased in the first nine months of 2026 to 5.33% from 4.56% in the same period of 2025.

Previous wording

Net interest margin for the second quarter 2026 was 3.61% compared to 3.23% for the second quarter 2025. As loan balances grew year-over-year the yield on loans expanded 4 basis points to 5.52% compared to 5.48% in the same period of 2025. Interest-bearing deposit costs decreased year-over-year to 1.88% compared to 2.28% in the same period of 2025.

Current wording

The net interest margin was 3.77% in the third quarter 2026 compared to 3.56% in the same quarter 2025. As loan balances grew year-over-year the yield on loans expanded 4 basis points to 5.64% compared to 5.60% in the same period of 2025. Interest-bearing deposit costs decreased year-over-year to 1.87% compared to 2.12% in the same period of 2025.

Previous wording

Net interest margin for the six months ended June 30, 2026 was 3.57% compared to 3.20% for the six months ended June 30, 2025. As total average loan balances grew 14%, the yield on loans grew to 5.51% for the six months ended June 30, 2026, up from 5.45% in the same period for 2025. Costs of interest-bearing deposits decreased year-over-year to 1.89% in 2026 from 2.30% in 2025. Total interest-bearing liabilities costs decreased in the first six months of 2026 to 2.16% from 2.52% in the same period of 2025.

Current wording

Net interest margin for the nine months ended September 30, 2026 was 3.64% compared to 3.32% for the nine months ended September 30, 2025. As total average loan balances grew 10%, the yield on loans grew to 5.55% for the nine months ended September 30, 2026, up from 5.48% in the same period for 2025. Costs of interest-bearing deposits decreased year-over-year to 1.88% in 2026 from 2.22% in 2025. Total interest-bearing liabilities costs decreased in the first nine months of 2026 to 2.12% from 2.41% in the same period of 2025.

Previous wording

The provision for credit losses on loans in the second quarter 2026 was $1.3 million compared to $528 thousand in the same period of 2025. The provision for losses for the six months ended June 30, 2026 was $1.6 million compared to $471 thousand in the same period of 2025. The allowance for credit losses to total loans coverage ratio for the second quarter 2026 remains well-funded and was 0.89% compared to 0.92% in the second quarter 2025.

Current wording

The provision for credit losses on loans in the third quarter 2026 was a recapture of $167 thousand compared to a $3.7 million provision in the same period of 2025. The recapture was primarily due to the full payoff of a PCD relationship that previously carried significant reserves. Net charge-offs remained low at $303 thousand in the third quarter of 2026 compared to $316 thousand in the third quarter of 2025. The allowance for credit losses to total loans coverage ratio for the third quarter 2026 remains adequately reserved and was 0.88% compared to 0.95% in the third quarter of 2025.

Previous wording

There was no provision for available-for-sale debt securities in the second quarter of 2026 and 2025 or for the six months ended June 30, 2026. For the six months ended June 30, 2025 there was a provision of $636 thousand related to one corporate debt security.

Current wording

There was no provision for available-for-sale debt securities in the third quarter of 2026 and 2025 or for the nine months ended September 30, 2026. For the nine months ended September 30, 2025 there was a provision of $636 thousand related to one corporate debt security.

Previous wording

Non-interest income for the six months ended June 30, 2026 was $22.1 million compared to $13.6 million for the same period ended 2025 driven by the loss on available-for-sale debt security of $4.9 million in 2025 and the increase in bank owned life insurance income of $2.2 million in 2026 due to the payout and recognition of death benefits during the period.

Current wording

Non-interest income for the nine months ended September 30, 2026 was $33.0 million compared to $24.1 million for the same period ended 2025 driven by the loss on available-for-sale debt securities of $4.9 million in 2025 and the increase in bank-owned life insurance income of $2.2 million in 2026 due to the payout and recognition of death benefits during the period.

Previous wording

Non-interest expenses increased $7.8 million to $59.0 million for the six months ended June 30, 2026 compared to $51.2 million in the same period in 2025. The increases were primarily due to the $4.6 million increase in salary and employee benefits due to higher full time equivalents as discussed above. Occupancy and equipment expenses increased $1.5 million due to higher maintenance contracts as well as on-going renovation projects.

