Central Bancompany, Inc.

The following table presents selected financials from our income statement and the performance ratios discussed below.

1 These are non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”

2 Fully-tax equivalent basis.

Key highlights for the three months ended March 31, 2026:

•Net income of $111.1 million, or$0.46 per fully diluted share, compared to $94.8 million and$0.43 for the three months ended March 31, 2025.

•ROAA of 2.20% compared to ROAA of 2.00% in the prior year quarter.

•Efficiency ratio of 46.3%; Adjusted efficiency ratio 1 of 45.7%, compared to 49.3% and 48.7% respectively in the prior year quarter.

Net Interest Income and Net Interest Margin

The following table summarizes the distribution of average balances, average yields and costs (on an annualized basis for interim periods), and changes in net interest income on an FTE basis. Average balances are daily average balances and include nonaccrual loans. The table below includes the effect of deferred fees and expenses, discounts and premiums, as well as purchase accounting adjustments that are amortized or accreted to interest income or expense.

1 Interest income and yields are reported on an FTE basis, using a blended federal and state effective marginal tax rate of 23.84%for all periods. The tax-equivalent interest income and yields give effect to the tax-exempt interest income net of the disallowance of interest expense, for federal income tax purposes related to certain tax-free assets.

2 Loan balances include mortgage loans held for sale and nonaccrual loans of $51.4 million and$48.8 million as of March 31, 2026 and 2025, respectively.

Net interest income totaled $208.6 million for the three months ended March 31, 2026, an increase of$19.3 million, or 10.2%, compared to$189.3 million for the three months ended March 31, 2025. On an FTE basis, net interest income (FTE) (non-GAAP)increased to$210.4 million from$190.9 million, an increase of 10.3%. Our net interest margin increased 13 basis points to 4.32% for the quarter compared to 2025, driven by solid underlying average earning asset growth of $1.3 billion, or 7%, resulting from growing deposits, earnings retention and our IPO. These funds have largely been invested in securities and short-term earning assets. Our net interest margin (FTE) (non-GAAP)increased to 4.36% in the same three months of 2026, compared to 4.23% for the same period in 2025.

Total interest income was $258.1 million for the three months ended March 31, 2026, an increase of$17.8 million, or 7.4%, compared to$240.2 million for thesame period in 2025. On an FTE basis, total interest income (FTE) (non-GAAP) was$259.9 million for the quarter, an increase of$18.1 million, or 7.5%, compared to $241.8 million in the same quarter of the prior year. Theincrease wasprimarily due tothe repositioning of theinvestment portfolio, from lower-yielding bonds to higher-yielding investments at higher market rates, the investment of IPOproceeds, and the growth in deposits.

Interest expense decreased $1.5 million, or 2.9%, to$49.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Thedecrease was driven by reduced costs on time deposits, federal funds purchased, and customer repurchase agreements, as rates began tolower after rate cuts by the Federal Reserve began in 2024, partially offset by increased volume on savings and interest bearing deposits.

The table below identifies changes related to volumes (average balances) and rates on our net interest income during the period shown, with respect to (i) changes in volume (change in volume times old rate), (ii) changes in rates (change in rate times old volume) and (iii) changes in rate / volume (change in rate times the change in volume, including difference in the number of days). Any change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate.

Provision for Credit Losses

The provision for credit losses, including provision for off-balance sheet credit exposures, was $3.1 million for the three months ended March 31, 2026, an increase of$0.2 million, or 7.7%, compared to$2.9 millionfor the three months ended March 31, 2025. Theincrease compared to prior-year quarter primarily reflected higher average loan balances during thefirst quarter of 2026, whereas loan balances declined during thethree months ended March 31, 2025, in addition to the impact of portfolio mix and economic assumptions incorporated into the allowance for credit losses methodology.

Noninterest Income

The following table presents noninterest income for the three months ended March 31, 2026 and 2025.

Noninterest income was $65.1 million for the three months ended March 31, 2026, an increase of $6.3 million, or 10.7%, compared to $58.8 million for the three months ended March 31, 2025. The increase was primarily due to a 14.8%, or$1.8 million, increase in fees for fiduciary services along with growth in brokerage services of 18.2%, or$1.2 million. Additionally, in the current quarter, a $1.7 million gain was recognized in other income from the liquidation of the consumer lease portfolio. Significant components of theincrease in noninterest income are described in further detail below.

