UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2025

OR

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number 001-34095

FIRST BUSINESS FINANCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Wisconsin	39-1576570
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

401 Charmany Drive		53719
Madison	Wisconsin
(Address of Principal Executive Offices)		(Zip Code)

(608) 238-8008

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FBIZ	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer þ Non-accelerated filer ¨ Smaller reporting company ¨ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares outstanding of the registrant’s sole class of common stock, par value $0.01 per share, on October 27, 2025 was 8,324,258 shares.

FIRST BUSINESS FINANCIAL SERVICES, INC.

INDEX — FORM 10-Q

PART I. Financial Information	1
Item 1. Financial Statements	1
Consolidated Balance Sheets (Unaudited)	1
Consolidated Statements of Income (Unaudited)	2
Consolidated Statements of Comprehensive Income (Unaudited)	3
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	6
Notes to Unaudited Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3. Quantitative and Qualitative Disclosures about Market Risk	59
Item 4. Controls and Procedures	59
PART II. Other Information	61
Item 1. Legal Proceedings	61
Item 1A. Risk Factors	61
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 5. Other Information	61
Item 6. Exhibits	62
Signatures	63

PART I. Financial Information

Item 1. Financial Statements

First Business Financial Services, Inc.

Consolidated Balance Sheets (Unaudited)

	September 30, 2025			December 31, 2024
	(Unaudited)
	(In Thousands, Except Share Data)
Assets
Cash and due from banks	$	36,275		$	29,495
Short-term investments		8,074			128,207
Cash and cash equivalents		44,349			157,702
Securities available-for-sale, at fair value		411,111			341,392
Securities held-to-maturity, at amortized cost		5,584			6,741
Loans held for sale		13,482			13,498
Loans and leases receivable, net of allowance for credit losses of $36,690    and $35,785, respectively		3,298,266			3,077,343
Premises and equipment, net		4,936			5,227
Repossessed assets		—			51
Right-of-use assets, net		5,577			5,702
Bank-owned life insurance		83,255			57,210
Federal Home Loan Bank stock, at cost		9,605			11,616
Goodwill and other intangible assets		12,041			11,912
Derivatives		37,634			65,762
Accrued interest receivable and other assets		109,005			99,059
Total assets	$	4,034,845		$	3,853,215
Liabilities and Stockholders’ Equity
Deposits	$	3,333,071		$	3,107,140
Federal Home Loan Bank advances and other borrowings		266,677			320,049
Lease liabilities		7,687			7,926
Derivatives		38,726			57,068
Accrued interest payable and other liabilities		30,365			32,443
Total liabilities		3,676,526			3,524,626
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,500,000 shares authorized, 12,500 shares of 7%    non-cumulative perpetual preferred stock, Series A, outstanding at    September 30, 2025 and December 31, 2024		11,992			11,992
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,491,981 and 9,433,637    shares issued, 8,324,387 and 8,293,928 shares outstanding at September 30, 2025    and December 31, 2024, respectively		96			95
Additional paid-in capital		95,814			93,545
Retained earnings		294,837			265,778
Accumulated other comprehensive loss		(11,650	)		(11,425	)
Treasury stock, 1,167,594 and 1,139,709 shares at September 30, 2025    and December 31, 2024, respectively, at cost		(32,770	)		(31,396	)
Total stockholders’ equity		358,319			328,589
Total liabilities and stockholders’ equity	$	4,034,845		$	3,853,215

See accompanying Notes to Unaudited Consolidated Financial Statements.

1

First Business Financial Services, Inc.

