CHAIN BRIDGE BANCORP INC

Previous wording

We offer a broad range of commercial and personal banking services, including deposit accounts, multiple types of loan products, trusts administration, wealth management, and asset custody.

Current wording

We offer a broad range of commercial and personal banking services, including deposit accounts, multiple types of loan products, trust administration, wealth management, and asset custody.

Previous wording

Highlights of our results of operations and financial condition as of and for the three months ended March 31, 2026 are provided below.

Current wording

Highlights of our results of operations and financial condition as of and for the six months ended June 30, 2026 are provided below.

Previous wording

•Consolidated net income was $7.1 million for the three months ended March 31, 2026, compared to $5.6 million for the three months ended March 31, 2025. Earnings per share for the three months ended March 31, 2026 was $1.08, compared to $0.85 for the three months ended March 31, 2025.

Current wording

•Consolidated net income was $16.6 million for the six months ended June 30, 2026, compared to $10.2 million for the six months ended June 30, 2025. Earnings per share for the six months ended June 30, 2026 was $2.53, compared to $1.55 for the six months ended June 30, 2025.

Previous wording

•Net interest income, before recapture of credit losses, was $14.9 million for the three months ended March 31, 2026, compared to $13.8 million for the three months ended March 31, 2025. Net interest income, after recapture of credit losses, was $15.3 million for the three months ended March 31, 2026, compared to $13.9 million for the three months ended March 31, 2025.

Current wording

•Net interest income, before recapture of credit losses, was $32.0 million for the six months ended June 30, 2026, compared to $25.6 million for the six months ended June 30, 2025. Net interest income, after recapture of credit losses, was $32.4 million for the six months ended June 30, 2026, compared to $26.0 million for the six months ended June 30, 2025.

Previous wording

•Return on average assets for the three months ended March 31, 2026 was 1.59%, compared to 1.43% for the three months ended March 31, 2025.

Current wording

•Return on average assets for the six months ended June 30, 2026 was 1.75%, compared to 1.37% for the six months ended June 30, 2025.

Previous wording

5 Return on average RWA is calculated as net income divided by average RWA. Average RWA are calculated using the last two quarter ends.

Current wording

4 Return on average RWA is calculated as net income divided by average RWA. Average RWA are calculated using the last three quarter ends.

Previous wording

•Total assets were $1.9 billion as of March 31, 2026, compared to $1.8 billion as of December 31, 2025.

Current wording

•Total assets were $2.2 billion as of June 30, 2026, compared to $1.8 billion as of December 31, 2025.

Previous wording

•Total deposits were $1.7 billion as of March 31, 2026, compared to $1.6 billion as of December 31, 2025. Excluded from these totals are One-Way Sell® deposits, which are sold to the ICS® network. These One-Way Sell® deposits amounted to $595.0 million as of March 31, 2026, compared to $359.9 million as of December 31, 2025.

Current wording

•Total deposits were $2.0 billion as of June 30, 2026, compared to $1.6 billion as of December 31, 2025. Excluded from these totals are One-Way Sell® deposits, which are sold to the ICS® network. These One-Way Sell® deposits amounted to $668.0 million as of June 30, 2026, compared to $359.9 million as of December 31, 2025.

Previous wording

•Cash balances held at the Federal Reserve were $603.6 million as of March 31, 2026, compared to $580.9 million as of December 31, 2025.

Current wording

•Cash balances held at the Federal Reserve were $812.7 million as of June 30, 2026, compared to $580.9 million as of December 31, 2025.

Previous wording

•As of March 31, 2026, the total debt securities portfolio balance was $1.0 billion, compared to $865.3 million as of December 31, 2025.

Current wording

•As of June 30, 2026, the total debt securities portfolio balance was $1.1 billion, compared to $865.3 million as of December 31, 2025.

Previous wording

•Book value per share was $26.65 as of March 31, 2026, compared to $25.79 as of December 31, 2025.

Current wording

•Book value per share was $27.99 as of June 30, 2026, compared to $25.79 as of December 31, 2025.

Previous wording

•As of March 31, 2026, the Company had a total risk-based capital ratio of 48.65% and a tier 1 risk-based capital ratio of 47.63%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 47.14% and a tier 1 risk-based capital ratio of 46.12%.