1 This is a non-GAAP financial measure we believe is helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”

Brokerage services and fees for fiduciary services. Brokerage services and fees for fiduciary services relate to our wealth management services and comprise of fees earned for management of trust assets and investment services. Brokerage services increased $1.2 million, or 18.2%, to $7.9 million for the first three months of 2026, compared to the same period in 2025. The increase primarily reflected higher average assets under advice driven by continued strong net new AUA, partially offset by a reduction from market movement during the quarter. Fees for fiduciary services increased 14.8%, or$1.8 million, to$14.3 million for the same period.

Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income increased $1.7 million, to $2.5 million for the first three months of 2026, compared to the same period in 2025. The increase was driven by a $1.7 million gain that was recognized from the liquidation of the consumer lease portfolio in the first three months of 2026.

Noninterest Expense

The following table presents the major componentsof our noninterest expense for the three months ended March 31, 2026 and 2025:

Total noninterest expense was $126.6 million for the three months ended March 31, 2026, an increase of $4.4 million, or 3.6%, compared to $122.3 million for the three months ended March 31, 2025. The increase was primarily due to increases in salaries and employee benefits, legal and professional fees, and bankcard processing, rewards and related costs, partially offset by a reduction in other expenses.

Salaries and Employee Benefits. These expenses were $76.0 million for the first three months of 2026, an increase of $4.8 million, or 6.7%, compared to $71.2 million for the same period in 2025. This increase was primarily the result of higher performance based compensation and regular merit increases. Full-time equivalents were flat to the prior year quarter.

Legal and Professional Fees. Legal and professional fees were $6.1 million for the first three months of 2026, an increase of $1.2 million, or 24.3%, compared to $4.9 million for the same period in 2025, primarily reflecting higher costs related to technology improvement initiatives and additional costs associated with being a public company.

Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs increased $0.7 million, or 10.4% for the first three months of 2026, compared to the same period in 2025, primarily reflecting $0.4 million in conversion-related refunds received in the first quarter of 2025 that did not recur in 2026.

Other Expenses. Other expenses decreased $2.2 million, to $14.1 million for the first three months of 2026, compared to the same period in 2025. Thedecrease was primarily due to $3.1 million higher residual loss expense in 2025 on the leased car portfolio as a resultof declining fair market values. This was partially offset by increases in various other expense categories.

Income Taxes

The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities in which we do business. Income tax expense was $32.9 million for the three months ended March 31, 2026, representing an effective tax rate of 22.8%, compared to $28.1 million and an effective tax rate of 22.9%, for the same period in 2025. The increase in income tax expense of $4.8 million, or 17.0%, was driven by higher pre-tax income year over year.

Discussion and Analysis of Business Segments

The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 12, Business Segment Reporting," to our consolidated financial statements in this Quarterly Report on Form 10-Q.

Consumer Banking Operating Results

For the three months ended March 31, 2026, Consumer Banking net income increased $4.7 million, or 14.9%, to $36.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 8.1% and a $1.7 million gain on finalization of the consumer lease portfolio sale, partially offset by increased noninterest expenses of 5.2%.

Commercial Banking Operating Results

For the three months ended March 31, 2026, Commercial Banking net income increased $5.3 million, or 9.0%, to $63.9 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 6.4% driven by an increase in the FTP paid on deposits.

Wealth Management Operating Results

For the three months ended March 31, 2026, Wealth Management net income increased $1.5 million, or 33.8%, to $6.0 million compared to the same period in 2025, as assets under advice increased $2.5 billion. The 18.2% rise in total AUA was driven by continued strong net new AUA, partially offset by a reduction from market movement.

Financial Condition and Risk Management

The following discussion provides an overview of the Company’s financial condition, asset quality, liquidity position, and regulatory capital as of March 31, 2026, with comparisons to the prior year quarter where relevant. This analysis highlights the key drivers of balance sheet changes, evaluates trends in credit performance, and outlines the strength of the Company’s liquidity and capital resources. Together, these measures reflect management’s ongoing focus on prudent risk management, disciplined balance sheet strategy, and maintaining a strong financial foundation to support continued operations and future growth.

