# Bank7 Corp. (BSVN) Informational only - not investment advice. CIK: 0001746129 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-03-17 SEC page: https://www.sec.gov/edgar/browse/?CIK=1746129 Filing source: https://www.sec.gov/Archives/edgar/data/1746129/000114036126009657/ef20060654_10k.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 128758000 | USD | 2025 | 2026-03-17 | | Net income | 43069000 | USD | 2025 | 2026-03-17 | | Assets | 1963640000 | USD | 2025 | 2026-03-17 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001746129.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 33,153,000 | 42,870,000 | 46,800,000 | 51,709,000 | 53,314,000 | 56,289,000 | 78,749,000 | 121,544,000 | 131,540,000 | 128,758,000 | | Net income | 16,817,000 | 23,789,000 | 25,000,000 | 8,225,000 | 19,266,000 | 23,159,000 | 29,638,000 | 28,275,000 | 45,698,000 | 43,069,000 | | Diluted EPS | 2.31 | 3.26 | 3.03 | 0.81 | 2.05 | 2.55 | 3.22 | 3.05 | 4.84 | 4.50 | | Operating cash flow | 19,357,000 | 25,877,000 | 27,001,000 | 19,180,000 | 25,235,000 | 30,133,000 | 39,714,000 | 49,125,000 | 55,046,000 | 46,136,000 | | Capital expenditures | 2,319,000 | 3,969,000 | 378,000 | 3,100,000 | 438,000 | 599,000 | 294,000 | 2,834,000 | 4,197,000 | 4,740,000 | | Dividends paid | 6,995,000 | 9,749,000 | 56,155,000 | 1,006,000 | 7,803,000 | 3,982,000 | 4,366,000 | 6,323,000 | 8,057,000 | 9,342,000 | | Assets | | 703,594,000 | 770,511,000 | 866,392,000 | 1,016,669,000 | 1,350,549,000 | 1,584,169,000 | 1,771,666,000 | 1,739,808,000 | 1,963,640,000 | | Liabilities | | 634,418,000 | 682,045,000 | 766,266,000 | 909,350,000 | 1,223,141,000 | 1,440,069,000 | 1,601,340,000 | 1,526,595,000 | 1,712,645,000 | | Stockholders' equity | 55,136,000 | 69,176,000 | 88,466,000 | 100,126,000 | 107,319,000 | 127,408,000 | 144,100,000 | 170,326,000 | 213,213,000 | 250,995,000 | | Free cash flow | 17,038,000 | 21,908,000 | 26,623,000 | 16,080,000 | 24,797,000 | 29,534,000 | 39,420,000 | 46,291,000 | 50,849,000 | 41,396,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 50.73% | 55.49% | 53.42% | 15.91% | 36.14% | 41.14% | 37.64% | 23.26% | 34.74% | 33.45% | | Return on equity | 30.50% | 34.39% | 28.26% | 8.21% | 17.95% | 18.18% | 20.57% | 16.60% | 21.43% | 17.16% | | Return on assets | | 3.38% | 3.24% | 0.95% | 1.90% | 1.71% | 1.87% | 1.60% | 2.63% | 2.19% | | Liabilities / equity | | 9.17 | 7.71 | 7.65 | 8.47 | 9.60 | 9.99 | 9.40 | 7.16 | 6.82 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001746129.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 0.76 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 0.87 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.04 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 30,042,000 | 9,746,000 | 1.05 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 31,722,000 | 7,853,000 | 0.85 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 32,400,000 | 1,069,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 33,287,000 | 11,288,000 | 1.21 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 32,436,000 | 11,524,000 | 1.23 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 33,488,000 | 11,777,000 | 1.24 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 32,330,000 | 11,109,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 30,438,000 | 10,336,000 | 1.08 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 31,781,000 | 11,105,000 | 1.16 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 33,717,000 | 10,844,000 | 1.13 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 32,816,000 | 10,784,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 33,783,000 | 12,006,000 | 1.25 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1746129/000114036126020594/ef20070441_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-11 Report date: 2026-03-31 ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Quarterly Report and in our Annual Report on Form 10-K for the year ended December 31, 2025. Unless the context indicates otherwise, references in this management’s discussion and analysis to “we,” “our,” and “us,” refer to Bank7 Corp. and its consolidated subsidiaries.  All references to “the Bank” refer to Bank7, our wholly owned subsidiary. General We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate twelve full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets and we will also pursue strategic acquisitions. As a bank holding company, we generate most of our revenue from interest income on loans and from short-term investments. The primary source of funding for our loans and short-term investments are deposits held by our subsidiary, Bank7. We measure our performance by our return on average assets, return on average equity, earnings per share, capital ratios, and efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income. Q1 2026 Overview We reported total loans of $1.59 billion as of March 31, 2026, an increase of $170.1 million, or 11.9%, from March 31, 2025. Total deposits were $1.67 billion as of March 31, 2026, an increase of $120.1 million, or 7.7%, from March 31, 2025. Income before taxes was $15.8 million, an increase of $2.1 million, or 15.4%, for the three months ended March 31, 2026 as compared to income before taxes of $13.7 million for the same period in 2025. Pre-tax return on average assets and return on average equity was 3.37% and 25.06%, respectively for the three months ended March 31, 2026, as compared to 3.20% and 25.47%, respectively, for the same period in 2025. Our efficiency ratio for the three months ended March 31, 2026 was 39.64% as compared to 39.45% for the same period in 2025. 34 Table of Contents Sale of Oil and Gas Assets Regarding the subsequent event item mentioned in Note 1 herein, management has successfully completed its objective to maximize the loan loss recovery related to an oil and gas loan.  To refresh memories, in the fourth quarter of 2023 management expended $16.5 million to acquire certain oil and gas assets.  On a cash basis, prior to the second quarter 2026 the Company had received cash proceeds from oil and gas sales of $14.9 million, and when that is combined with the second quarter sale proceeds of $5.2 million, the total cash recovery of $20.1 million exceeds the $16.5 million cash outlay by $3.7 million.  Over the holding period from fourth quarter of 2023 through first quarter of 2026, these assets generated cumulative pre-tax net income of approximately $5.8 million, which we believe is the most directly comparable GAAP measure to the non-GAAP cash summary presented below. GAAP to Non-GAAP Reconciliation for Oil and Gas Assets (dollars in thousands): Acquisition Date through March 31, 2026 April 30, 2026 GAAP Income before taxes $ 5,751 $ 5,692 Add back non-cash expenses: Depletion 9,134 9,134 Amortization & accretion 81 81 Net cash flow from operations (Non-GAAP) $ 14,966 $ 14,907 Remaining accruals to be settled 68 Add: Sales proceeds from final disposition (April 2026) 5,164 Total cash generated by asset (Non-GAAP) $ 20,139 Less: Initial cash outlay for acquisition (Q4 2023) (16,481 ) Net cash returned (Non-GAAP) $ 3,658 Initial cash outlay for acquisition (Q4 2023) $ (16,487 ) Cash inflows: Net cash receipts from operator statements 14,907 Sales proceeds from minor asset sales (2024) 17 Sales proceeds from final disposition (April 2026) 5,164 Total cash inflows $ 20,088 Cash outflows: Transaction costs and other adjustments 57 Total Cash outflows $ 57 Net cash returned (Non-GAAP) $ 3,658 Net Cash Returned is a non-GAAP financial measure used by management to analyze the cash cycle of this specific investment. This measure has significant limitations and is not a substitute for results prepared in accordance with U.S. GAAP. It should not be considered in isolation or as an alternative to net income. This measure is reconciled from income before taxes by adding back only the non-cash expenses shown in the table above. 