Current wording

•As of June 30, 2026, the Company had a total risk-based capital ratio of 50.45% and a tier 1 risk-based capital ratio of 49.46%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 49.09% and a tier 1 risk-based capital ratio of 48.10%.

Previous wording

•As of March 31, 2026, our liquidity ratio was 92.73%, compared to 91.86% as of December 31, 2025.

Current wording

•As of June 30, 2026, our liquidity ratio was 94.03%, compared to 91.86% as of December 31, 2025.

Previous wording

During the first quarter of 2025, the Company experienced a material increase in deposits from certain political organization clients, primarily attributable to a post-election surge in deposits following the November 2024 federal elections. At March 31, 2025, three political organization accounts each held more than 5% of total consolidated deposits. In aggregate, those three accounts totaled $472.0 million and represented 30.1% of consolidated total deposits.

Current wording

During the first quarter of 2025, the Company experienced a material increase in deposits from certain political organization clients, primarily attributable to a post-election surge in deposits following the November 2024 federal elections. Subsequent outflows during the second quarter of 2025 related to this post-election surge. At June 30, 2025, two political organization accounts each held more than 5% of total consolidated deposits. In aggregate, those two accounts totaled $136.2 million and represented 10.6% of consolidated total deposits.

Previous wording

March 31, 2026, there were three clients with an individual deposit balance exceeding 5.0% of total deposits. The total deposit balance related to these clients was $284.9 million or 16.4% of total deposits.

Current wording

Driven by political organization deposit balances as well as growth in 501(c)(4) social welfare organizations, total consolidated deposits grew to $1.6 billion at December 31, 2025 and $2.0 billion at June 30, 2026. As of June 30, 2026, there were three clients with an individual deposit balance exceeding 5.0% of total deposits. The total deposit balance related to these clients was $401.2 million or 20.0% of total deposits. As of December 31, 2025, no accounts individually exceeded 5% of total consolidated deposits.

Previous wording

Monetary Policy: We rely on the Federal Reserve’s payment of interest on reserve balances as a source of interest income. The required reserve balance and the rate of interest paid on reserve balances are determined by the Federal Reserve, but Congress, through legislative action and followed by the Executive branch approval, has power to limit or revoke the Federal Reserve’s authority to pay interest on required or excess reserves. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. We are most exposed to monetary policy during federal election years when campaign-related deposits rise and we match those liabilities with short-term assets such as Federal Reserve cash balances, which reprice immediately, and Treasury bills. Although higher interest rates decrease the value of our investment securities portfolio, they increase our interest income. While we have recently benefited from elevated short-term interest rates, the Federal Reserve lowered its target federal funds rate in September, October and December of 2025. To the extent short-term rates decline, our net interest income will be adversely affected. The Federal Reserve has additional monetary tools that can impact our interest income through changes in rates, such as the overnight reverse repo rate and open market operations.

Current wording

Monetary Policy: We rely on the Federal Reserve’s payment of interest on reserve balances as a source of interest income. The required reserve balance and the rate of interest paid on reserve balances are determined by the Federal Reserve, but Congress, through legislative action and followed by the Executive branch approval, has power to limit or revoke the Federal Reserve’s authority to pay interest on required or excess reserves. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. We are most exposed to monetary policy during federal election years when campaign-related deposits rise and we match those liabilities with short-term assets such as Federal Reserve cash balances, which reprice immediately, and Treasury bills. Although higher interest rates decrease the value of our investment securities portfolio, they increase our interest income. While we have recently benefited from elevated short-term interest rates, the Federal Reserve lowered its target federal funds rate in September, October and December of 2025. To the extent short-term rates decline, our net interest income will be adversely affected. The Federal

Previous wording

Uninsured Deposits: Most of our deposits come from commercial clients rather than retail clients, resulting in a relatively high level of account balances exceeding the FDIC coverage limits. As of March 31, 2026, we estimate that approximately 75.8% of our total deposits were not insured by the FDIC. To manage the associated risks, we aim to maintain high levels of liquidity, asset quality, and financial strength.