As of March 31, 2026:

•Total assets remained stable with a decrease of 1.4% from December 31, 2025.

•Total loans held for investment as of March 31, 2026 totaled $11.5 billion, an increase of $98 million, or 0.9%, compared to $11.4 billion as of December 31, 2025. The increase was primarily due to increases in commercial real estate, and residential mortgage loans, partially offset by a decline in other consumer loans.

•Investment securities grew $369 million, an increase of 5.7% from December 31, 2025. As of March 31, 2026, 99.0% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.3% of our total portfolio.

•Total deposits declined by $397.2 million, a decrease of 2.5% from December 31, 2025. The decrease was primarily due to the outflow of seasonal deposits gathered at year-end.

•Total stockholders' equity grew by $14 million, an increase of 0.4% from December 31, 2025.

The Company manages risk through an enterprise risk management framework that establishes risk appetite, governance structures, and monitoring processes across key risk categories, including credit, market, liquidity, operational, and technology risks. Risk is overseen by the Board of Directors and its committees, with management responsible for identifying, measuring, monitoring, and controlling exposures through established limits, key risk indicators, and escalation protocols.

Credit Risk Management

Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We seek to mitigate credit risk in our loan and lease portfolio by following clearly defined underwriting criteria and account management standards set by management. See "Note 3, Loans and Allowance for Credit Losses," to our consolidated financial statements in this Quarterly Report on Form 10-Q.

Our objective is to maintain a high degree of credit quality, support the customers and communities we serve, and achieve our objectives for profitability and liquidity. Maintaining strong credit quality is essential to the viability of our business model. Through our business activities we recognize and seek to mitigate three primary types of credit risk: default risk, concentration risk and systemic risk. Managing credit risk is a continuous, enterprise-wide initiative that starts with our local market bankers and leaders as our first line of defense. We leverage the strength of our bankers across markets to manage and limit risk taking complemented by our comprehensive credit policy and underwriting standards. To help ensure we balance market-level support while maintaining a diversified portfolio, we impose market-level approval limits and industry, asset and geographic limits.

To manage and enforce our portfolio metrics and diversification targets our credit committee meets periodically to evaluate credit risk migration, new business activities, stress-test activities and credit policy changes and approve or modify market lending authorities. Our internal loan review department, our third line of defense, serves as an independent function to evaluate effective underwriting and application of credit policy in both origination and portfolio management.

Loan and Lease Portfolio

We offer a broad range of lending products with a focus on commercial real estate, construction and development, commercial and industrial, multi-family and one-to-four-family residential loans in our Primary Markets in Missouri, Kansas, Oklahoma and Colorado. We deliver these products through a local, relationship-based delivery model emphasizing market-level credit authority.

The following table presents our loan and lease portfolio by category as of March 31, 2026 and December 31, 2025:

Credit quality across the loan portfolio remains strong, supported by consistent adherence to conservative underwriting standards. Portfolio‑level metrics across all loan classes continue to align with these established standards, underscoring the stability and resilience of the credit profile. Total loans held for investment increased $98 million, or 0.9%, to $12 billion as of March 31, 2026. The increase was primarily due to an increase in commercial real estate and residential real estate, partially offset by a decline in the consumer loan portfolio.

Commercial loans totaled $7 billion at March 31, 2026, representing an increase of $41 million, or 0.6%, compared to December 31, 2025. Growth during the quarter was primarily attributable to increases in both owner‑occupied and non‑owner‑occupied commercial real estate loan balances, partially offset by expected reductions in construction loan balances and a modest decline in commercial, financial, and agricultural loans. Overall credit quality within the commercial loan portfolio remained strong during the first quarter of 2026. While commercial loan delinquencies increased during the quarter, the change was primarily related to the migration of a limited number of larger commercial relationships to non‑performing status.

Residential and consumer loans totaled $4 billion at March 31, 2026, representing an increase of $56 million, or 1.3%, from December 31, 2025. During the quarter, indirect consumer lending balances continued to decline and the consumer leasing portfolio was sold. These changes reflect the Company’s ongoing, deliberate rebalancing of its consumer loan portfolio.