Consolidated Statements of Income (Unaudited)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(In Thousands, Except Per Share Data)
Interest income
Loans and leases	$	58,500	$	55,506	$	170,395	$	160,947
Securities		4,011		2,976		11,199		8,823
Short-term investments		1,235		845		2,964		3,250
Total interest income		63,746		59,327		184,558		173,020
Interest expense
Deposits		26,338		25,290		73,611		73,802
Federal Home Loan Bank advances and other borrowings		2,522		3,030		9,019		8,159
Total interest expense		28,860		28,320		82,630		81,961
Net interest income		34,886		31,007		101,928		91,059
Provision for credit losses		1,440		2,087		6,800		6,126
Net interest income after provision for credit losses		33,446		28,920		95,128		84,933
Non-interest income
Private wealth management service fees		3,687		3,264		10,928		9,835
Gain on sale of Small Business Administration loans		382		460		1,742		1,004
Service charges on deposits		1,151		920		3,303		2,810
Loan fees		501		812		1,313		2,486
Bank-owned life insurance income		965		416		2,016		1,231
Net loss on sale of securities		—		—		—		(8	)
Swap fees		974		460		1,257		815
Other non-interest income		1,980		732		3,916		3,073
Total non-interest income		9,640		7,064		24,475		21,246
Non-interest expense
Compensation		17,442		15,198		50,723		47,570
Occupancy		567		585		1,721		1,785
Professional fees		1,071		1,305		4,016		4,348
Data processing		1,123		1,045		3,574		3,245
Marketing		876		922		2,906		2,591
Equipment		296		333		1,007		1,013
Computer software		1,826		1,608		5,085		4,581
FDIC insurance		817		810		2,432		2,032
Other non-interest expense		1,682		1,301		3,924		3,164
Total non-interest expense		25,700		23,107		75,388		70,329
Income before income tax expense		17,386		12,877		44,215		35,850
Income tax expense		2,993		2,351		7,229		6,020
Net income		14,393		10,526		36,986		29,830
Preferred stock dividend		218		218		656		656
Net income available to common shareholders	$	14,175	$	10,308	$	36,330	$	29,174
Earnings per common share
Basic	$	1.70	$	1.24	$	4.37	$	3.50
Diluted		1.70		1.24		4.37		3.50
Dividends declared per share		0.29		0.25		0.87		0.75

See accompanying Notes to Unaudited Consolidated Financial Statements.

2

First Business Financial Services, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
	(In Thousands)
Net income	$	14,393		$	10,526		$	36,986		$	29,830
Other comprehensive income (loss)
Securities available-for-sale:
Unrealized securities gains arising during the period		2,161			9,129			9,380			5,624
Reclassification adjustment for net loss realized in net income		—			—			—			8
Securities held-to-maturity:
Amortization of net unrealized losses transferred from available-for-sale		—			1			1			2
Interest rate swaps:
Unrealized losses on interest rate swaps arising during the period		(678	)		(11,811	)		(9,786	)		(6,507	)
Income tax (expense) benefit		(329	)		593			180			(442	)
Total other comprehensive income (loss)		1,154			(2,088	)		(225	)		(1,315	)
Comprehensive income	$	15,547		$	8,438		$	36,761		$	28,515

See accompanying Notes to Unaudited Consolidated Financial Statements.

3

First Business Financial Services, Inc.