Current wording

Uninsured Deposits: Most of our deposits come from commercial clients rather than retail clients, resulting in a relatively high level of account balances exceeding the FDIC coverage limits. As of June 30, 2026, we estimate that approximately 80.8% of our total deposits were not insured by the FDIC. To manage the associated risks, we aim to maintain high levels of liquidity, asset quality, and financial strength.

Previous wording

Liquidity. Maintaining an adequate level of liquidity depends on our ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting our daily operations or the financial condition of the Bank. Because transaction account deposits form a primary source of our funding, and generally can be withdrawn on demand, managing our liquidity is a top priority. Our account at the Federal Reserve, which held $603.6 million as of March 31, 2026, is a primary source of our liquidity for daily and ongoing activities. Additionally, our bond portfolio is structured to provide liquidity when management anticipates it will be needed, with maturities aligned to expected cash flow requirements.

Current wording

Liquidity. Maintaining an adequate level of liquidity depends on our ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting our daily operations or the financial condition of the Bank. Because transaction account deposits form a primary source of our funding, and generally can be withdrawn on demand, managing our liquidity is a top priority. Our account at the Federal Reserve, which held $812.7 million as of June 30, 2026, is a primary source of our liquidity for daily and ongoing activities. Additionally, our bond portfolio is structured to provide liquidity when management anticipates it will be needed, with maturities aligned to expected cash flow requirements.

Previous wording

For the three months ended March 31, 2026, our net income increased by $1.5 million compared to the three months ended March 31, 2025. This improvement was attributed to a $1.7 million, or 247.9%, increase in noninterest income driven by an increase in deposit placement services income following the increase in One-Way Sell® balances. Additionally, net interest income increased by $1.1 million, or 8.0%, further contributing to the overall growth in net income. However, these components were partially offset by a $1.3 million increase in noninterest expense, driven most notably by increases in employment and professional services costs.

Current wording

For the three months ended June 30, 2026, our net income increased by $4.9 million compared to the three months ended June 30, 2025. This improvement was attributed to a $5.3 million, or 44.6% increase in net interest income driven by the increase in average interest-bearing deposits and investment securities. Additionally, noninterest income increased by $2.1 million, or 255.7%, further contributing to the overall growth in net income. However, these components were partially offset by increases of $1.3 million in income tax expense and $889 thousand in noninterest expenses.

Previous wording

For the three months ended March 31, 2026, our net interest income increased by $1.1 million, or 8.0%, compared to the three months ended March 31, 2025. The increase in interest income was primarily driven by higher average balances in, and yields on, taxable investment securities. Partially offsetting this earning component, the average balances in, and yields on loans and deposits at the Federal Reserve declined compared to the three months ended March 31, 2025. However, due to increased asset base, and lower yield earned by interest bearing deposits in other banks and loans, our net interest margin decreased to 3.41% for the three months ended March 31, 2026, from 3.56% for the three months ended March 31, 2025.

Current wording

For the three months ended June 30, 2026, our net interest income increased by $5.3 million, or 44.6%, compared to the three months ended June 30, 2025. The increase in interest income was primarily driven by higher average balances in interest-bearing deposits in other banks and taxable investment securities. Net interest income also benefited from a yield improvement in the taxable investment securities portfolio reflecting new investments, as well as reinvestment of maturing instruments into new securities with higher yields than those they replaced. These factors were partially offset by a decline in the yield earned on interest-bearing deposits at other banks, but overall contributed to the increase in the net interest margin to 3.45% for the three months ended June 30, 2026, from 3.39% for the three months ended June 30, 2025.

Previous wording

Interest and fees on loans. Loan interest income is comprised of fixed and adjustable-rate structures related to residential and commercial real estate loan products, commercial loans and other consumer loan products. Deferred loan origination fees, net of deferred loan origination costs, accrete to the loan’s yield over the life of the loan. For the three months ended March 31, 2026, our interest and fees on loans decreased 16.4% to $3.0 million compared to the three months ended March 31, 2025 primarily driven by a 27 basis point decrease in average yield and decrease of the average total loan balance of $34.7 million. The months following a general election, including the early months of 2025, often see elevated commercial and industrial loan balances, as political organizations typically utilize their lines of credit around election periods and may repay these balances over the subsequent six to twelve months, or as cash flows allow.

Current wording

Interest and fees on loans. Loan interest income is comprised of fixed and adjustable-rate structures related to residential and commercial real estate loan products, commercial loans and other consumer loan products. Deferred loan origination fees, net of deferred loan origination costs, accrete to the loan’s yield over the life of the loan. For the three months ended June 30, 2026, our interest and fees on loans decreased 7.5% to $3.1 million compared to the three months ended June 30, 2025 primarily driven by a decrease of the average total loan balance of $19.9 million. The months following a general election, including the early months of 2025, often experience elevated commercial and industrial loan balances, as political organizations typically utilize their lines of credit around election periods and may repay these balances over the subsequent six to twelve months, or as cash flows allow.

Previous wording

Interest and dividends on securities, taxable. For the three months ended March 31, 2026, our interest and dividends on taxable securities increased 62.6% to $7.5 million from $4.6 million for the three months ended March 31, 2025. The average balance for all taxable securities increased $287.4 million when comparing the periods, and the yield improved 36 basis points. As portions of maturing bonds have been reinvested, we have observed a steady increase in the average yield for the taxable securities portfolio. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 2026, which is intended to align with the timing of expected deposit outflows.

Current wording

Interest and dividends on securities, taxable. For the three months ended June 30, 2026, our interest and dividends on taxable securities increased 57.5% to $8.3 million from $5.3 million for the three months ended June 30, 2025. The average balance for all taxable securities drove the change, increasing $308.1 million over the comparative periods, and the yield improved 27 basis points. As portions of maturing bonds have been reinvested, we have observed a steady increase in the average yield for the taxable securities portfolio. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities with maturities during 2026, which is intended to align with the timing of expected deposit outflows.

Previous wording

Interest on interest-bearing deposits in banks. Chain Bridge earns interest for accounts held at certain correspondent banks, which are primarily reserves held at the Federal Reserve. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. The Federal Reserve started 2025 with an interest rate of 4.40% on reserve balances. During 2025, the rate was reduced by 25 basis points on three occasions—September 18th, October 30th, and December 11th—bringing it down to 3.65%. This final rate stayed in effect through the first quarter of 2026. For the three months ended March 31, 2026, our interest on interest-bearing deposits in banks decreased by $1.5 million compared to the prior period, driven by both a $46.5 million decrease in average balances and a decrease in yield of 76 basis points. The decline in the average balances of interest-bearing deposits in banks is a reflection of the Bank’s reallocation of interest-earning assets into investment securities.

Current wording

Interest on interest-bearing deposits in banks. Chain Bridge earns interest for accounts held at certain correspondent banks, which are primarily reserves held at the Federal Reserve. The Federal Reserve has historically adjusted its interest on reserves rate in conjunction with the federal funds rate. The Federal Reserve started 2025 with an interest rate of 4.40% on reserve balances. During 2025, the rate was reduced by 25 basis points on three occasions—September 18th, October 30th, and December 11th—bringing it down to 3.65%. This final rate stayed in effect through the second quarter of 2026. For the three months ended June 30, 2026, our interest on interest-bearing deposits in banks increased by $2.2 million compared to the prior period, driven by a $306.2 million increase in average balances and partially offset by a 77 basis point decline in yield. The increase in the average balances of interest-bearing deposits in banks reflects deposit-driven cash flows.

Previous wording

Interest on deposits. The Bank pays a variable interest rate to depositors for their non-maturing savings, interest-bearing checking, and money market accounts. In addition, the Bank issues time deposits that pay a fixed rate of interest until the instrument matures. For the three months ended March 31, 2026, our interest expense on deposits decreased 33.4% compared to the three months ended March 31, 2025. The decrease was driven by both a $70.0 million decrease in average interest-bearing deposit balances due to a larger volume of ICS®deposits being positioned as One-Way Sell®, and a 17 basis point decrease in the average rate. As of March 31, 2026 and March 31, 2025, approximately 80.6% and 79.3%, respectively, of our deposits were noninterest bearing.