The residential mortgage portfolio continues to demonstrate strong credit fundamentals, reflected in an average loan‑to‑value ratio of 59%, an average debt‑to‑income ratio of 38.9%, and an average FICO score of 727. Residential mortgage loans accounted for 30% of total loans held for investment as of March 31, 2026, an increase of 3.1%, or $102 million, from December 31, 2025. The increase was primarily due to continued growth in adjustable-rate mortgages, along with growth in residential construction and development loans. The mortgage portfolio remains well diversified with originations during the quarter averaging $343 thousand per loan.

Asset Quality

The following table presents selected financials from our consolidated balance sheet and the asset quality ratios discussed below.

Loans are analyzed for risk rating updates as part of the annual credit review process. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenants or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated “Watch,” “Substandard” or “Nonaccrual” under our internal risk grading system (as described below) may be subject to more frequent review and monitoring processes. In addition to the regular monitoring performed by the market lending personnel and credit committees, loans are subject to review by our internal loan review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

Nonperforming Loans and Assets.

Our non-performing assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such that payment of full principal and interest is not expected, or (ii) principal or interest has been in default for a period of 90 days or more and the asset is not both well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled.

The following table presents our nonperforming loans and assets for the dates indicated:

Nonaccrual loans totaled $51.4 million as of March 31, 2026, an increase of $6.7 million, or 15.0%, compared to $44.7 million as of December 31, 2025. The increase was primarily driven by an increase in commercial, financial, and agricultural. The increase was primarily driven by one relationship migrating to nonaccrual during the quarter.

Allowance for Credit Losses

Allowance for credit losses reflects management’s estimate of current expected loss within the loan and lease portfolio. The computation of the allowance for credit losses includes elements of judgment and high levels of subjectivity. See “Part II, Item 7. Management's Discussion and Analysis of Fina ncial Condition and Results of Operations—Critical Accounting Policies and Estimates—Allowance for Credit Losses on Loans,”, inthis Quarterly Report on Form 10-Q

We measure the allowance for credit losses using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affectthe collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type and collateral type. Loans that do not share similar risk characteristics, primarily large loans on nonaccrual status are evaluated on an individual basis.

In the three months ended March 31, 2026, we recorded net charge-offs of $2.9 million, compared to net charge-offs of $3.5 million in the three months ended March 31, 2025, a decrease of $0.5 million, or 15.7%. Net charge-offs as a percentage of average total loans were 0.10% in the three months ended March 31, 2026, compared to 0.12% from the same period in 2025.

At March 31, 2026, theallowance for credit losses was $149.9 million, or 1.30% of our total loan and leases portfolio, compared with $153.7 million, or 1.31%, in the same period in 2025.

The following tables present theallocation of the allowance for credit losses:

Management will continue to evaluate the loan portfolio and assess economic conditions in order to determine future allowance levels and the amount of credit loss provision. We review the appropriateness of our allowance for credit losses on a quarterly basis. While we use the best information available to make evaluations, future adjustments to the allowance may become necessary if conditions change substantially from the conditions that we used in previous evaluations.

Market Risk

Interest Rate Risk

Interest rate risk is one of the most significant risks faced by the Company as one of our primary sources of earnings is net interest income, the difference between interest income earned on interest-earning assets such as loans and securities and interest expense paid on interest-bearing liabilities such as deposits and borrowings.

The Company’s Asset Liability Management Committee ("ALCO"), operating under authority granted by the Board of Directors, is responsible for measuring, monitoring, and managing interest rate risk to limit earnings volatility and protect capital and liquidity.

Investment Securities

As part of our broader risk management framework, the investment portfolio serves as a key tool for balancing interest rate exposure, preserving capital, and ensuring adequate liquidity under a range of market conditions. Ongoing monitoring of portfolio composition, valuation trends, and duration sensitivity allows us to assess how shifts in the rate environment or market dynamics may influence both earnings and economic value.

As of March 31, 2026, the amortized cost of our AFS and HTM investment portfolios totaled $6.8 billion, an increase of $419.1 million, or 6.5% versus December 31, 2025. As of the same date, the fair value of our AFS and HTM investment portfolios totaled $6.7 billion, an increase of $368.9 million, or 5.8% versus December 31, 2025.