35 Table of Contents Results of Operations Net Interest Income and Net Interest Margin The following table presents, for the periods indicated, information about: (i) weighted average balances, the total dollar amount of interest income from interest-earning assets, and the resultant average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities, and the resultant average rates; (iii) net interest income; and (iv) the net interest margin. Net Interest Margin For the Three Months Ended March 31, 2026 2025 Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Short-term investments $ 210,047 $ 1,861 3.60 % $ 238,048 $ 2,768 4.72 % Debt securities, taxable 43,564 250 2.33 48,637 283 2.36 Debt securities, tax exempt(1) 11,052 59 2.17 12,514 63 2.04 Loans held for sale 1,983 - - 580 - - Total loans(2) 1,596,201 31,613 8.03 1,398,350 27,324 7.92 Total interest-earning assets 1,862,847 $ 33,783 7.35 1,698,129 $ 30,438 7.27 Noninterest-earning assets 41,295 39,957 Total assets $ 1,904,142 $ 1,738,086 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 1,058,572 $ 7,223 2.77 % $ 956,891 $ 7,118 3.02 % Time deposits 264,608 2,368 3.63 236,325 2,482 4.26 Total interest-bearing deposits 1,323,180 9,591 2.94 1,193,216 9,600 3.62 Total interest-bearing liabilities 1,323,180 9,591 2.94 1,193,216 9,600 3.62 Noninterest-bearing liabilities: Noninterest-bearing deposits 315,426 316,544 Other noninterest-bearing liabilities 9,515 9,983 Total noninterest-bearing liabilities 324,941 326,527 Shareholders’ equity 256,021 218,343 Total liabilities and shareholders’ equity $ 1,904,142 $ 1,738,086 Net interest income $ 24,192 $ 20,838 Net interest spread 4.41 % 4.01 % Net interest margin 5.27 % 4.98 % (1) Taxable-equivalent yield of 2.85% as of March 31, 2026, applying a 24.1% effective tax rate. (2) Average loan balances include monthly average nonaccrual loans of $10.0 million and $6.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively. For the first quarter of 2026 compared to the first quarter of 2025: - Total interest income on loans increased $4.3 million, or 15.7%, to $31.6 million, due to increased loan yields as discussed below; - Yields on our interest-earning assets totaled 7.35%, an increase of 8 basis points which was primarily attributable to higher loan yields of 11 basis points, and a decrease in yield on short-term investments of 112 basis points; and - Net interest margin was 5.27% compared to 4.98%. 36 Table of Contents Increases and decreases in interest income and interest expense result from changes in average balances, or volume, of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following tables set forth the effects of changing rates and volumes on our net interest income during the period shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (change in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Analysis of Changes in Interest Income and Expenses For the Three Months Ended March 31, 2026 vs 2025 Change due to: Volume(1) Rate(1) Interest Variance (Dollars in thousands) Increase (decrease) in interest income: Short-term investments $ (326 ) $ (581 ) $ (907 ) Debt securities (37 ) - (37 ) Total loans 3,866 423 4,289 Total increase (decrease) in interest income 3,503 (158 ) 3,345 Increase (decrease) in interest expense: Deposits: Transaction accounts 756 (651 ) 105 Time deposits 297 (411 ) (114 ) Total interest-bearing deposits 1,053 (1,062 ) (9 ) Total increase (decrease) in interest expense 1,053 (1,062 ) (9 ) Increase (decrease) in net interest income $ 2,450 $ 904 $ 3,354 (1) Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category. 37 Table of Contents Weighted Average Yield of Debt Securities The following table summarizes the maturity distribution schedule with corresponding weighted average taxable equivalent yields of the debt securities portfolio at March 31, 2026. The following table presents securities at their expected maturities, which may differ from contractual maturities. The Company manages its debt securities portfolio for liquidity, as a tool to execute its asset/liability management strategy, and for pledging requirements for public funds: As of March 31, 2026 After One Year But After Five Years But Within One Year Within Five Years Within Ten Years After Ten Years Total Amount Yield * Amount Yield * Amount Yield * Amount Yield * Amount Yield * Available-for-sale (Dollars in thousands) U.S. federal agencies $ 7 2.62 % $ - 0.00 % $ - 0.00 % $ - 0.00 % $ 7 2.62 % Mortgage-backed securities 2,224 1.45 5,683 1.37 903 1.42 15,940 1.72 24,750 1.61 State and political subdivisions 3,049 1.52 9,465 1.61 4,136 1.69 - - 16,650 1.62 U.S. treasuries 987 0.97 4,598 1.10 - - - - 5,585 1.08 Corporate debt securities - - - - 5,148 3.36 - - 5,148 3.36 Total $ 6,267 1.41 % $ 19,746 1.42 % $ 10,187 2.50 % $ 15,940 1.72 % $ 52,140 1.73 % Percentage of total 12.02 % 37.87 % 19.54 % 30.57 % 100.00 % *Yield is on a taxable-equivalent basis using 21% tax rate Provision for Credit Losses For the three months ended March 31, 2026 compared to the three months ended March 31, 2025, there was no provision for credit losses. Income Taxes We file a consolidated income tax return and recognize deferred taxes based upon the future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. The process of determining the accruals for income taxes involves the exercise of considerable judgment regarding tax rates, laws, and the implementation of tax planning strategies. For the three months ended March 31, 2026, and 2025, all of our income before income taxes was generated from domestic operations. We do not currently have exposure to foreign tax jurisdictions; as such, our jurisdictional tax mix remains concentrated within the United States and specific state jurisdictions, primarily Oklahoma. Our provision for income taxes was $3.8 million for the three months ended March 31, 2026, compared to $3.4 million for 2025. This resulted in an effective tax rate of 24.11% in 2026, compared to 24.63% in 2025. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the effect of state i [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this report. Unless the context indicates otherwise, references in this management’s discussion and analysis to “we”, “our”, and “us,” refer to Bank7 Corp. and its consolidated subsidiaries.  All references to “the Bank” refer to Bank7, our wholly owned subsidiary. General We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate twelve full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets and we will also pursue strategic acquisitions. As a bank holding company, we generate most of our revenue from interest income on loans and from short-term investments.  The primary source of funding for our loans and short-term investments are deposits held by our subsidiary, Bank7.  We measure our performance by our return on average assets, return on average equity, earnings per share, capital ratios, and efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income. As of December 31, 2025, we had total assets of $1.96 billion, total loans of $1.61 billion, total deposits of $1.70 billion and total shareholders’ equity of $251.0 million. The Federal Reserve aggressively raised the federal funds target rate throughout 2022 and 2023 to combat elevated inflation, reaching a peak range of 5.25% to 5.50% by December 31, 2023. In 2024, the Federal Reserve began to adjust monetary policy, ultimately lowering the federal funds rate three times to end that year with a target range of 4.25% to 4.50%. This easing cycle continued into 2025, with the Federal Reserve implementing three additional 25-basis-point reductions in the second half of the year. As of December 31, 2025, the federal funds target range stood at 3.50% to 3.75%. These monetary policy actions, along with the impact of the transition from a peak-rate environment, compressed our net interest margin while generally supporting stable credit quality throughout 2025. 