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

	Common Shares Outstanding			Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
	(In Thousands, Except Share Data)
Balance at December 31, 2023		8,314,778		$	11,992	$	95	$	90,616	$	230,728		$	(13,717	)	$	(30,126	)	$	289,588
Net income		—			—		—		—		8,848			—			—			8,848
Other comprehensive income		—			—		—		—		—			1,541			—			1,541
Share-based compensation -     restricted shares and employee    stock purchase plan		6,940			—		—		665		—			—			—			665
Issuance of common stock    under the employee stock    purchase plan		913			—		—		31		—			—			—			31
Preferred stock dividends		—			—		—		—		(219	)		—			—			(219	)
Cash dividends ($0.25    per share)		—			—		—		—		(2,087	)		—			—			(2,087	)
Treasury stock purchased		(16,058	)		—		—		—		—			—			(579	)		(579	)
Balance at March 31, 2024		8,306,573		$	11,992	$	95	$	91,312	$	237,270		$	(12,176	)	$	(30,705	)	$	297,788
Net income		—			—		—		—		10,456			—			—			10,456
Other comprehensive loss		—			—		—		—		—			(768	)		—			(768	)
Share-based compensation -     restricted shares and employee    stock purchase plan		6,494			—		—		624		—			—			—			624
Issuance of common stock    under the employee stock    purchase plan		949			—		—		31		—			—			—			31
Preferred stock dividends		—			—		—		—		(219	)		—			—			(219	)
Cash dividends ($0.25    per share)		—			—		—		—		(2,076	)		—			—			(2,076	)
Treasury stock purchased		(19,427	)		—		—		—		—			—			(666	)		(666	)
Balance at June 30, 2024		8,294,589		$	11,992	$	95	$	91,967	$	245,431		$	(12,944	)	$	(31,371	)	$	305,170
Net income		—			—		—		—		10,526			—			—			10,526
Other comprehensive loss		—			—		—		—		—			(2,088	)		—			(2,088	)
Share-based compensation -     restricted shares and employee    stock purchase plan		(145	)		—		—		649		—			—			—			649
Issuance of common stock    under the employee stock    purchase plan		830			—		—		34		—			—			—			34
Preferred stock dividends		—			—		—		—		(218	)		—			—			(218	)
Cash dividends ($0.25    per share)		—			—		—		—		(2,079	)		—			—			(2,079	)
Treasury stock purchased		(257	)		—		—		—		—			—			(12	)		(12	)
Balance at September 30, 2024		8,295,017		$	11,992	$	95	$	92,650	$	253,660		$	(15,032	)	$	(31,383	)	$	311,982

4

	Common Shares Outstanding			Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total
	(In Thousands, Except Share Data)
Balance at December 31, 2024		8,293,928		$	11,992	$	95	$	93,545	$	265,778		$	(11,425	)	$	(31,396	)	$	328,589
Net income		—			—		—		—		11,171			—			—			11,171
Other comprehensive loss		—			—		—		—		—			(946	)		—			(946	)
Share-based compensation -    restricted shares and employee    stock purchase plan		21,914			—		1		650		—			—			—			651
Issuance of common stock    under the employee stock    purchase plan		841			—		—		36		—			—			—			36
Preferred stock dividends		—			—		—		—		(219	)		—			—			(219	)
Cash dividends ($0.29    per share)		—			—		—		—		(2,442	)		—			—			(2,442	)
Treasury stock purchased		(14,716	)		—		—		—		—			—			(777	)		(777	)
Balance at March 31, 2025		8,301,967		$	11,992	$	96	$	94,231	$	274,288		$	(12,371	)	$	(32,173	)	$	336,063
Net income		—			—		—		—		11,422			—			—			11,422
Other comprehensive loss		—			—		—		—		—			(433	)		—			(433	)
Share-based compensation -     restricted shares and employee    stock purchase plan		33,654			—		—		926		—			—			—			926
Issuance of common stock    under the employee stock    purchase plan		791			—		—		36		—			—			—			36
Preferred stock dividends		—			—		—		—		(219	)		—			—			(219	)
Cash dividends ($0.29    per share)		—			—		—		—		(2,414	)		—			—			(2,414	)
Treasury stock purchased		(12,942	)		—		—		—		—			—			(586	)		(586	)
Balance at June 30, 2025		8,323,470		$	11,992	$	96	$	95,193	$	283,077		$	(12,804	)	$	(32,759	)	$	344,795
Net income		—			—		—		—		14,393			—			—			14,393
Other comprehensive income		—			—		—		—		—			1,154			—			1,154
Share-based compensation -     restricted shares and employee    stock purchase plan		348			—		—		585		—			—			—			585
Issuance of common stock    under the employee stock    purchase plan		796			—		—		36		—			—			—			36
Preferred stock dividends		—			—		—		—		(218	)		—			—			(218	)
Cash dividends ($0.29    per share)		—			—		—		—		(2,415	)		—			—			(2,415	)
Treasury stock purchased		(227	)		—		—		—		—			—			(11	)		(11	)
Balance at September 30, 2025		8,324,387		$	11,992	$	96	$	95,814	$	294,837		$	(11,650	)	$	(32,770	)	$	358,319

See accompanying Notes to Unaudited Consolidated Financial Statements.