During the first quarter of 2026, the Company maintained average balances of approximately$1.5 billion in short‑term interest‑earning assets held at the Federal Reserve. Early in the quarter, management began redeploying a portion of these balances into the investment securities portfolio as part of its ongoing balance sheet and interest rate risk management strategy. Management initially approached investment activity conservatively due to the interest rate environment early in the quarter, and increased the pace of purchases as market yields became more favorable later in the quarter and into April. Securities purchased consisted primarily of U.S. Treasury, agency CMBS, and RMBS securities with durations generally ranging from approximately 3.0 to 4.5 years and were intended to reduce asset sensitivity and enhance the stability of interest income.

The average tax-equivalent yield at March 31, 2026 was 4.02%, a decreaseof 0.02 percentage points compared to December 31, 2025. Gross unrealized gains in our investment securities portfolio were $24.1 million and $57.2 million as of March 31, 2026 and December 31, 2025, respectively. Gross unrealized losses in our investment securities portfolio were $121.6 million and $104.6 million as of March 31, 2026 and December 31, 2025, respectively. The change in unrealized gains and losses in our investment securities portfolio was due primarily to higher market interest rates during the first three months of 2026, which adversely impacted the fair value of longer duration securities.

As of March 31, 2026, approximately 99.0% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.3% of our total portfolio. As of the same date, the portfolio’s composition was 37% agency residential mortgage-backed securities (“RMBS”), 42% agency commercial mortgage-backed securities (“CMBS”), and 16% Treasuries, with the balance in the Small Business Administration (“SBA”), municipal, corporate and other securities.

A primary risk of holding agency RMBS comes from the variability in principal cashflows that may occur as interest rates change. In general, when interest rates rise, the prepayment of principal slows down, extending the amount of time it takes to recover and reinvest that principal. In contrast, when interest rates fall, the prepayment of principal generally increases, shortening the amount it takes to recover and reinvest that principal. We evaluate this risk through pre-purchase modeling of potential cashflows as well as continuous modeling throughout the life of the securities.

As of March 31, 2026, our best estimate of the duration of our $2.5 billion residential mortgage-backed securities portfolio held in available-for-sale was 3.3 years. As of March 31, 2026, management estimates the effective duration extends by 0.7 years assuming an immediate 200 basis point upward shock and contracts by 0.8 years assuming an immediate 200 basis point downward shock. As of the same date, our best estimate of the duration of the total investment portfolio excluding equity securities was 2.7 years. Management estimates the effective duration extends by 0.2 years assuming an immediate 200 basis point upward shock and contracts by 0.3 years assuming an immediate 200 basis point downward shock.

All securities not issued or guaranteed by the U.S. government, its agencies, or sponsored enterprises are subject to a quarterly review to test for impairment. This process is intended to adequately test for a range of credit and loss assumptions and does not rely primarily on credit ratings. This review was performed as of March 31, 2026 and December 31, 2025 and revealed no matters that would warrant impairment and result in an allowance for credit losses. The Company determined that all unrealized losses are primarily attributable to changes in interest rates and current market conditions.

During the first three months of 2026, there was no sale of common and preferred stock. $0.1 million in net gains were recorded on common or preferred stock in the first three months of 2025.

We utilize an asset/liability simulation model to evaluate the sensitivity of net interest income (short-term risk) and economic value of equity (“EVE”) (long-term risk) to changes in interest rates under various hypothetical scenarios. EVE represents the estimated present value of assets less liabilities at a point in time. Changes in EVE indicate the potential impact on the long-term earnings capacity of the balance sheet assuming rate changes remain in effect.

We monitor and stress test key modeling assumptions to assess their impact on results and identify drivers of changes in the Company’s interest rate risk profile. The table below presents the estimated impact on net interest income and EVE from immediate parallel changes in interest rates.