Current wording

Non-interest expenses increased $6.4 million to $90.4 million for the nine months ended September 30, 2026 compared to $83.9 million in the same period in 2025. The increases were primarily due to the $5.1 million increase in salary and employee benefits due to higher full time equivalents. Occupancy and equipment expenses increased $1.8 million due to higher maintenance contracts as well as on-going renovation projects.

Previous wording

Income tax expense was $4.0 million for the second quarter 2026 compared to $1.4 million for the second quarter of 2025. Our GAAP effective tax rate for the second quarter 2026 was 20.8% and 18.5% in the second quarter 2025. Income tax expense for the six months ended June 30, 2026 was $7.6 million compared to $3.9 million in the same period in 2025. The increase for both the quarter and the six months ended were driven by lower 2025 pre-tax income due to the loss on available-for-sale debt security.

Current wording

Income tax expense was $4.3 million for the third quarter 2026 compared to $2.2 million for the third quarter of 2025. Our GAAP effective tax rate for the third quarter 2026 was 21.0% compared to 19.8% in the third quarter 2025. Income tax expense for the nine months ended September 30, 2026 was $11.9 million compared to $6.1 million in the same period in 2025. Our GAAP effective tax rate for the nine months ended September 30, 2026 and 2025 was 20.9% and 19.4% respectively.

Previous wording

As of June 30, 2026, available same-day liquidity totaled approximately $1.3 billion, including cash, borrowing capacity at FHLB and the Federal Reserve Discount Window and various lines of credit. Additional sources of liquidity include cash flows from operations, wholesale deposits, cash flow from our amortizing securities and loan portfolios. As of June 30, 2026, we had unused borrowing capacity at the FHLB of $521.9 million, unused borrowing capacity at the Reserve Bank of $105.6 million and unused lines of credit totaling $41.0 million, in addition to $104.4 million in cash.

Current wording

As of September 30, 2026, available same-day liquidity totaled approximately $1.2 billion, including cash, borrowing capacity at FHLB and the Federal Reserve Discount Window and various lines of credit. Additional sources of liquidity include cash flows from operations, wholesale deposits, cash flow from our amortizing securities and loan portfolios. As of September 30, 2026, we had a total borrowing capacity at the FHLB of $990.8 million, of which $591.1 million was unused, total borrowing capacity at the Reserve Bank of $107.1 million, all of which was unused, and unused lines of credit totaling $41.0 million, in addition to $74.8 million in cash.

Previous wording

Please refer to “Comparison of Financial Condition at June 30, 2026 and December 31, 2025- Equity” for a discussion of shareholders’ equity together with Note 7 - “Capital Ratios and Shareholders’ Equity” in the unaudited consolidated

Current wording

Please refer to “Comparison of Financial Condition at September 30, 2026 and December 31, 2025- Equity” for a discussion of shareholders’ equity together with Note 7 - “Capital Ratios and Shareholders’ Equity” in the unaudited consolidated financial statements. Additional information about regulatory capital is contained in the notes to the consolidated financial statements and in our most recent Form 10-K.

Previous wording

We expect to continue our current practice of paying quarterly cash dividends with respect to our common stock subject to our Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. We believe our quarterly dividend rate per share as approved by our Board of Directors, enables us to balance our multiple objectives of managing our business and returning a portion of our earnings to our shareholders. Historically, and a practice we intend to continue, our principal cash expenditure is the payment of dividends on our common stock, if as and when declared by our Board of Directors. Dividends were paid to our shareholders in the aggregate amount of $11.1 million and $9.7 million for the six months ended June 30, 2026 and 2025, respectively. All dividends declared and distributed by us will be in compliance with applicable state corporate law and regulatory requirements.

Current wording

notice. We believe our quarterly dividend rate per share as approved by our Board of Directors, enables us to balance our multiple objectives of managing our business and returning a portion of our earnings to our shareholders. Historically, and a practice we intend to continue, our principal cash expenditure is the payment of dividends on our common stock, if as and when declared by our Board of Directors. Dividends were paid to our shareholders in the aggregate amount of $16.9 million and $15.0 million for the nine months ended September 30, 2026 and 2025, respectively. All dividends declared and distributed by us will be in compliance with applicable state corporate law and regulatory requirements.

Previous wording

The following reconciliation table provides a more detailed analysis of these, and reconciliation for, each of non-GAAP financial measures:

Current wording

The following reconciliation table provides a more detailed analysis of these, and reconciliation for, each non-GAAP financial measure: