CHAIN BRIDGE BANCORP INC

Previous wording

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

Current wording

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

Previous 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.

Current wording

•Consolidated net income was $27.5 million for the nine months ended September 30, 2026, compared to $14.9 million for the nine months ended September 30, 2025. Earnings per share for the nine months ended September 30, 2026 was $4.19, compared to $2.27 for the nine months ended September 30, 2025.

Previous 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.

Current wording

•Net interest income, before provision for (recapture of) credit losses, was $51.9 million for the nine months ended September 30, 2026, compared to $37.9 million for the nine months ended September 30, 2025. Net interest income, after provision for (recapture of) credit losses, was $51.8 million for the nine months ended September 30, 2026, compared to $38.4 million for the nine months ended September 30, 2025.

Previous 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.

Current wording

•Return on average assets for the nine months ended September 30, 2026 was 1.81%, compared to 1.33% for the nine months ended September 30, 2025.

Previous 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.

Current wording

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

Previous wording

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

Current wording

•Total assets were $2.3 billion as of September 30, 2026, compared to $1.8 billion as of December 31, 2025.

Previous 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.

Current wording

•Total deposits were $2.1 billion as of September 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 $498.5 million as of September 30, 2026, compared to $359.9 million as of December 31, 2025.

Previous 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.

Current wording

•Cash balances held at the Federal Reserve were $1.0 billion as of September 30, 2026, compared to $580.9 million as of December 31, 2025.

Previous 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.

Current wording

•As of September 30, 2026, the total debt securities portfolio balance was $886.9 million, compared to $865.3 million as of December 31, 2025.

Previous wording

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

Current wording

•Book value per share was $29.24 as of September 30, 2026, compared to $25.79 as of December 31, 2025.

Previous 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%.

Current wording

•As of September 30, 2026, the Company had a total risk-based capital ratio of 48.36% and a tier 1 risk-based capital ratio of 47.36%. The Bank exceeded the minimum requirements to be well-capitalized for bank regulatory purposes, with a total risk-based capital ratio of 47.26% and a tier 1 risk-based capital ratio of 46.25%.

Previous wording

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

Current wording

•As of September 30, 2026, our liquidity ratio was 93.02%, compared to 91.86% as of December 31, 2025.

Previous wording

Short-term interest rates: The cyclical nature of our balance sheet and our focus on liquidity cause our primary revenue source, net interest income, to be highly correlated to short-term interest rates. We strive to maintain high levels of liquidity and low loan-to-deposit ratios. Higher rates generally increase our net interest income because of our high levels of liquid interest-earning assets and low levels of interest-bearing deposits and borrowings. Conversely, if short-term interest rates fall, our net interest income would likely decrease due to our high levels of cash. In 2025, the Federal Reserve lowered the target federal funds rate on three occasions, on September 18th, October 30th, and December 11th. There have been no changes to the target federal funds rate in 2026. This relationship between our revenue and the yield curve may differ from that of banks that have lower levels of cash and liquidity and higher loan-to-deposit ratios.

Current wording

Short-term interest rates: The cyclical nature of our balance sheet and our focus on liquidity cause our primary revenue source, net interest income, to be highly correlated to short-term interest rates. We strive to maintain high levels of liquidity and low loan-to-deposit ratios. Higher rates generally increase our net interest income because of our high levels of liquid interest-earning assets and low levels of interest-bearing deposits and borrowings. Conversely, if short-term interest rates fall, our net interest income would likely decrease due to our high levels of cash. In 2025, the Federal Reserve lowered the target federal funds rate on three occasions, on September 18th, October 30th, and December 11th. In 2026, the Federal Reserve increased the target federal funds rate on September 16th. This relationship between our revenue and the yield curve may differ from that of banks that have lower levels of cash and liquidity and higher loan-to-deposit ratios.

Previous wording

Federal election cycles significantly affect our deposit levels. These cycles also impact revenue-generating activities, such as wire transfers, payments, check processing, debit card usage, and treasury management services. Historically, deposits from political organizations increase in the periods leading up to federal elections followed by a decline around the elections. Election outcomes may also impact the timing and scale of deposit inflows or outflows from political organizations, and the most recent cycle was no exception.

Current wording

Federal election cycles significantly affect our deposit levels. These cycles also impact revenue-generating activities, such as wire transfers, payments, check processing, debit card usage, and treasury management services. Historically, deposits from political organizations increase in the periods leading up to federal elections followed by a decline around the elections. Election outcomes also impact the timing and scale of deposit inflows or outflows from political organizations.