The values in the table above are hypothetical and do not reflect potential management actions that could mitigate the effects of interest rate changes, including changes in pricing, balance sheet mix, or funding strategies. Actual results may differ due to variations in the timing and magnitude of interest rate movements, non-parallel yield curve changes, deposit behavior, loan prepayment speeds, or changes in asset and liability composition or growth. The simulations assume no balance sheet growth or additional rate changes beyond the initial shock and are intended to indicate sensitivity to interest rate changes rather than predict actual results. For further discussion of the Company’s interest rate risk, see the Interest Rate Risk section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2025 Annual Report on Form 10-K.

Liquidity Risk

Bank Liquidity

The objective of our liquidity management strategy is to ensure the availability of cash sufficient to fund our operations and meet present and future financial obligations at a reasonable cost. We consider the effective and prudent management of liquidity to be fundamental to our health and strength.

The Company’s ALCO has been authorized by the Board to oversee our liquidity risk to confirm that our activities comply with our funds management policy, which specifies overall objectives, metrics, limits, guidelines, reporting requirements and our contingency funding plan, which includes requirements for liquidity stress testing. The ALCO receives regular comprehensive reporting that includes information describing current levels vs. guidelines and limits for a broad set of liquidity metrics, loan and deposit trends, readily available liquidity measures, explanatory commentary relating to changes in our liquidity position and emerging risk trends and, as appropriate, recommended remedial strategies.

Our objective is to maintain prudent levels of current and contingent liquidity from stable sources that can be accessed in a timely manner at a reasonable cost, without significant adverse consequences. We seek to accomplish this mission by funding loans primarily with stable deposits, controlling dependence on wholesale funding, and by maintaining ample readily available liquidity. While our primary source of long-term, stable, and lower-cost funding is deposits, additional sources of funding include, but are not limited to, customer repurchase agreements, federal funds purchased from correspondent banks, unencumbered investment securities, and wholesale funding sources such as FHLB borrowings, dealer repurchase agreements, and wholesale/brokered deposits.

As of March 31, 2026, we had approximately $7.0 billion in readily available liquidity compared to $6.7 billion as of December 31, 2025.

The following table presents selected financials from our consolidated balance sheet and liquidity ratios discussed below.

Deposits

Deposits are our primary source of liquidity, as well as provides the biggest source of liquidity needs. Deposits are gathered primarily from our full-service branch locations, as well as online, mobile and ATM deposits. Central Bank offers a variety of deposit products including noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and certificates of deposit. The bank also utilizes the IntraFi network which allows our depositors to receive FDIC insurance on amounts greater than $250,000. Deposits larger than this threshold are broken into smaller amounts and placed in the network of other IntraFi institutions to ensure FDIC insurance covers the entire deposit.

The following tables sets forth the distribution of deposit balances as of March 31, 2026 and December 31, 2025:

Total deposit ending balances as of March 31, 2026 were $15.5 billion, a decrease of $397.2 million, or 2.5%, compared to $15.9 billion as of December 31, 2025. The decrease was due to the outflow of seasonal public funds deposits.

FDIC deposit insurance covers $250 thousand per depositor, per FDIC-insured bank, for each account ownership category. Our total estimated uninsured deposits were $6.4 billion and$6.9 billion as of March 31, 2026 and December 31, 2025, respectively.

Federal Funds Purchased and Customer Repurchase Agreements

Federal funds purchased and customer repurchase agreements totaled $1.1 billion and $1.0 billion at March 31, 2026 and December 31, 2025, respectively, which included customer repurchase agreements of $944.5 million and $945.8 million at March 31, 2026 and December 31, 2025, respectively. These are short-term borrowings that generally have a one-day maturity. The $1.3 million, or 0.1%, decrease in the first three months of 2026 was due to the normal course of business. Federal funds purchased increased $56.4 million, or 85.4%, in the first three months of 2026.

Off-Balance Sheet Arrangements

In the normal course of business, in order to meet the needs of our customers, we are subject to off-balance sheet risk which could potentially impact our financial position. These off-balance sheet arrangements include commitments to fund loans and standby letters of credit. The level of outstanding loan commitments may fluctuate based on macroeconomic conditions and customer demand, and changes in these factors could affect our consolidated balance sheets and liquidity position. See Note 9, “Commitments, Contingencies, and Guarantees” to our consolidated financial statements in this Quarterly Report on Form 10-Q for additional information.