2025 Overview We reported total loans of $1.61 billion as of December 31, 2025, an increase of $209.0 million, or 15.0%, from December 31, 2024. Total deposits were $1.70 billion as of December 31, 2025, an increase of $185.4 million, or 12.2%, from December 31, 2024. Income before taxes was $56.8 million, a decrease of $3.6 million, or 6.0%, for the year ended December 31, 2025 as compared to income before taxes of $60.4 million for the same period in 2024. Pre-tax return on average assets and return on average equity was 3.12% and 24.39%, respectively, for the year ended December 31, 2025, as compared to 3.50% and 31.41%, respectively, for the same period in 2024. Tax-adjusted return on average assets and return on average equity was 2.37% and 18.51%, respectively, for the year ended December 31, 2025, as compared to 2.65% and 23.78%, respectively, for the same period in 2024. Our efficiency ratio for the year ended December 31, 2025 was 40.24% as compared to 37.90% for the same period in 2024. The provision for credit losses for the year ended December 31, 2025, was $700,000, an increase of 100% compared to a $0 provision for the year ended December 31, 2024. This provision was primarily attributable to the 15% year-over-year loan growth realized during the period, as total loans increased by $209.0 million to $1.61 billion at December 31, 2025. The 2025 provisioning reflects management’s ongoing assessment of the allowance for credit losses required to support the expanded loan portfolio and incorporates updated economic assumptions relevant to the current environment. We continue to monitor credit metrics and economic indicators to ensure the allowance for credit losses remains at an appropriate level to address potential credit risks within the portfolio. See Note 5 of the financial statements for further disclosure and discussion. 23 Table of Contents Results of Operations Years Ended December 31, 2025, December 31, 2024, and December 31, 2023 Net Interest Income and Net Interest Margin The following table presents, for the periods indicated, information about: (i) weighted average balances, the total dollar amount of interest income from interest-earning assets, and the resultant average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities, and the resultant average rates; (iii) net interest income; and (iv) the net interest margin. Net Interest Margin For the Year Ended December 31, 2025 2024 2023 Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Short-term investments $ 235,211 $ 9,914 4.21 % $ 184,328 $ 9,320 5.04 % $ 174,600 $ 8,580 4.91 % Debt securities, taxable 46,599 1,085 2.33 90,184 2,531 2.80 152,094 2,791 1.84 Debt securities, tax exempt(1) 12,042 246 2.04 16,651 273 1.64 19,430 330 1.70 Loans held for sale 1,448 - - 343 - - 158 - - Total loans(2) 1,483,112 117,513 7.92 1,391,552 119,416 8.56 1,315,578 109,843 8.35 Total interest-earning assets 1,778,412 $ 128,758 7.24 1,683,058 $ 131,540 7.79 1,661,860 $ 121,544 7.31 Noninterest-earning assets 41,782 39,555 25,943 Total assets $ 1,820,194 $ 1,722,613 $ 1,687,803 Funding sources: Interest-bearing liabilities: Deposits: Transaction accounts $ 1,021,059 $ 31,396 3.07 % $ 882,314 $ 33,408 3.78 % $ 825,169 $ 28,582 3.46 % Time deposits 237,548 9,489 3.99 254,057 11,937 4.69 256,672 10,416 4.06 Total interest-bearing deposits 1,258,607 40,885 3.25 1,136,371 45,345 3.98 1,081,841 38,998 3.60 Total interest-bearing liabilities 1,258,607 40,885 3.25 1,136,371 45,345 3.98 1,081,841 38,998 3.60 Noninterest-bearing liabilities: Noninterest-bearing deposits 317,743 381,660 433,603 Other noninterest-bearing liabilities 11,105 12,419 10,423 Total noninterest-bearing liabilities 328,848 394,079 444,026 Shareholders’ equity 232,739 192,163 161,936 Total liabilities and shareholders’ equity $ 1,820,194 $ 1,722,613 $ 1,687,803 Net interest income $ 87,873 $ 86,195 $ 82,546 Net interest spread 3.99 % 3.81 % 3.71 % Net interest margin 4.94 % 5.11 % 4.97 % (1) Taxable-equivalent yield of 2.69% as of December 31, 2025, applying a 24.1% effective tax rate (2) Average loan balances include monthly average nonaccrual loans of $5.97 million, $12.4 million and $18.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025 compared to the year ended December 31, 2024: - Total interest income on loans decreased $1.9 million, or 1.6%, to $117.5 million, due to decreased loan yields as discussed below; - Yields on our interest-earning assets totaled 7.24%, a decrease of 55 basis points which was attributable to lower loan yields of 64 basis points, a decrease in yield on short term investments of 83 basis points, and a decrease in yield on taxable debt securities of 47 basis points; and - Net interest margin for the years ended 2025 and 2024 was 4.94% and 5.11%, respectively. 24 Table of Contents For the year ended December 31, 2024 compared to the year ended December 31, 2023: - Total interest income on loans increased $9.6 million, or 8.7%, to $119.4 million, which was attributable to a $76.0 million increase in the average balance of loans to $1.39 billion during the year ended 2024 as compared with the average balance of loans of $1.32 billion for the year ended 2023, and increased loan yields as discussed below; - Yields on our interest-earning assets totaled 7.79%, an increase of 48 basis points which was attributable to higher loan yields of 21 basis points, an increase in yield on short term investments of 13 basis points, and an increase in yield on taxable debt securities of 96 basis points; and - Net interest margin for the years ended 2024 and 2023 was 5.11% and 4.97%, respectively. The Federal Reserve (“FED”) influences the general market rates of interest, including the deposit and loan rates offered by many financial institutions. Our loan portfolio is significantly affected by changes in the prime interest rate. For the three-year period between January 1, 2023 and December 31, 2025, the prime rate fluctuated between a high of 8.50%, and a low of 6.75%. Interest income on short-term investments increased $594,000, or 6.4%, to $9.9 million for year ended December 31, 2025 compared to 2024, due to an increase in the average balances of $50.9 million, or 27.6% and a yield decrease of 83 basis points.  Interest income on short-term investments increased $740,000, or 8.6%, to $9.3 million for year ended December 31, 2024 compared to 2023, due to an increase in the average balances of $9.7 million, or 5.6% and a yield increase of 13 basis points. Interest expense on interest-bearing deposits totaled $40.9 million for the year ended December 31, 2025, compared to $45.3 million for 2024, a decrease of $4.5 million, or 9.8%. The decrease was related to the cost of interest-bearing deposits decreasing to 3.25% for the year ended December 31, 2025 from 3.98% for the year ended December 31, 2024.  Interest expense on interest-bearing deposits totaled $45.3 million for the year ended December 31, 2024, compared to $39.0 million for 2023, an increase of $6.3 million, or 16.3%. The increase was related to the cost of interest-bearing deposits increasing to 3.98% for the year ended December 31, 2024 from 3.60% for the year ended December 31, 2023. Net interest margin for the years ended December 31, 2025, 2024 and 2023 was 4.94%, 5.11% and 4.97%, respectively. The following table sets forth the effects of changing rates and volumes on our net interest income during the period shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (change in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Analysis of Changes in Interest Income and Expenses For the Year Ended For the Year Ended December 31, 2025 vs 2024 December 31, 2024 vs 2023 Change due to: Change due to: Volume(1) Rate(1) Interest Volume(1) Rate(1) Interest Variance Variance (Dollars in thousands) (Dollars in thousands) Increase (decrease) in interest income: Short-term investments $ 2,565 $ (1,971 ) $ 594 $ 478 $ 262 $ 740 Debt securities (1,296 ) (177 ) (1,473 ) (1,186 ) 869 (317 ) Total loans 7,838 (9,741 ) (1,903 ) 6,344 3,229 9,573 Total increase (decrease) in interest income 9,107 (11,889 ) (2,782 ) 5,636 4,360 9,996 Increase (decrease) in interest expense: Deposits: Transaction accounts 5,245 (7,257 ) (2,012 ) 1,977 2,849 4,826 Time deposits (774 ) (1,674 ) (2,448 ) (106 ) 1,627 1,521 Total interest-bearing deposits 4,471 (8,931 ) (4,460 ) 1,871 4,476 6,347 Total increase (decrease) in interest expense 4,471 (8,931 ) (4,460 ) 1,871 4,476 6,347 Increase (Decrease) in net interest income $ 4,636 $ (2,958 ) $ 1,678 $ 3,765 $ (116 ) $ 3,649 (1) Variances attributable to both volume and rate are allocated on a consistent basis between rate and volume based on the absolute value of the variances in each category. 