Previous 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.

Current wording

Driven by political organization deposit balances as well as growth in 501(c)(4) social welfare organizations, total consolidated deposits grew from $1.6 billion at December 31, 2025 to $2.1 billion at September 30, 2026. As of September 30, 2026, there was one client with an individual deposit balance exceeding 5.0% of total deposits. The total deposit balance related to this client was $155.4 million or 7.5% of total deposits. As of December 31, 2025, no accounts individually exceeded 5% of total consolidated deposits.

Previous wording

Economic conditions: General economic conditions, particularly in the Washington, D.C. metropolitan area, and levels of government spending influence our deposit levels and earnings. At various points throughout 2025 and first quarter of 2026, we estimate that at least a majority of our deposit balances were sourced from political organizations, which we believe reduces our direct exposure to broader economic trends. However, economic downturns may lead to declines in political donations, which could adversely affect our deposit levels and income. Additionally, national or regional recessions could increase the risk of loan defaults and negatively impact the credit quality of our municipal and corporate bonds, potentially leading to defaults.

Current wording

Economic conditions: General economic conditions, particularly in the Washington, D.C. metropolitan area, and levels of government spending influence our deposit levels and earnings. At various points throughout 2025 and 2026, we estimate that at least a majority of our deposit balances were sourced from political and 501(c)(4) organizations, which we believe reduces our direct exposure to broader economic trends. However, economic downturns may lead to declines in political donations and contributions to 501(c)(4) organizations, which could adversely affect our deposit levels and income. Additionally, national or regional recessions could increase the risk of loan defaults and negatively impact the credit quality of our municipal and corporate bonds, potentially leading to defaults.

Previous wording

These measures coincided with a partial federal government shutdown from October 1 through November 12, 2025, following a lapse in federal fiscal year 2026 appropriations. Although essential services and Treasury operations continued, the shutdown contributed to slower government payments to contractors and a temporary reduction in federal payroll disbursements within the Washington, D.C. metropolitan area. A continuing resolution enacted on November 12, 2025 provided funding through January 30, 2026, and a subsequent appropriation in February 2026 allowed operations to resume.

Current wording

These measures coincided with a partial federal government shutdown from October 1 through November 12, 2025, following a lapse in federal fiscal year 2026 appropriations. Although essential services and Treasury operations continued, the shutdown contributed to slower government payments to contractors and a temporary reduction in federal payroll disbursements within the Washington, D.C. metropolitan area. Funding has been maintained through a series of continuing resolutions and appropriations, with the most recent continuing resolution, enacted on September 2, 2026, providing funding through December 11, 2026.

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

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. The Federal Reserve lowered its target federal funds rate in September, October and December of 2025 but increased its target federal funds rate in September

Previous wording

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

When 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.

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 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.

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 September 30, 2026, we estimate that approximately 83.7% 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 $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.

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 $1.0 billion as of September 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 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.

Current wording

For the three months ended September 30, 2026, our net income increased by $6.2 million compared to the three months ended September 30, 2025. This improvement was attributed to a $7.6 million, or 61.8%, 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 243.6%, further contributing to the overall growth in net income. However, these components were partially offset by increases of $1.7 million in income tax expense, $1.2 million in noninterest expenses and $574 thousand in the provision for credit losses.

Previous wording

For the six months ended June 30, 2026, our net income increased by $6.4 million compared to the six months ended June 30, 2025. The increase was driven by a $6.4 million increase in net interest income, along with a $3.8 million increase in noninterest income, partially reduced by increases of $1.7 million in income tax expense and $2.2 million in noninterest expenses.

Current wording

For the nine months ended September 30, 2026, our net income increased by $12.6 million compared to the nine months ended September 30, 2025. The increase was driven by a $13.9 million increase in net interest income, along with a $5.9 million increase in noninterest income, partially reduced by increases of $3.3 million in income tax expense, $3.4 million in noninterest expenses and $534 thousand in the provision for credit losses.

Previous 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.