Current wording

Interest on deposits. The Bank pays a variable interest rate to depositors for their non-maturing savings, interest-bearing checking, and money market accounts. In addition, the Bank issues time deposits that pay a fixed rate of interest until the instrument matures. For the three months ended June 30, 2026, our interest expense on deposits decreased 32.2% compared to the three months ended June 30, 2025. The decrease was driven by both a $74.5 million decrease in average interest-bearing deposit balances due to a larger volume of ICS®deposits being positioned as One-Way Sell®, and a 15 basis point decrease in the average rate. For the three months ended June 30, 2026 and June 30, 2025, approximately 84.2% and 71.1%, respectively, of our average deposits were noninterest bearing.

Previous wording

For the three months ended March 31, 2026, we recorded a net recapture of credit losses of $379 thousand. Within the loan portfolio, the $364 thousand recapture resulted from a reduction in outstanding balances, coupled with a decrease in the overall reserve rate for loan credit losses due to improving peer credit indicators utilized in our evaluation of qualitative factors and modest changes in the composition of the loan portfolio. Within our securities portfolio, the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology.

Current wording

For the three months ended June 30, 2026, we recorded a net recapture of credit losses of $40 thousand. Within the loan portfolio, the $18 thousand recapture resulted from several offsetting factors. A recapture of $289 thousand for the commercial real estate portfolio resulted from a reduction in outstanding balances, coupled with a decrease in the reserve rate for loan credit losses due to improving peer credit indicators utilized in our evaluation of qualitative factors. Partially offsetting this recapture was a $232 thousand provision for the residential real estate portfolio from an increase in the outstanding balance, coupled with an increase in the corresponding reserve rate due to declining peer credit indicators. The $39 thousand recorded as a provision within the commercial and other consumer loan portfolios made up the remaining difference. Within our securities portfolio, the shortening time to maturity of our held to maturity securities portfolio resulted in a lower required reserve in accordance with our ACL methodology.

Previous wording

For the three months ended March 31, 2026, our noninterest income increased by $1.7 million, or 247.9%, to $2.4 million compared to the three months ended March 31, 2025 primarily driven by an increase in deposit placement services income, which is fee income we earn on One-Way Sell® deposits sold through the ICS® network.

Current wording

For the three months ended June 30, 2026, our noninterest income increased by $2.1 million, or 255.7%, to $2.9 million compared to the three months ended June 30, 2025 primarily driven by an increase in deposit placement services income, which is fee income we earn on One-Way Sell® deposits sold through the ICS® network. For the six months ended June 30, 2026, our noninterest income increased by $3.8 million, or 252.1% to $5.4 million compared to the six months ended June 30, 2025. An increase in deposit placement services income drove the change between the comparative periods, and income from trust and wealth management services further contributed to the overall growth in noninterest income.

Previous wording

Deposit placement services income. For the three months ended March 31, 2026, our deposit placement services income increased by $1.5 million compared to the three months ended March 31, 2025 on account of higher One-Way Sell® deposit balances. As of March 31, 2026 and March 31, 2025, One-Way Sell® deposits totaled $595.0 million and $93.2 million, respectively. For the three months ended March 31, 2026, our average One-Way Sell® deposits were significantly higher than the average balance during the three months ended March 31, 2025. Income from deposit placement services is influenced by changes in the rate paid by ICS® for One Way Sell® deposits, which generally moves in line with federal funds rate adjustments. Additionally, income is affected by shifts in the composition of our deposits allocated to One Way Sell® positions. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Current wording

Deposit placement services income. Income from deposit placement services is influenced by several factors, including changes in One Way Sell® deposit volume, shifts in the composition of deposits allocated to One Way Sell® positions, and changes in the rate paid by ICS® for One-Way Sell® deposits, which generally moves in line with federal funds rate adjustments. As of June 30, 2026 and June 30, 2025, One-Way Sell® deposits totaled $668.0 million and $121.2 million, respectively, with average One-Way Sell® deposit balances during the three and six months ended June 30, 2026, being significantly higher than those during the comparable period ended June 30, 2025. Driven principally by these higher balances, deposit placement services income for the three months ended June 30, 2026 increased by $1.9 million compared to the three months ended June 30, 2025. On a year-over-year basis, the $3.4 million increase reflects these same factors, most notably the higher average balance of One-Way Sell® deposits as compared to the six months ended June 30, 2025. Accounts enrolled in the ICS® network are further discussed under “— Financial Condition — Deposits” below.