25 Table of Contents Weighted Average Yield of Debt Securities The following table summarizes the maturity distribution schedule with corresponding weighted average taxable equivalent yields of the debt securities portfolio at December 31, 2025. The following table presents securities at their expected maturities, which may differ from contractual maturities. The Company manages its debt securities portfolio for liquidity, as a tool to execute its asset/liability management strategy, and for pledging requirements for public funds: As of December 31, 2025 After One Year But After Five Years But Within One Year Within Five Years Within Ten Years After Ten Years Total Amount Yield * Amount Yield * Amount Yield * Amount Yield * Amount Yield * Available-for-sale (Dollars in thousands) U.S. federal agencies $ 21 0.14 % $ - 0.00 % $ - 0.00 % $ - 0.00 % $ 21 0.14 % Mortgage-backed securities 902 1.33 7,059 1.37 - - 17,471 1.70 25,432 1.60 State and political subdivisions 3,885 1.65 9,531 1.57 4,358 1.70 - - 17,774 1.62 U.S. treasuries 983 0.97 3,743 1.09 882 1.12 - - 5,608 1.08 Corporate debt securities - - - - 5,184 3.36 - - 5,184 3.36 Total $ 5,791 1.48 % $ 20,333 1.41 % $ 10,424 2.47 % $ 17,471 1.70 % $ 54,019 1.72 % Percentage of total 10.72 % 37.64 % 19.30 % 32.34 % 100.00 % *Yield is on a taxable-equivalent basis using 21% tax rate Provision for Credit Losses For the year ended December 31, 2025 compared to the year ended December 31, 2024: - The provision for credit losses increased from $0 to $700,000, reflecting routine adjustments within our allowance for credit losses estimation methodology; and - The allowance as a percentage of loans decreased by 7 basis points to 1.21%. For the year ended December 31, 2024 compared to the year ended December 31, 2023: - The provision for credit losses decreased from $21.1 million to $0; and - The allowance as a percentage of loans decreased by 16 basis points to 1.28%. - The decrease in the provision was primarily due to the impact of a single loan customer that filed for bankruptcy in 2023, resulting in a $16.5 million charge-off recorded during that period. Income Taxes We file a consolidated income tax return and recognize deferred taxes based upon the future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. The process of determining the accruals for income taxes involves the exercise of considerable judgment regarding tax rates, laws, and the implementation of tax planning strategies. For the years ended December 31, 2025, 2024, and 2023, all of our income before income taxes was generated from domestic operations. We do not currently have exposure to foreign tax jurisdictions; as such, our jurisdictional tax mix remains concentrated within the United States and specific state jurisdictions, primarily Oklahoma. Our provision for income taxes was $13.7 million for the year ended December 31, 2025, compared to $14.7 million for 2024. This resulted in an effective tax rate of 24.13% in 2025, compared to 24.28% in 2024. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the effect of state income taxes (net of federal benefit) and nondeductible expenses. The year-over-year rate change was primarily driven by the impact of Oklahoma state taxes and certain nondeductible reconciling items. Cash taxes paid during 2025 totaled $13.7 million, compared to $15.1 million in 2024, reflecting our domestic jurisdictional profile and the timing of estimated tax payments. Noninterest Income The following table sets forth the major components of our noninterest income for the years ended December 31, 2025, 2024 and 2023: 26 Table of Contents For the Years Ended For the Years Ended December 31, December 31, 2025 2024 $ Increase % Increase 2024 2023 $ Increase % Increase (Decrease) (Decrease) (Decrease) (Decrease) (Dollars in thousands) (Dollars in thousands) Noninterest income: Mortgage lending income $ 1,326 $ 370 $ 956 258.38 % $ 370 $ 331 $ 39 11.78 % Gain (Loss) on sales, prepayments, and calls of available-for-sale debt securities (10 ) (6 ) (4 ) 66.67 % (6 ) (16 ) 10 -62.50 % Service charges on deposit accounts 941 975 (34 ) -3.49 % 975 869 106 12.20 % Other 6,246 9,915 (3,669 ) -37.00 % 9,915 8,058 1,857 23.05 % Total noninterest income $ 8,503 $ 11,254 $ (2,751 ) -24.44 % $ 11,254 $ 9,242 $ 2,012 21.77 % For the year ended December 31, 2025 compared to the year ended December 31, 2024: - Other noninterest income was $6.2 million compared to $9.9 million, a decrease of $3.7 million, or 37.0%.  The decrease was primarily attributable to income related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements. For the year ended December 31, 2024 compared to the year ended December 31, 2023: - Other noninterest income was $9.9 million compared to $8.1 million, an increase of $1.9 million, or 23.1%.  The increase was primarily attributable to income related to the operation of oil and gas assets acquired during the fourth quarter of 2023, see Note 2 of the financial statements. Noninterest Expense Noninterest expense for the year ended December 31, 2025 was $38.9 million compared to $37.1 million for the year ended December 31, 2024, an increase of $1.8 million or 4.9%. Noninterest expense for the year ended December 31, 2024 was $37.1 million compared to $33.4 million for the year ended December 31, 2023, an increase of $3.7 million or 11.0%. The following table sets forth the major components of our noninterest expense for the years ended December 31, 2025, 2024 and 2023: For the Years Ended For the Years Ended December 31, December 31, 2025 2024 $ Increase (Decrease) % Increase (Decrease) 2024 2023 $ Increase (Decrease) % Increase (Decrease) (Dollars in thousands) (Dollars in thousands) Noninterest expense: Salaries and employee benefits $ 22,634 $ 20,783 $ 1,851 8.91 % $ 20,783 $ 17,385 $ 3,398 19.55 % Furniture and equipment 1,278 1,070 208 19.44 % 1,070 995 75 7.54 % Occupancy 2,580 2,640 (60 ) -2.27 % 2,640 2,689 (49 ) -1.82 % Data and item processing 2,128 1,897 231 12.18 % 1,897 1,730 167 9.65 % Accounting, marketing, and legal fees 757 836 (79 ) -9.45 % 836 543 293 53.96 % Regulatory assessments 814 1,196 (382 ) -31.94 % 1,196 1,537 (341 ) -22.19 % Advertising and public relations 917 549 368 67.03 % 549 427 122 28.57 % Travel, lodging and entertainment 439 431 8 1.86 % 431 374 57 15.24 % Other expense 7,364 7,693 (329 ) -4.28 % 7,693 7,740 (47 ) -0.61 % Total noninterest expense $ 38,911 $ 37,095 $ 1,816 4.90 % $ 37,095 $ 33,420 $ 3,675 11.00 % For the year ended December 31, 2025 compared to the year ended December 31, 2024: - Salaries and employee benefits expense was $22.6 million compared to $20.8 million, an increase of $1.9 million, or 8.9%. The increase was primarily attributable to overall increases in compensation due to the performance of the Company and to remain competitive. For the year ended December 31, 2024 compared to the year ended December 31, 2023: - Salaries and employee benefits expense was $20.8 million compared to $17.4 million, an increase of $3.4 million, or 19.6%. The increase was primarily attributable to overall increases in compensation due to the performance of the Company and to remain competitive. 27 Table of Contents Financial Condition The following discussion of our financial condition compares December 31, 2025, 2024, and 2023. Total Assets Total assets increased $223.8 million, or 12.9%, to $1.96 billion as of December 31, 2025, as compared to $1.74 billion as of December 31, 2024 and $1.77 billion as of December 31, 2023. Loan Portfolio Our loans represent the largest portion of our earning assets. The quality and diversification of the loan portfolio is an important consideration when reviewing our financial condition. As of December 31, 2025, 2024, and 2023, our gross loans were $1.61 billion, $1.40 billion and $1.36 billion, respectively. The following table presents the balance and associated percentage of each major category in our loan portfolio as of December 31, 2025, December 31, 2024 and December 31, 2023: As of December 31, 2025 2024 2023 Amount % of Total Amount % of Total Amount % of Total (Dollars in thousands) Construction & development $ 224,566 14.0 % $ 167,685 12.0 % $ 137,206 10.1 % 1-4 family real estate 126,122 7.8 % 121,047 8.7 % 100,576 7.4 % Commercial real estate - other 587,597 36.5 % 511,304 36.5 % 518,622 38.0 % Total commercial real estate 938,285 58.3 % 800,036 57.2 % 756,404 55.5 % Commercial & industrial 567,280 35.2 % 507,023 36.2 % 526,185 38.5 % Agricultural 90,908 5.7 % 77,922 5.6 % 66,495 4.9 % Consumer 12,894 0.8 % 14,312 1.0 % 14,517 1.1 % Gross loans 1,609,367 100.0 % 1,399,293 100.0 % 1,363,601 100.0 % Less: unearned income, net (2,936 ) (1,910 ) (2,762 ) Total Loans, net of unearned income 1,606,431 1,397,383 1,360,839 Less: Allowance for credit losses (19,407 ) (17,918 ) (19,691 ) Net loans $ 1,587,024 $ 1,379,465 $ 1,341,148 We have established internal concentration limits in the loan portfolio for CRE loans, hospitality loans, energy loans, and construction loans, among others. All loan types are within our established limits. We use underwriting guidelines to assess each borrower’s historical cash flow to determine debt service, and we further stress test the debt service under higher interest rate scenarios. Financial and performance covenants are used in commercial lending to allow us to react to a borrower’s deteriorating financial condition, should that occur. Discussion of credit risk as it relates to commercial lending, which is primarily comprised of hospitality and energy loans, is discussed under Item 1A. Risk Factors. 