Bank7 Corp. (BSVN)

CIK: 0001746129. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-03-17.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1746129. Latest filing source: 0001140361-26-009657.

Selected Fundamentals

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.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

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.

Financial Charts

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.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001140361-26-020594.

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.

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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.

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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%.

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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.

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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. Filing date: 2026-03-17. Report date: 2025-12-31.

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.

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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.

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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
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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
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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
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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
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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
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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
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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

%

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Table
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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.

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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.

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Table
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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

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Table
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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

%

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Table
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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.

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Table
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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.

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Table
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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

%

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Table
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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

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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.

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