Current wording

For the three months ended September 30, 2026, our net interest income increased by $7.6 million, or 61.8%, compared to the three months ended September 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. The average yield on the taxable investment securities portfolio also improved, reflecting a shift in mix toward higher-yielding available-for-sale securities as lower-yielding held-to-maturity securities matured, and the reinvestment of maturing corporate and municipal securities into new securities with higher yields. These factors were partially offset by lower short-term interest rates, which reduced the yield earned on interest-bearing deposits at other banks and on newly purchased U.S. Treasury securities. Additionally, a decline in the cost and size of average interest-bearing liabilities resulted in a reduction of interest expense of $458 thousand. As a result of these factors, net interest income grew faster than average interest-earning assets, and the net interest margin increased to 3.53% for the three months ended September 30, 2026, from 3.35% for the three months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2026, our net interest income increased by $6.4 million, or 24.8%, compared to the six months ended June 30, 2025. The interest income increase was driven by higher average balances and rates earned on taxable investment securities portfolio balances. Although the average balance of interest-bearing deposits in other banks grew, the yield on these assets declined, minimizing the effect of this asset segment. Despite growth in net interest income, net interest margin decreased from 3.48% to 3.43% year-over-year because average interest-earning assets grew at a higher rate than net interest income.

Current wording

For the nine months ended September 30, 2026, our net interest income increased by $13.9 million, or 36.8%, compared to the nine months ended September 30, 2025. The interest income increase was driven by higher average balances of interest-bearing deposits and taxable investment securities and increased rates earned on taxable investment securities portfolio balances. Although the average balance of interest-bearing deposits in other banks grew, the yield on these assets declined, tempering the effect of this asset segment. The decline in the cost and size of the interest-bearing liabilities drove the reduction in interest expense. Due to the factors described, net interest margin increased from 3.44% to 3.47% year-over-year because growth in net interest income outpaced growth in average interest-earning assets.

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 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.

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 September 30, 2026, our interest and fees on loans increased 2.8% to $3.3 million compared to the three months ended September 30, 2025, primarily driven by a 13 basis point increase in average yield. Although average total loan balances were essentially unchanged, the mix shifted away from lower-yielding residential mortgage loans and toward higher-yielding commercial and industrial loans, as political organizations drew on their lines of credit ahead of the 2026 federal elections.

Previous 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.

Current wording

Interest and dividends on securities, taxable. For the three months ended September 30, 2026, our interest and dividends on taxable securities increased 47.2% to $8.3 million from $5.6 million for the three months ended September 30, 2025. The average balance for all taxable securities drove the change, increasing $255.9 million over the comparative periods, and the yield improved 27 basis points. The yield increase primarily reflects a shift in portfolio mix toward higher-yielding available-for-sale securities as lower-yielding held-to-maturity securities matured, along with the reinvestment of maturing corporate and municipal securities at higher yields. The Company reinvested maturing bonds and invested funds from temporarily elevated deposit levels in short term U.S. Treasury securities, the majority of which have matured, or are scheduled to mature, during 2026, in alignment with the timing of expected deposit outflows.

Previous wording

For similar reasons, interest and dividends on taxable securities for the six months ended June 30, 2026 increased 59.9% to $15.8 million from $9.9 million for the six months ended June 30, 2025. The average balance for all taxable securities rose $298.9 million, and the yield increased 31 basis points.

Current wording

For similar reasons, interest and dividends on taxable securities for the nine months ended September 30, 2026 increased 55.3% to $24.1 million from $15.5 million for the nine months ended September 30, 2025. The average balance for all taxable securities rose $284.5 million, and the yield increased 29 basis points.

Previous wording

Interest on securities, tax-exempt. In recent years, the attainable yields for any new investment in this segment and the investment landscape have left tax-exempt securities less attractive than their taxable counterparts. Accordingly, as tax-exempt securities have matured, those proceeds have been invested into taxable municipal securities, causing balances and income to remain stable or slightly decline over time.

Current wording

Interest on securities, tax-exempt. In recent years, the attainable yields for any new investment in this segment and the investment landscape have left tax-exempt securities less attractive than their taxable counterparts. Accordingly, as tax-exempt securities have matured, those proceeds have been invested into available-for-sale taxable municipal securities, causing balances and income to remain stable or slightly decline over time.

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 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.

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 until September 17th, 2026 when the interest on reserve balances increased to 3.90%. For the three months ended September 30, 2026, our interest on interest-bearing deposits in banks increased by $4.4 million compared to the prior period, driven by a $532.0 million increase in average balances and offset by a 67 basis point decline in yield. The increase in the average balances of interest-bearing deposits in banks reflects deposit-driven cash flows.

Previous wording

For the six months ended June 30, 2026, our interest on interest-bearing deposits in banks increased $674 thousand compared to the prior period, driven by a $130.8 million increase in average balances and offset by a 77 basis point decline in yield.