5

First Business Financial Services, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	For the Nine Months Ended September 30,
	2025			2024
	(In Thousands)
Operating activities
Net income	$	36,986		$	29,830
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes, net		225			565
Provision for credit losses		6,800			6,126
Depreciation, amortization and accretion, net		2,824			2,723
Share-based compensation		2,161			1,938
Net loss on disposal of fixed assets		—			10
Net loss on sale of securities		—			8
Net loss on sale of tax credit investments		60			—
Amortization of tax credit investments		4,104			3,888
Bank-owned life insurance policy income		(2,016	)		(1,231	)
Origination of loans for sale		(113,272	)		(103,865	)
Sale of loans originated for sale		115,030			101,285
Gain on sale of loans originated for sale		(1,742	)		(1,004	)
Net loss on repossessed assets		27			162
Return on investment in limited partnerships		1,334			1,481
Excess tax benefit from share-based compensation		233			172
Net payments on operating lease liabilities		(1,184	)		(1,099	)
Net increase (decrease) in accrued interest receivable and other assets		17,263			(10,465	)
Net (increase) decrease in accrued interest payable and other liabilities		(23,279	)		5,003
Net cash provided by operating activities		45,554			35,527
Investing activities
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities		42,416			60,688
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities		1,151			1,586
Proceeds from sale of available-for-sale securities		—			7,533
Purchases of available-for-sale securities		(102,813	)		(79,066	)
Proceeds from sale of repossessed assets		24			18
Net increase in loans and leases		(227,513	)		(203,422	)
Investments in limited partnerships		(3,029	)		(1,200	)
Returns of investments in limited partnerships		229			22
Investment in tax credit investments		(12,673	)		(13,417	)
Distributions from tax credit investments		26			130
Proceeds from sale of tax credit investments		2,483			1,645
Investment in Federal Home Loan Bank stock		(20,634	)		(20,555	)
Proceeds from the sale of Federal Home Loan Bank stock		22,645			19,822
Purchases of leasehold improvements and equipment, net		(556	)		(181	)
Proceeds from sale of leasehold improvements and equipment		—			30
Purchases of bank owned life insurance policies		(24,500	)		—
Proceeds from bank owned life insurance claim		471			—
Net cash used in investing activities		(322,273	)		(226,367	)
Financing activities
Net increase in deposits		225,931			173,168
Repayment of Federal Home Loan Bank advances		(1,040,261	)		(908,205	)
Proceeds from Federal Home Loan Bank advances		986,812			921,155
Repayment of subordinated notes and debentures		—			(15,000	)
Proceeds from issuance of subordinated notes and debentures		—			20,000
Net increase in long-term borrowed funds		77			243
Cash dividends paid		(7,271	)		(6,242	)
Preferred stock dividends paid		(656	)		(656	)
Proceeds from issuance of common stock under ESPP		108			96
Purchase of treasury stock		(1,374	)		(1,257	)
Net cash provided by financing activities		163,366			183,302
Net decrease in cash and cash equivalents		(113,353	)		(7,538	)
Cash and cash equivalents at the beginning of the period		157,702			139,510
Cash and cash equivalents at the end of the period	$	44,349		$	131,972
Supplementary cash flow information
Cash paid during the period for:
Interest paid on deposits and borrowings	$	82,646		$	82,002
Net income taxes paid		1,613			853
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for lease liabilities		712			—
Transfer of repossessed assets to loans		—			10

See accompanying Notes to Unaudited Consolidated Financial Statements

6

Notes to Unaudited Consolidated Financial Statements

Note 1 — Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

The accounting and reporting practices of First Business Financial Services, Inc. (“FBFS” or the “Corporation”), through our wholly-owned subsidiary, First Business Bank (“FBB” or the “Bank”), have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB operates as a commercial banking institution primarily in Wisconsin and the greater Kansas City metropolitan area. The Bank provides a full range of financial services to businesses, business owners, executives, professionals, and high net worth individuals. FBB also offers bank consulting services to community financial institutions. The Bank is subject to competition from other financial institutions and service providers and is also subject to state and federal regulations.