28 Table of Contents The following tables show the contractual maturities of our gross loans as of the periods below: As of December 31, 2025 Due after One Year Due after Five Years Due in One Year or Less Through Five Years Through Fifteen Years Due after Fifteen Years Fixed Adjustable Fixed Adjustable Fixed Adjustable Fixed Adjustable Total Rate Rate Rate Rate Rate Rate Rate Rate (Dollars in thousands) Construction & development $ 638 $ 116,658 $ 10,497 $ 95,444 $ - $ 399 $ 930 $ - $ 224,566 1-4 family real estate 7,281 21,031 32,503 56,599 775 5,533 2,400 - 126,122 Commercial real estate - other 22,817 41,301 66,266 412,436 139 38,515 6,123 - 587,597 Total commercial real estate 30,736 178,990 109,266 564,479 914 44,447 9,453 - 938,285 Commercial & industrial 47,266 293,406 14,097 173,586 107 38,246 572 - 567,280 Agricultural 31,633 10,926 6,560 37,162 - 3,253 1,374 - 90,908 Consumer 1,747 2 4,866 258 806 3,714 1,501 - 12,894 Gross loans $ 111,382 $ 483,324 $ 134,789 $ 775,485 $ 1,827 $ 89,660 $ 12,900 $ - $ 1,609,367 As of December 31, 2024 Due after One Year Due after Five Years Due in One Year or Less Through Five Years Through Fifteen Years Due after Fifteen Years Fixed Adjustable Fixed Adjustable Fixed Adjustable Fixed Adjustable Total Rate Rate Rate Rate Rate Rate Rate Rate (Dollars in thousands) Construction & development $ 9,378 $ 76,709 $ 2,050 $ 78,786 $ - $ 564 $ 198 $ - $ 167,685 1-4 family real estate 15,426 20,085 43,558 31,566 964 4,826 4,622 - 121,047 Commercial real estate - other 47,737 61,482 103,484 271,156 153 18,303 8,989 - 511,304 Total commercial real estate 72,541 158,276 149,092 381,508 1,117 23,693 13,809 - 800,036 Commercial & industrial 36,062 263,026 13,639 175,729 8,232 9,738 597 - 507,023 Agricultural 22,768 8,991 16,581 26,677 - 1,054 1,851 - 77,922 Consumer 1,661 4 5,641 170 602 3,570 2,664 - 14,312 Gross loans $ 133,032 $ 430,297 $ 184,953 $ 584,084 $ 9,951 $ 38,055 $ 18,921 $ - $ 1,399,293 As of December 31, 2023 Due after One Year Due after Five Years Due in One Year or Less Through Five Years Through Fifteen Years Due after Fifteen Years Fixed Adjustable Fixed Adjustable Fixed Adjustable Fixed Adjustable Total Rate Rate Rate Rate Rate Rate Rate Rate (Dollars in thousands) Construction & development $ 11,431 $ 70,040 $ 8,970 $ 44,935 $ - $ 1,438 $ 392 $ - $ 137,206 1-4 family real estate 13,628 13,015 41,602 21,451 26 5,443 5,411 - 100,576 Commercial real estate - other 50,251 65,120 152,250 219,260 129 21,283 10,329 - 518,622 Total real estate 75,310 148,175 202,822 285,646 155 28,164 16,132 - 756,404 Commercial & industrial 20,389 263,564 41,520 186,776 3,276 10,041 619 - 526,185 Agricultural 13,250 22,615 13,935 13,032 - 810 2,853 - 66,495 Consumer 2,170 14 5,490 121 595 3,604 2,523 - 14,517 Gross loans $ 111,119 $ 434,368 $ 263,767 $ 485,575 $ 4,026 $ 42,619 $ 22,127 $ - $ 1,363,601 29 Table of Contents Allowance for Credit Losses The allowance is based on management’s estimate of probable losses in the loan portfolio. In the opinion of management, the allowance is adequate to absorb estimated losses in the portfolio as of each balance sheet date. While management uses available information to analyze losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance. In analyzing the adequacy of the allowance, a comprehensive loan grading system to determine risk potential in loans is utilized together with the results of internal credit reviews. To determine the adequacy of the allowance, the loan portfolio is broken into segments based on loan type. Historical loss experience factors by segment, adjusted for changes in trends and conditions, are used to determine an indicated allowance for each portfolio segment. These factors are evaluated and updated based on the composition of the specific loan segment. Other considerations include volumes and trends of delinquencies, nonaccrual loans, levels of bankruptcies, criticized and classified loan trends, expected losses on real estate secured loans, new credit products and policies, economic conditions, concentrations of credit risk and the experience and abilities of our lending personnel. In addition to the segment evaluations, substandard loans with a balance of $250,000 or more are individually evaluated based on facts and circumstances of the loan to determine if a specific allowance amount may be necessary. Specific allowances may also be established for loans whose outstanding balances are below the $250,000 threshold when it is determined that the risk associated with the loan differs significantly from the risk factor amounts established for its loan segment. The allowance was $19.4 million at December 31, 2025, $17.9 million at December 31, 2024 and $19.7 million at December 31, 2023.  See the 2025 Overview for further discussion regarding management’s ongoing assessment of the adequacy of the allowance. The following table provides an analysis of the activity in our allowance for the periods indicated: As of December 31, 2025 2024 2023 (Dollars in thousands) Balance at beginning of the period $ 17,918 $ 19,691 $ 14,734 Impact of CECL adoption - - 250 Provision for credit losses for loans 700 - 21,181 Charge-offs: Construction & development - - - 1-4 family real estate - - - Commercial real estate - other (197 ) (275 ) - Commercial & industrial - (2,000 ) (16,500 ) Agricultural - - (7 ) Consumer (3 ) - (17 ) Total charge-offs (200 ) (2,275 ) (16,524 ) Recoveries: Construction & development - - - 1-4 family real estate - - - Commercial real estate - other 17 - - Commercial & industrial 965 495 40 Agricultural 4 7 2 Consumer 3 - 8 Total recoveries 989 502 50 Net recoveries (charge-offs) 789 (1,773 ) (16,474 ) Balance at end of the period $ 19,407 $ 17,918 $ 19,691 Net recoveries (charge-offs) to average loans 0.05 % -0.13 % -1.25 % 30 Table of Contents While the entire allowance is available to absorb losses from any and all loans, the following table represents management’s allocation of the allowance by loan category, and the percentage of allowance in each category, for the periods indicated: As of December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent (Dollars in thousands) Construction & development $ 1,222 6.3 % $ 1,223 6.8 % $ 1,417 7.2 % 1-4 family real estate 964 5.0 % 1,313 7.3 % 1,271 6.5 % Commercial real estate - other 6,855 35.3 % 6,992 39.0 % 6,889 35.0 % Commercial & industrial 9,369 48.2 % 6,797 38.0 % 9,237 46.8 % Agricultural 612 3.2 % 1,106 6.2 % 628 3.2 % Consumer 385 2.0 % 487 2.7 % 249 1.3 % Total $ 19,407 100.0 % $ 17,918 100.0 % $ 19,691 100.0 % 31 Table of Contents Nonaccrual Loans and Nonperforming Assets Loans are considered delinquent when principal or interest payments are past due 30 days or more. Delinquent loans may remain on accrual status between 30 days and 90 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Typically, the accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability of the obligation. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on a nonaccrual loan is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are restored to accrual status when loans become well-secured and management believes full collectability of principal and interest is probable. Loans are evaluated for expected credit losses over their contractual term, reflecting management’s current estimate.  Loans placed on nonaccrual status and loan modifications granted to borrowers experiencing financial difficulty are considered to have elevated credit risk and are carefully considered within our current expected credit loss methodology.  