Current wording

For the nine months ended September 30, 2026, our interest on interest-bearing deposits in banks increased $5.1 million compared to the prior period, driven by a $266.0 million increase in average balances and offset by a 73 basis point decline in yield.

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 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.

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 September 30, 2026, our interest expense on deposits decreased 39.6% compared to the three months ended September 30, 2025. The decrease was driven by both a $100.9 million decrease in average interest-bearing deposit balances due to a larger volume of ICS deposits being positioned as One-Way Sell, and a 22 basis point decrease in the average rate. For the three months ended September 30, 2026 and September 30, 2025, approximately 85.2% and 68.9%, respectively, of our average deposits were noninterest bearing.

Previous wording

For the six months ended June 30, 2026, our interest on deposits decreased by $611 thousand compared to the same period of 2025, due to a 16 basis point decline in cost and a $72.3 million decline in average balances.

Current wording

For the nine months ended September 30, 2026, our interest on deposits decreased by $1.1 million compared to the same period of 2025, due to a 19 basis point decline in cost and a $82.2 million decline in average balances.

Previous wording

The ACL represents an amount which, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be sustained on outstanding loans and investments at the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings to fund an increase in the ACL. Conversely, a recapture of credit loss is recorded to earnings when the ACL is reduced. Our recaptures of credit losses arising from within the loan and securities portfolios were as follows:

Current wording

The ACL represents an amount which, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be sustained on outstanding loans and investments at the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings to fund an increase in the ACL. Conversely, a recapture of credit loss is recorded to earnings when the ACL is reduced. Our provisions for or recaptures of credit losses arising from within the loan and securities portfolios were as follows:

Previous 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.

Current wording

For the nine months ended September 30, 2026, we reported a provision for credit losses of $61 thousand. Within the loan portfolio, the $125 thousand provision resulted from several offsetting factors. A recapture of $433 thousand for the commercial real estate portfolio resulted primarily from a decrease in the reserve rate, reflecting improving qualitative indicators. Offsetting this recapture was a $433 thousand provision for the commercial portfolio, reflecting growth of $26.7 million in commercial loans, primarily political organization lines of credit. The $125 thousand provision within the residential real estate and consumer loan portfolios made up the difference. Within our securities portfolio, the decreasing size and shortening time to maturity of our held to maturity securities portfolio resulted in a $64 thousand recapture.

Previous wording

Noninterest income consists of deposit placement services income, service charges on deposit accounts, trust and wealth management income, gains on sale of mortgage loans, net gains or losses on sales of securities and other income.

Current wording

Noninterest income consists of deposit placement services income, trust and wealth management income, service charges on deposit accounts, gains on sale of mortgage loans, and other income.

Previous 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.

Current wording

For the three months ended September 30, 2026, our noninterest income increased by $2.1 million, or 243.6%, to $2.9 million compared to the three months ended September 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 nine months ended September 30, 2026, our noninterest income increased by $5.9 million, or 248.9%, to $8.3 million compared to the nine months ended September 30, 2025. An increase in deposit placement services income drove the change between the comparative periods, and increased income from trust and wealth management services further contributed to the overall growth in noninterest income.

Previous 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.

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 September 30, 2026 and September 30, 2025, One-Way Sell deposits totaled $498.5 million and $146.4 million, respectively, with average One-Way Sell deposit balances during the three and nine months ended September 30, 2026, being significantly higher than those during the comparable period ended September 30, 2025. Driven principally by these higher balances, deposit placement services income for the three months ended September 30, 2026 increased by $1.8 million compared to the three months ended September 30, 2025. On a year-over-year basis, the $5.2 million increase reflects these same factors, most notably the higher average balance of One-Way Sell deposits as compared to the nine months ended September 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 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.

Current wording

Trust and wealth management income. For the three months ended September 30, 2026, our trust and wealth management income increased by $136 thousand, or 38.3%, compared to the three months ended September 30, 2025. For the nine months ended September 30, 2026, trust and wealth management income increased by $496 thousand, or 53.3%, compared to the nine months ended September 30, 2025. These increases were primarily due to a rise in the volume of total assets under administration, which grew to $732.6 million at September 30, 2026 from $552.4 million at September 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 33.2% from September 30, 2025, while AUC increased 32.3% over the same period.

Previous 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.

Current wording

Service charges on accounts. For the three months ended September 30, 2026, our service charges on accounts increased by $140 thousand, or 56.0%, compared to the three months ended September 30, 2025 driven primarily by higher wire transaction volume, as well as increases in monthly account service charges and interchange fees from the Bank’s commercial credit card product. 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.