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024. The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Management of the Corporation is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of the allowance for credit losses, lease residuals, property under operating leases, goodwill, and income taxes. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2025. Certain amounts in prior periods may have been reclassified to conform to the current presentation. Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures.

The Corporation has not changed its significant accounting and reporting policies from those disclosed in the Corporation’s Form 10-K for the year ended December 31, 2024.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities. This update is effective for fiscal years beginning after December 15, 2024. The adoption of this standard is not expected to have a material effect on the Corporation's operating results or financial condition.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40).” This update improves the transparency and usefulness of financial statements by requiring companies to break down certain expense line items. This update is effective for fiscal years beginning after December 15, 2026. The Corporation is assessing the impact of this standard.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” This update modernizes the accounting for internal-use software. This update is effective for fiscal years beginning after December 15, 2027. The Corporation is assessing the impact of this standard.

7

Note 2 — Earnings per Common Share

Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(Dollars in Thousands, Except Share Data)
Basic earnings per common share
Net income	$	14,393	$	10,526	$	36,986	$	29,830
Less: preferred stock dividends		218		218		656		656
Less: earnings allocated to participating securities		259		228		719		682
Basic earnings allocated to common shareholders	$	13,916	$	10,080	$	35,611	$	28,492
Weighted-average common shares outstanding, excluding participating securities		8,171,404		8,111,215		8,153,181		8,149,949
Basic earnings per common share	$	1.70	$	1.24	$	4.37	$	3.50
Diluted earnings per common share
Earnings allocated to common shareholders, diluted	$	13,916	$	10,080	$	35,611	$	28,492
Weighted-average diluted common shares outstanding, excluding participating securities		8,171,404		8,111,215		8,153,181		8,149,949
Diluted earnings per common share	$	1.70	$	1.24	$	4.37	$	3.50

Note 3 — Share-Based Compensation

The Corporation initially adopted the 2019 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2019. The Plan is administered by the Compensation Committee of the Board of Directors (the “Board”) of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of September 30, 2025, 192,447 shares were available for future grants under the Plan, as amended. Shares covered by awards that expire, terminate, or lapse will again be available for the grant of awards under the Plan.

Restricted Stock

Under the Plan, the Corporation may grant restricted stock awards (“RSA”), restricted stock units (“RSU”), and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, RSA participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. RSUs do not have voting rights. RSUs granted prior to 2023 are provided dividend equivalents concurrent with dividends paid to shareholders while RSUs granted in 2023 and after will accrue dividend equivalents payable upon vesting. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense for restricted stock is recognized over the requisite service period of generally three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the unaudited Consolidated Statements of Income.

The Corporation may also issue performance-based restricted stock units (“PRSU”). Vesting of the PRSU will be measured on the relative Total Shareholder Return (“TSR”) and relative Return on Average Common Equity (“ROACE”), as defined in the respective agreements, and the awards will cliff-vest after a three-year measurement period based on the Corporation’s TSR performance and ROACE performance compared to a broad peer group of over 100 banks. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. The restricted stock awards and units issued to executive

8

officers will vest ratably over a three-year period. Compensation expense is recognized for PRSU over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the ROACE metric will be adjusted if there is a change in the expectation of ROAE or ROACE. The compensation expense for the awards expected to vest for the percentage of PRSU subject to the TSR metric are never adjusted and are amortized utilizing the fair value provided using a Monte Carlo pricing model.