Holding Company Liquidity

The Company is an independent entity distinct from the Bank and is therefore responsible for managing its own liquidity. Its primary source of funding comes from dividends paid by the Bank. However, there are statutory and regulatory restrictions that limit the Bank’s ability to distribute dividends to the Company.

The Bank may not declare dividends in any calendar year in an amount that would exceed its accumulated retained earnings after giving effect to any unrecognized losses and bad debts without the prior approval of the banking regulators. In addition, dividends paid by the Bank to the Company would be prohibited if they would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the three months ended March 31, 2026, the Bank paid $100 million in dividends to the Company. As of March 31, 2026, the Bank had approximately $59 million of retained earnings that could be upstreamed to the Company through dividends without prior approval from the Federal Reserve. These earnings remain at the Bank level and are included in regulatory capital.

The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, taxes, and dividends to stockholders. The Company’s liquidity totaled $2.0 billion as of March 31, 2026, consisting primarily of a $1.0 billion loan to the Bank and $941 million in cash and cash equivalents. The Company’s liquidity totaled $1.9 billion as of December 31, 2025, consisting of a $1.0 billion loan to the Bank, and $897 million in cash and cash equivalents.

The Company’s operating expenses totaled$3.1 million for the three months ended March 31, 2026. Dividends paid to stockholders totaled$28.9 million and the Company repurchased $31.6 million of common stock during the first three months of 2026.

Operational Risk

Operational risk refers to the risk arising from inadequate or failed internal processes or systems, the misconduct or errors of people or adverse external events, as well as risks related to compliance with laws and regulations, and exposure to legal matters. We seek to mitigate operational risks by expanding and maintaining an experienced operations team to meet customer and company demands; providing employees with relevant job-specific training; working with our vendors to use antifraud protections; establishing security procedures for our clients; employing business continuity planning and testing designed to ensure the continued operation of core functions in the event of a business disruption; and engaging in periodic independent audits of our operations and operating controls. We also seek to mitigate operational risks related to misconduct by employees or contractors by implementing internal controls, including dual authorization for monetary transactions, conducting background and credit checks for new hires, screening contractors and third parties providing critical services using a vendor management process, and offering whistleblower protections to our employees to encourage the reporting of misconduct.

Our operations are dependent on the secure and reliable functioning of our information systems and those of third-party service providers. As a result, cybersecurity threats and fraud-related risks represent an ongoing area of focus for management, particularly as the use of digital platforms and emerging technologies continues to evolve. We maintain a risk-based cybersecurity and fraud risk management program that includes preventative and detective controls, ongoing monitoring, and response protocols designed to safeguard systems and customer information and support business continuity. These risks are considered within our broader risk management framework and are monitored as part of our ongoing assessment of operational and technology-related risks that could impact our financial condition and results of operations. We continue to monitor evolving cybersecurity and fraud risks, including those related to digital activity and artificial intelligence, which did not materially impact results this quarter.

Capital

Our capital management strategy is designed to ensure that we have sufficient capital to support balance sheet growth while also maintaining sufficient reserves to absorb unexpected losses or write-downs that are risks inherent to the business of banking. We aim to strike a balance between maintaining higher capital levels to address unforeseen risks and achieving a reasonable return on the capital invested by our shareholders.

The Bank is required to meet regulatory capital standards set by federal banking authorities. If the Bank fails to meet the minimum capital requirements, it could trigger mandatory actions, and possibly additional discretionary measures, by the state and federal regulators, which may have a significant impact on the Bank’s financial position. The Bank must comply with specific capital guidelines under the capital adequacy rules and the prompt corrective action framework, which involve quantitative measures based on the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting rules. Additionally, regulators assess the Bank’s capital levels and classifications based on qualitative factors such as risk weightings, the components of capital, and other items.

The prompt corrective action (“PCA”) framework is a regulatory tool used to monitor and manage the capital levels of banks. It is designed to maintain the stability and soundness of financial institutions, particularly banks, by requiring regulatory intervention when a bank’s capital falls below certain thresholds. The primary goal of PCA is to address financial distress early, before it results in more severe consequences. These regulations, enforced by federal banking agencies, classify banks based on their capital adequacy and impose escalating supervisory actions as a bank’s capital position deteriorates.