Depending on a particular loan’s risk characteristics, we estimate expected credit losses using methods such as present value of expected future cash flows discounted at the loan’s effective interest rate, observable market prices for similar assets if available, or the fair value of collateral less estimated costs to sell for collateral-dependent loans. A loan is considered collateral-dependent when the expected source of repayment is primarily the liquidation of the collateral. Fair value, where utilized, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the estimated fair value may be adjusted based on specific events, such as identified deterioration of collateral quality through our credit risk monitoring, or discussions with the borrower indicating the appraised value may no longer reflect current market conditions. The estimated credit losses are recognized as an allowance for credit losses, which is a valuation account. Changes in the allowance for credit losses, whether increases or decreases, are recorded in current period earnings as provision for credit losses. Real estate we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned, or OREO, until sold, and is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Nonperforming loans include nonaccrual loans and loans past due 90 days or more and still accruing interest. Nonperforming assets consist of nonperforming loans plus OREO. Loans accounted for on a nonaccrual basis were $6.5 million as of December 31, 2025, $7.2 million as of December 31, 2024, and $18.9 million as of December 31, 2023. OREO was $461,000, $321,000, and $0 as of December 31, 2025, December 31, 2024, and December 31, 2023, respectively. The following table presents information regarding nonperforming assets as of the dates indicated: As of December 31, 2025 2024 2023 (Dollars in thousands) Nonaccrual loans(1) $ 6,460 $ 7,170 $ 18,941 Accruing loans 90 or more days past due - - 10,026 Total nonperforming assets(2) $ 6,460 $ 7,170 $ 28,967 Ratio of nonperforming loans to total loans 0.40 % 0.51 % 2.13 % Ratio of nonaccrual loans to total loans 0.40 % 0.51 % 1.39 % Ratio of allowance for credit losses to total loans 1.21 % 1.28 % 1.45 % Ratio of allowance for credit losses to nonaccrual loans 300.42 % 249.90 % 103.96 % Ratio of nonperforming assets to total assets 0.33 % 0.41 % 1.64 % (1) There are no loans modified to borrowers experiencing financial difficulty included in nonaccrual loans as of December 31, 2025 and December 31, 2024, respectively. (2) Excludes OREO of $461,000, $321,000, and $0 as of December 31, 2025, 2024, and 2023, respectively, as the balances are not considered material for separate disclosure. 32 Table of Contents The following tables present an aging analysis of loans as of the dates indicated. As of December 31, 2025 Loans 30-59 days past due Loans 60-89 days past due Loans 90+ days past due Loans 90+ days past due and accruing Total past due loans Current Gross loans (Dollars in thousands) Construction & development $ 79 $ - $ - $ - $ 79 $ 224,487 $ 224,566 1-4 family real estate 47 - - - 47 126,075 126,122 Commercial real estate - other - 1,423 - - 1,423 586,174 587,597 Commercial & industrial 1,702 80 3,429 - 5,211 562,069 567,280 Agricultural - - - - - 90,908 90,908 Consumer 30 - - - 30 12,864 12,894 Total $ 1,858 $ 1,503 $ 3,429 $ - $ 6,790 $ 1,602,577 $ 1,609,367 As of December 31, 2024 Loans 30-59 days past due Loans 60-89 days past due Loans 90+ days past due Loans 90+ days past due and accruing Total Past Due Loans Current Gross loans (Dollars in thousands) Construction & development $ - $ - $ - $ - $ - $ 167,685 $ 167,685 1-4 family real estate - - - - - 121,047 121,047 Commercial real estate - other 103 - 3,426 - 3,529 507,775 511,304 Commercial & industrial 403 5 - - 408 506,615 507,023 Agricultural - - - - - 77,922 77,922 Consumer 97 - - - 97 14,215 14,312 Total $ 603 $ 5 $ 3,426 $ - $ 4,034 $ 1,395,259 $ 1,399,293 As of December 31, 2023 Loans 30-59 days past due Loans 60-89 days past due Loans 90+ days past due Loans 90+ days past due and accruing Total Past Due Loans Current Gross loans (Dollars in thousands) Construction & development $ - $ - $ - $ - $ - $ 137,206 $ 137,206 1-4 family commercial - - - - - 100,576 100,576 Commercial real estate - other - - - - - 518,622 518,622 Commercial & industrial 472 10,969 9,946 9,946 21,387 504,798 526,185 Agricultural - - - - - 66,495 66,495 Consumer - 27 80 80 107 14,410 14,517 Total $ 472 $ 10,996 $ 10,026 $ 10,026 $ 21,494 $ 1,342,107 $ 1,363,601 In addition to the past due and nonaccrual criteria, the Company also evaluates loans according to its internal risk grading system. Loans are segregated between pass, watch, special mention, and substandard categories. The definitions of those categories are as follows: Pass: These loans generally conform to Bank policies, are characterized by policy-conforming advance rates on collateral, and have well-defined repayment sources. In addition, these credits are extended to borrowers and guarantors with a strong balance sheet and either substantial liquidity or a reliable income history. Watch: These loans are still considered “Pass” credits; however, various factors such as industry stress, material changes in cash flow or financial conditions, or deficiencies in loan documentation, or other risk issues determined by the lending officer, Commercial Loan Committee or Credit Quality Committee warrant a heightened sense and frequency of monitoring. Special mention: These loans have observable weaknesses or evidence imprudent handling or structural issues. The weaknesses require close attention, and the remediation of those weaknesses is necessary. No risk of probable loss exists. Credits in this category are expected to quickly migrate to “Watch” or “Substandard” as this is viewed as a transitory loan grade. Substandard: These loans are not adequately protected by the sound worth and debt service capacity of the borrower, but may be well-secured. The loans have defined weaknesses relative to cash flow, collateral, financial condition or other factors that might jeopardize repayment of all of the principal and interest on a timely basis. There is the possibility that a future loss will occur if weaknesses are not remediated. 33 Table of Contents Substandard loans totaled $7.9 million as of December 31, 2025, a decrease of $7.3 million compared to December 31, 2024. Substandard loans totaled $15.2 million as of December 31, 2024, a decrease of $15.9 million compared to December 31, 2023. The total net decrease in substandard loans in 2025 as compared to 2024, is comprised of a net decrease in commercial and industrial substandard loans primarily related to one note totaling $3.9 million with no specific reserve, and a net decrease in commercial real estate primarily related to one note totaling $3.0 million with a $0.2 million specific reserve. Outstanding loan balances categorized by internal risk grades as of the periods indicated are summarized as follows: As of December 31, 2025 Pass Watch Special mention Substandard Total (Dollars in thousands) Construction & development $ 222,688 $ - $ 1,323 $ 555 $ 224,566 1-4 family real estate 126,122 - - - 126,122 Commercial real estate - other 561,134 18,077 6,893 1,493 587,597 Commercial & industrial 505,252 37,285 18,908 5,835 567,280 Agricultural 87,129 - 3,779 - 90,908 Consumer 12,894 - - - 12,894 Total $ 1,515,219 $ 55,362 $ 30,903 $ 7,883 $ 1,609,367 As of December 31, 2024 Pass Watch Special mention Substandard Total (Dollars in thousands) Construction & development $ 165,863 $ - $ 1,259 $ 563 $ 167,685 1-4 family real estate 121,047 - - - 121,047 Commercial real estate - other 498,835 - 7,493 4,976 511,304 Commercial & industrial 493,512 - 3,817 9,694 507,023 Agricultural 74,896 - 3,026 - 77,922 Consumer 14,312 - - - 14,312 Total $ 1,368,465 $ - $ 15,595 $ 15,233 $ 1,399,293 As of December 31, 2023 Pass Watch Special mention Substandard Total (Dollars in thousands) Construction & development $ 136,417 $ - $ 789 $ - $ 137,206 1-4 family real estate 100,576 - - - 100,576 Commercial real estate - other 502,795 - 15,701 126 518,622 Commercial & industrial 485,433 4,094 5,767 30,891 526,185 Agricultural 66,495 - - - 66,495 Consumer 14,437 - - 80 14,517 Total $ 1,306,153 $ 4,094 $ 22,257 $ 31,097 $ 1,363,601 34 Table of Contents Deposits We gather deposits primarily through our twelve branch locations and online through our website. We offer a variety of deposit products including demand deposit accounts and interest-bearing products, such as savings accounts and certificates of deposit. We put continued effort into gathering noninterest-bearing demand deposit accounts through loan production cross-selling, customer referrals, marketing efforts and various involvement with community networks. Some of our interest-bearing deposits were obtained through brokered transactions. We participate in the CDARS program, where customer funds are placed into multiple certificates of deposit, each in an amount under the standard FDIC insurance maximum of $250,000, and placed at a network of banks across the United States.  