Previous wording

Trust and wealth management income. For the three months ended March 31, 2026, our trust and wealth management income increased by $164 thousand, or 60.7%, compared to the three months ended March 31, 2025. This increase was primarily due to a rise in the volume of total assets under administration, which grew to $711.7 million at March 31, 2026 from $409.4 million at March 31, 2025. The size and mix of the assets under administration drove the income growth. AUM, which produce a higher rate of income under our fee structure, increased 60.8% from March 31, 2025, while AUC increased 80.5% over the same period.

Current wording

Trust and wealth management income. For the three months ended June 30, 2026, our trust and wealth management income increased by $196 thousand, or 64.3%, compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, trust and wealth management income increased by $360 thousand, or 62.6%, compared to the six months ended June 30, 2025. These increases were primarily due to a rise in the volume of total assets under administration, which grew to $772.8 million at June 30, 2026 from $445.4 million at June 30, 2025. The size and mix of the assets under administration drove the income growth. AUM, which produce a higher rate of income under our fee structure, increased 62.8% from June 30, 2025, while AUC increased 79.4% over the same period.

Previous wording

Service charges on accounts. For the three months ended March 31, 2026, our service charges on accounts increased by $61 thousand, or 25.4%, compared to the three months ended March 31, 2025 primarily driven by higher transaction volume, particularly among ACH originations, check processing, and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions.

Current wording

Service charges on accounts. For the three months ended June 30, 2026, our service charges on accounts increased by $84 thousand, or 32.2%, compared to the three months ended June 30, 2025 primarily driven by higher transaction volume, particularly among ACH originations, check processing, and wire transfers. Our fee income is typically higher during the fiscal quarters leading up to and during the general election as political organization deposit account activity causes an increase in bank transactions.

Previous wording

Gain on sale of mortgage loans. For the three months ended March 31, 2026, the gain on sale of mortgages decreased by $13 thousand compared to the three months ended March 31, 2025, due to no sales activity or any related gains.

Current wording

Gain on sale of mortgage loans. For the three and six months ended June 30, 2026, the gain on sale of mortgages decreased by $11 thousand and $24 thousand, or 78.6% and 88.9%, respectively, compared to the three and six months ended June 30, 2025, due to lower sales activity and related gains.

Previous wording

For the three months ended March 31, 2026 our noninterest expense increased by $1.3 million, or 16.9%, compared to the three months ended March 31, 2025, primarily driven by increases in salaries and employee benefits and professional service expenses.

Current wording

For the three months ended June 30, 2026 our noninterest expense increased by $889 thousand, or 12.4%, compared to the three months ended June 30, 2025, primarily driven by increases in salaries and employee benefits, while a decline in professional service expenses partially offset the rise.

Previous wording

Salaries and employee benefits. For the three months ended March 31, 2026, our salaries and employee benefits increased by $390 thousand, or 8.8%, compared to the three months ended March 31, 2025, resulting from higher headcount and salary increases.

Current wording

Salaries and employee benefits. For the three months ended June 30, 2026, our salaries and employee benefits increased by $807 thousand, or 19.5%, compared to the three months ended June 30, 2025, resulting from higher headcount and salary increases. For similar reasons, our salaries and employee benefits for the six months ended June 30, 2026, increased by $1.2 million, or 14.0%.

Previous wording

Data processing and communication expenses. For the three months ended March 31, 2026, our data processing and communication expenses increased $139 thousand or 20.9%, compared to the three months ended March 31, 2025, driven by increased costs associated with enhanced information technology functionality.

Current wording

Data processing and communication expenses. For the three months ended June 30, 2026, our data processing and communication expenses increased $114 thousand, or 15.6%, compared to the three months ended June 30, 2025, driven by increased costs associated with enhanced information technology functionality. For similar reasons, our data processing and communications expenses for the six months ended June 30, 2026, increased $253 thousand, or 18.1%.