PCA regulations mandate that federal regulators take action when a bank’s capital falls below the required thresholds. This can involve measures such as restrictions on paying dividends or bonuses, restrictions on asset growth or expansion, enhanced monitoring and reporting requirements, required capital restoration plans, possible forced mergers or liquidation in extreme cases.

At each of March 31, 2026 and December 31, 2025 the Company’s capital ratios exceededthe regulatory requirements and the Bank’s capital ratios exceeded the threshold for “well capitalized” status. We maintain excess capital, in part, to provide ourselves with flexibility when considering potential acquisition opportunities. Actual and required capital ratios were:

As of March 31, 2026, we had no material contractual commitments for capital expenditures. However, the Company is currently progressing through its Core Modernization initiative, which is expected to result in capital expenditures as project phases are executed. These expenditures are expected to be funded through operating cash flows, and the Company does not expect the initiative to have a material adverse impact on its liquidity or capital position.

Critical Accounting Policies and Estimates

Our consolidated financial statements were prepared in accordance with GAAP and follow general practices within the industry in which we operate. Application of GAAP requires management to make certain estimates and judgments which affect the amounts reported in the consolidated financial statements. Critical accounting policies are those we believe are most important to the portrayal of our consolidated financial statements and require management to make estimates and judgments which are inherently complex, difficult, uncertain and can be subject to significant change over time. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, adjustments to accounting estimates may be required.

The estimates and judgments that management believes have the most effect on the Company’s reported financial position and results of operations are set forth in “Note 1 – Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to the Company's critical accounting policies as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Allowance for Credit Losses on Loans

The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flow over the contractual term of the loans. An allowance will be created upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. The Company maintains a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest.

The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type, and expected credit loss patterns. The Company maintains a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses includes significant assumptions that are uncertain and reasonably likely to have a material impact, the most significant of which are loan loss rates and prepayment speeds. Assumptions are updated based on actual performance on an annual basis. We utilize a consensus macroeconomic forecast which relies on underlying statistical models to incorporate the economic impact into each loan portfolio. Management performs a qualitative analysis considering necessary adjustments based on the potential risks inherent in the macroeconomic forecast and impacts from loan portfolio changes, including concentrations, staffing, asset quality, and policy changes. Model validations are performed to provide an independent assessment of the framework and the model’s use in producing reasonable and supportable estimates. See Note 3, “Loans and Allowance for Credit Losses” to our consolidated financial statements contained elsewhere in this Quarterly Report.

Recent Accounting Pronouncements

There have been no material changes in recently issued accounting standards from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Non-GAAP Financial Measures Reconciliations

We provide these measures to supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook.

However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP.

We disclose net interest income and related ratios and analysis on a FTE basis, which may be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis. We report interest income, net interest income and net interest margin on an FTE basis using a blended federal and state effective marginal tax rate of 23.84% for the periods presented. The tax equivalent basis gives effect to the tax-exempt interest income, net of the disallowance of interest income, for federal income tax purposes related to certain tax-free assets. We believe these measures enhance comparability of net interest income arising from taxable and tax-exempt sources.

We evaluate our profitability and performance based on adjusted net income, adjusted total revenue, adjusted noninterest income, adjusted fee income and adjusted return on average total assets. We adjust each of these measures to exclude the loss on the expected sale of the consumer loan portfolio in one of our markets and adjustments that resulted from certain investment portfolio repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this allows investors to assess our net income, total revenue and noninterest income exclusive of the impact of changes outside the ordinary course of business. Similarly, we evaluate our operational efficiency based on tangible noninterest expense and our adjusted efficiency ratio, which excludes the effect of amortization of intangibles (a non-cash expense item) as well as the exclusions mentioned previously in this paragraph, and includes the tax benefit associated with our tax-advantaged loans.

We evaluate our financial condition based on the ratios of our tangible common equity to our tangible assets, tangible book value per share, return and adjusted return on average common equity, and return and adjusted return on average tangible common equity. Our calculation of these ratios allows readers to assess our stockholder’s equity, exclusive of the effect of our goodwill and other intangible assets.

Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this filing.