We also participate in the One-Way Buy Insured Cash Sweep service and similar services, which provide for one-way buy transactions among banks for the purpose of purchasing cost-effective floating-rate funding without collateralization or stock purchase requirements. Of our interest-bearing deposits, some were obtained through brokered transactions. As of December 31, 2025, 2024, and 2023, brokered deposits were $205.6 million, $225.5 million, and $50.1 million, respectively. To manage liquidity and provide insurance for customer funds, the Company participates in reciprocal deposit programs, such as CDARS and ICS. At December 31, 2025, reciprocal deposits totaled $576.5 million. Uninsured deposits are defined as the portion of deposit accounts in U.S. offices that exceed the FDIC insurance limit and amounts in any other uninsured investment or deposit account that are classified as deposits and are not subject to any federal or state deposit insurance regimes. Total uninsured deposits were $391.7 million and $354.2 million as of December 31, 2025 and December 31, 2024, respectively, as calculated per regulatory guidance. This was approximately 23.2% and 23.4% of deposits as of December 31, 2025 and December 31, 2024, respectively. Total deposits as of December 31, 2025, 2024, and 2023 were $1.70 billion, $1.52 billion and $1.59 billion, respectively. The following table sets forth deposit balances by certain categories as of the dates indicated and the percentage of each deposit category to total deposits. For the Year Ended December 31, 2025 2024 2023 Amount Percentage of Total Amount Percentage of Total Amount Percentage of Total (Dollars in thousands) Noninterest-bearing demand $ 341,416 20.07 % $ 313,258 20.70 % $ 482,349 30.40 % Interest-bearing transaction deposits 1,023,325 60.17 % 889,679 58.70 % 702,150 44.10 % Savings deposits 92,604 5.44 % 73,379 4.80 % 150,116 9.40 % Time deposits (less than $250,000) 147,263 8.66 % 146,814 9.70 % 168,690 10.60 % Time deposits ($250,000 or more) 96,225 5.66 % 92,341 6.10 % 88,086 5.50 % Total interest-bearing deposits 1,359,417 79.9 % 1,202,213 79.3 % 1,109,042 69.6 % Total deposits $ 1,700,833 100.0 % $ 1,515,471 100.0 % $ 1,591,391 100.0 % The following table summarizes our average deposit balances and weighted average rates for the years ended December 31, 2025, 2024, and 2023: For the Year Ended December 31, 2025 2024 2023 Average Balance Weighted Average Rate Average Balance Weighted Average Rate Average Balance Weighted Average Rate (Dollars in thousands) Noninterest-bearing demand $ 317,743 0.00 % $ 381,660 0.00 % $ 433,603 0.00 % Interest-bearing transaction deposits 941,181 3.16 % 776,141 3.81 % 705,891 3.42 % Savings deposits 79,878 1.88 % 106,173 3.63 % 119,278 3.74 % Time deposits 237,548 3.99 % 254,057 4.69 % 256,672 4.06 % Total interest-bearing deposits 1,258,607 3.25 % 1,136,371 3.98 % 1,081,841 3.60 % Total deposits $ 1,576,350 2.59 % $ 1,518,031 2.99 % $ 1,515,444 2.57 % 35 Table of Contents The following tables set forth the maturity of time deposits as of the dates indicated below: As of December 31, 2025 Maturity Within: Three Months Three to Six Months Six to 12 Months After 12 Months Total (Dollars in thousands) Time deposits (less than $250,000) $ 56,951 $ 45,791 $ 37,766 $ 6,755 $ 147,263 Time deposits ($250,000 or more) 37,413 21,015 20,278 17,519 96,225 Total time deposits $ 94,364 $ 66,806 $ 58,044 $ 24,274 $ 243,488 As of December 31, 2024 Maturity Within: Three Months Three to Six Months Six to 12 Months After 12 Months Total (Dollars in thousands) Time deposits (less than $250,000) $ 62,577 $ 38,514 $ 41,345 $ 4,378 $ 146,814 Time deposits ($250,000 or more) 45,667 25,552 18,055 3,067 92,341 Total time deposits $ 108,244 $ 64,066 $ 59,400 $ 7,445 $ 239,155 Liquidity Liquidity refers to the measure of our ability to meet the cash flow requirements of depositors and borrowers, while at the same time meeting our operating, capital and strategic cash flow needs, all at a reasonable cost. We continuously monitor our liquidity position to ensure that assets and liabilities are managed in a manner that will meet all short-term and long-term cash requirements. We manage our liquidity position to meet the daily cash flow needs of customers, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our shareholders. Our liquidity position is supported by management of liquid assets and access to alternative sources of funds. Our liquid assets include cash, interest-bearing deposits in correspondent banks and fed funds sold. Other available sources of liquidity include wholesale deposits and borrowings from correspondent banks and FHLB advances. Our short-term and long-term liquidity requirements are primarily met through cash flow from operations, redeployment of prepaying and maturing balances in our loan portfolios, and increases in customer deposits. Other alternative sources of funds will supplement these primary sources to the extent necessary to meet additional liquidity requirements on either a short-term or long-term basis. As of December 31, 2025, we had no unsecured fed funds lines with correspondent depository institutions with no amounts advanced. In addition, based on the values of loans pledged as collateral, we had borrowing availability with the FHLB of $213.8 million as of December 31, 2025 and $190.9 million as of December 31, 2024, and we had access to approximately $288.6 million in liquidity with the Federal Reserve Bank as of December 31, 2025 and $336.1 million as of December 31, 2024. 36 Table of Contents Capital Requirements The Bank is subject to various regulatory capital requirements administered by the federal and state banking regulators. Failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action” (described below), the Bank must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. The capital amounts and classifications are subject to qualitative judgments by the federal banking regulators about components, risk weightings and other factors. Qualitative measures established by regulation to ensure capital adequacy required the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, or CET1, capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets, referred to as the “leverage ratio.” For further information, see “Supervision and Regulation – Regulatory Capital Requirements” and “Supervision and Regulation – Prompt Corrective Action Framework.” In the wake of the global financial crisis of 2008 and 2009, the role of capital has become fundamentally more important, as banking regulators have concluded that the amount and quality of capital held by banking organizations was insufficient to absorb losses during periods of severely distressed economic conditions. The Dodd-Frank Act and banking regulations promulgated by the U.S. federal banking regulators to implement Basel III have established strengthened capital standards for banks and bank holding companies and require more capital to be held in the form of common stock. In addition, the Basel III regulations implement a concept known as the “capital conservation buffer.” In general, banks, bank holding companies with more than $3.0 billion in assets and bank holding companies with publicly-traded equity are required to hold a buffer of CET1 capital equal to 2.5% of risk-weighted assets over each minimum capital ratio in order to avoid being subject to limits on capital distributions (e.g., dividends, stock buybacks, etc.) and certain discretionary bonus payments to executive officers. As of December 31, 2025, the FDIC categorized the Bank as “well-capitalized” under the prompt corrective action framework. There have been no conditions or events since December 31, 2025 that management believes would change this classification. 