Previous wording

Professional services. For the three months ended March 31, 2026, our professional services expense increased $496 thousand, or 55.5%, compared to the three months ended March 31, 2025, primarily driven by legal expenses and partially offset by a decline in recruiting costs.

Current wording

Professional services. For the three months ended June 30, 2026, our professional services expense decreased $318 thousand or 39.7%, compared to the three months ended June 30, 2025, primarily driven by a decline in legal expenses and recruiting costs. For the six months ended June 30, 2026, professional services expense increased by $178 thousand, or 10.5%, primarily due to legal expenses.

Previous wording

State franchise taxes. For the three months ended March 31, 2026, our state franchise taxes remained relatively unchanged compared to the three months ended March 31, 2025.

Current wording

State franchise taxes. For the three and six months ended June 30, 2026, our state franchise taxes remained relatively stable compared to the three and six months ended June 30, 2025.

Previous wording

Occupancy and equipment expenses. For the three months ended March 31, 2026, our occupancy and equipment expenses increased by $75 thousand or 29.9%, compared to the three months ended March 31, 2025, primarily driven by increased building maintenance costs and additional office space.

Current wording

Occupancy and equipment expenses. For the three months ended June 30, 2026, our occupancy and equipment expenses increased $70 thousand, or 27.1% compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, our occupancy and equipment expenses increased by $145 thousand or 28.5%, compared to the six months ended June 30, 2025. The increases were primarily driven by increased building maintenance costs and expenses associated with additional office space during the comparative periods.

Previous wording

FDIC and regulatory assessments. For the three months ended March 31, 2026, our FDIC and regulatory assessments expense increased $14 thousand, or 6.1%, due to the growth in the Bank’s assets between the comparative periods.

Current wording

FDIC and regulatory assessments. For the three months ended June 30, 2026, our FDIC and regulatory assessments expense increased $66 thousand, or 32.7% compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, our FDIC and regulatory assessments expense increased $80 thousand, or 18.6% compared to the six months ended June 30, 2025. Growth in the Bank’s assets drove higher actual and estimated assessments for both comparative periods.

Previous wording

Directors’ fees. In the three months ended March 31, 2026, our directors’ fees increased $85 thousand compared to the three months ended March 31, 2025, driven by increased compensation for directors and a higher volume of Board and Committee meetings.

Current wording

Directors’ fees. For the three months ended June 30, 2026, our directors’ fees remained relatively unchanged compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, directors’ fees increased $107 thousand or 36.9%, compared to the six months ended June 30, 2025. The increase was primarily due to increased compensation for directors and a higher volume of Board and Committee meetings.

Previous wording

Other operating costs. This segment includes other operating and administrative costs such as other vendor and employee costs, marketing and development costs, postage and printing, office supplies, and subscriptions. For the three months ended March 31, 2026, the increase in our other operating costs during the period was attributable to modest offsetting fluctuations across the various expense categories comprising this segment compared to the three months ended March 31, 2025.

Current wording

Other operating costs. This segment includes other operating and administrative costs such as other vendor and employee costs, marketing and development costs, postage and printing, office supplies, and subscriptions. For the three and six months ended June 30, 2026, the increase in our other operating costs during the period was attributable to modest offsetting fluctuations across the various expense categories comprising this segment compared to the three and six months ended June 30, 2025.

Previous wording

Income tax expense is recorded based on our pre-tax financial income adjusted for nondeductible expenses and tax-exempt income. For the three months ended March 31, 2026, our income tax expense was $1.8 million, representing an increase of 27.7%, compared to $1.4 million for the three months ended March 31, 2025. The increase was driven by the increase in pre-tax earnings, which increased 26.4% during the comparable period.

Current wording

Income tax expense is recorded based on our pre-tax financial income adjusted for nondeductible expenses and tax-exempt income. For the three months ended June 30, 2026, our income tax expense was $2.5 million, representing an increase of 107.6%, compared to $1.2 million for the three months ended June 30, 2025. The increase was driven by the increase in pre-tax earnings, which increased 107.5% during the comparable period. For the six months ended June 30, 2026, our income tax expense was $4.3 million, an increase of 64.0%, compared to $2.6 million in the prior year. The increase was also driven by an increase in pre-tax earnings, which increased 63.0% over the prior year comparable period.