37 Table of Contents The table below also summarizes the capital requirements applicable to the Bank in order to be considered “well-capitalized” from a regulatory perspective, as well as the Bank’s capital ratios as of December 31, 2025, 2024, and 2023. The Bank exceeded all regulatory capital requirements under Basel III and the Bank was considered to be “well-capitalized” as of the dates reflected in the tables below. Actual With Capital Conservation Buffer Minimum to be “Well- Capitalized” Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2025 Total capital (to risk-weighted assets) Company $ 261,451 15.24 % $ 180,076 10.50 % N/A N/A Bank 261,411 15.25 % 179,970 10.50 % $ 171,400 10.00 % Tier 1 capital (to risk-weighted assets) Company 241,580 14.09 % 145,776 8.50 % N/A N/A Bank 241,540 14.09 % 145,690 8.50 % 137,120 8.00 % CET 1 capital (to risk-weighted assets) Company 241,580 14.09 % 120,051 7.00 % N/A N/A Bank 241,540 14.09 % 119,980 7.00 % 111,410 6.50 % Tier 1 capital (to average assets) Company 241,580 12.82 % N/A N/A N/A N/A Bank 241,540 12.82 % N/A N/A 94,213 5.00 % Actual With Capital Conservation Buffer Minimum to be “Well- Capitalized” Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2024 Total capital (to risk-weighted assets) Company $ 227,229 15.21 % $ 156,830 10.50 % N/A N/A Bank 227,189 15.22 % 156,723 10.50 % $ 149,260 10.00 % Tier 1 capital (to risk-weighted assets) Company 208,847 13.98 % 126,957 8.50 % N/A N/A Bank 208,807 13.99 % 126,871 8.50 % 119,408 8.00 % CET 1 capital (to risk-weighted assets) Company 208,847 13.98 % 104,553 7.00 % N/A N/A Bank 208,807 13.99 % 104,482 7.00 % 97,019 6.50 % Tier 1 capital (to average assets) Company 208,847 12.19 % N/A N/A N/A N/A Bank 208,807 12.18 % N/A N/A 85,698 5.00 % Actual With Capital Conservation Buffer Minimum to be “Well- Capitalized” Under Prompt Corrective Action Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2023 Total capital (to risk-weighted assets) Company $ 185,171 12.74 % $ 152,579 10.50 % N/A N/A Bank 185,118 12.75 % 152,472 10.50 % $ 145,211 10.00 % Tier 1 capital (to risk-weighted assets) Company 166,982 11.49 % 123,516 8.50 % N/A N/A Bank 166,942 11.50 % 123,429 8.50 % 116,169 8.00 % CET 1 capital (to risk-weighted assets) Company 166,982 11.49 % 101,719 7.00 % N/A N/A Bank 166,942 11.50 % 101,648 7.00 % 94,387 6.50 % Tier 1 capital (to average assets) Company 166,982 9.50 % N/A N/A N/A N/A Bank 166,942 9.50 % N/A N/A 87,897 5.00 % 38 Table of Contents Shareholders’ equity provides a source of permanent funding, allows for future growth and provides a cushion to withstand unforeseen adverse developments. Total shareholders’ equity increased to $251.0 million as of December 31, 2025, compared to $213.2 million as of December 31, 2024 and $170.3 million as of December 31, 2023. The increases were driven by retained capital from net income during the periods. Contractual Obligations The following tables contain supplemental information regarding our total contractual obligations as of December 31, 2025 and December 31, 2024: Payments Due as of December 31, 2025 Within One Year One to Three Years Three to Five Years After Five Years Total (Dollars in thousands) Deposits without a stated maturity $ 1,457,345 $ - $ - $ - $ 1,457,345 Time deposits 219,214 23,893 381 - 243,488 Operating lease commitments 621 798 368 359 2,146 Total contractual obligations $ 1,677,180 $ 24,691 $ 749 $ 359 $ 1,702,979 Payments Due as of December 31, 2024 Within One Year One to Three Years Three to Five Years After Five Years Total (Dollars in thousands) Deposits without a stated maturity $ 1,276,316 $ - $ - $ - $ 1,276,316 Time deposits 231,710 6,746 699 - 239,155 Operating lease commitments 646 516 236 476 1,874 Total contractual obligations $ 1,508,672 $ 7,262 $ 935 $ 476 $ 1,517,345 We believe that we will be able to meet our contractual obligations as they come due through the maintenance of adequate cash levels. We expect to maintain adequate cash levels through profitability, loan repayment and maturity activity and continued deposit gathering activities. We have in place various borrowing mechanisms for both short-term and long-term liquidity needs. Off-Balance Sheet Arrangements We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.  To control this credit risk, the Company uses the same underwriting standards as it uses for loans recorded on the balance sheet. Loan commitments are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of the customer to a third party. They are intended to be disbursed, subject to certain conditions, upon request of the borrower. The following table summarizes commitments as of the dates presented: As of December 31, 2025 2024 2023 (Dollars in thousands) Commitments to extend credit $ 324,748 $ 272,261 $ 256,888 Standby letters of credit 19,540 11,333 4,247 Total $ 344,288 $ 283,594 $ 261,135 39 Table of Contents Critical Accounting Policies and Estimates Our accounting and reporting policies conform to GAAP and conform to general practices within the industry in which we operate. To prepare financial statements in conformity with GAAP, management makes estimates, assumptions and judgments based on available information. These estimates, assumptions and judgments affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions and judgments are based on information available as of the date of the financial statements and, as this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the financial statement. In particular, management has identified several accounting policies that, due to the estimates, assumptions and judgments inherent in those policies, are critical in understanding our financial statements. The following is a discussion of the critical accounting policies and significant estimates that we believe require us to make the most complex or subjective decisions or assessments. Additional information about these policies can be found in Note 1 of the Company’s consolidated financial statements included in the Annual Report on the Form 10-K. Allowance for Credit Losses The allowance is based on management’s estimate of probable losses inherent in the loan portfolio. In the opinion of management, the allowance is adequate to absorb estimated losses in the portfolio as of each balance sheet date. While management uses available information to analyze losses on loans, future additions to the allowance may be necessary based on changes in economic conditions and changes in the composition of the loan portfolio. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance. In analyzing the adequacy of the allowance, a comprehensive loan grading system to determine risk potential in loans is utilized together with the results of internal credit reviews. To estimate the allowance for credit losses, the loan portfolio is segmented based on shared risk characteristics, primarily by loan type.  Historical credit loss experience for each segment, adjusted for relevant current conditions and reasonable and supportable forecasts, is a significant input in determining the expected credit losses for each portfolio segment under the current expected credit loss methodology. These historical loss factors and adjustments are regularly evaluated and updated based on the evolving composition of each loan segment.  Other considerations in our current expected credit loss estimation process include current volumes and trends of delinquencies, nonaccrual loans, levels of bankruptcies, trends in criticized and classified loans, expected losses on real estate secured loans, impact of new credit products and policies, current and forecasted economic conditions, concentrations of credit risk, and the experience and abilities of our lending personnel in the current environment.  In addition to these segment-level estimations, loans with larger balances or unique risk profiles may be further analyzed based on specific facts and circumstances to refine the overall expected credit loss estimate.  This individual analysis helps ensure the allowance for credit losses appropriately reflects the expected losses inherent in the portfolio.  Adjustments to the segment-level or portfolio-level expected credit loss estimates may be necessary when specific loan characteristics warrant a different loss expectation than indicated by the segment risk factors. 40 Table of Contents