Restricted stock activity for the year ended December 31, 2024 and the nine months ended September 30, 2025 was as follows:

	RSA	Weighted Average Grant Price	PRSU	Weighted Average Grant Price	RSU	Weighted Average Grant Price	Total	Weighted Average Grant Price
Nonvested balance as of December 31, 2023	71,951	$28.53	56,155	$35.70	56,987	$33.97	185,093	$32.38
Granted (1)	—	—	27,614	34.76	65,717	30.43	93,331	31.71
Vested	(35,131)	26.86	(34,139)	25.43	(33,716)	21.25	(102,986)	24.57
Forfeited	(7,924)	29.75	—	—	(8,827)	36.25	(16,751)	33.18
Nonvested balance as of December 31, 2024	28,896	30.09	49,630	42.24	80,161	36.04	158,687	36.77
Granted (1)	—	—	12,195	63.61	44,169	51.20	56,364	53.83
Vested	(20,035)	28.64	(15,825)	42.70	(31,641)	37.54	(67,501)	37.20
Forfeited	(904)	33.60	—	—	(1,813)	40.61	(2,717)	40.02
Nonvested balance as of September 30, 2025	7,957	$33.74	46,000	$47.31	90,876	$42.91	144,833	$43.81
Unrecognized compensation cost (in thousands)	$112		$1,169		$3,052		$4,333
Weighted average remaining recognition period (in years)	0.61		1.81		2.19		2.14

(1)The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the PRSU. The number of shares actually issued may vary. During the nine months ended September 30, 2025, an additional 13,427 were issued related to actual performance results of previously granted awards.

Employee Stock Purchase Plan

The Corporation is authorized to issue up to 250,000 shares of common stock under the employee stock purchase plan ("ESPP"). The plan qualifies as an employee stock purchase plan under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may elect to purchase a limited number of shares of the Corporation's common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory item for purposes of share-based compensation expense.

The Corporation issued 2,428 and 2,692 shares of common stock under the ESPP during the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025 and 2024, 224,378 and 227,946, respectively, shares remained available for issuance under the ESPP.

Share-based compensation expense related to restricted stock and ESPP included in the unaudited Consolidated Statements of Income was as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
	(In Thousands)
Share-based compensation expense	$	585	$	649	$	2,161	$	1,938

9

Note 4 — Securities

The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

	As of September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	4,994	$	—	$	(132	)	$	4,862
U.S. government agency securities - government-sponsored    enterprises		2,500		—		(207	)		2,293
Municipal securities		47,097		219		(4,129	)		43,187
Residential mortgage-backed securities - government issued		157,232		1,253		(1,691	)		156,794
Residential mortgage-backed securities - government-sponsored    enterprises		169,179		717		(7,678	)		162,218
Commercial mortgage-backed securities - government issued		2,469		—		(347	)		2,122
Commercial mortgage-backed securities - government-sponsored    enterprises		42,510		67		(2,942	)		39,635
	$	425,981	$	2,256	$	(17,126	)	$	411,111

	As of December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	4,989	$	—	$	(271	)	$	4,718
U.S. government agency securities - government-sponsored    enterprises		3,500		—		(347	)		3,153
Municipal securities		39,997		—		(5,136	)		34,861
Residential mortgage-backed securities - government issued		125,571		470		(2,818	)		123,223
Residential mortgage-backed securities - government-sponsored    enterprises		145,888		234		(11,357	)		134,765
Commercial mortgage-backed securities - government issued		2,665		—		(441	)		2,224
Commercial mortgage-backed securities - government-sponsored    enterprises		43,033		24		(4,609	)		38,448
	$	365,643	$	728	$	(24,979	)	$	341,392

The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows:

	As of September 30, 2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(In Thousands)
Held-to-maturity:
Municipal securities	$	2,396	$	1	$	(3	)	$	2,394
Residential mortgage-backed securities - government issued		614		—		(30	)		584
Residential mortgage-backed securities - government-sponsored    enterprises		573		—		(22	)		551
Commercial mortgage-backed securities - government-sponsored    enterprises		2,001		—		(29	)		1,972
	$	5,584	$	1	$	(84	)	$	5,501

10

	As of December 31, 2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(In Thousands)
Held-to-maturity:
Municipal securities	$	3,137	$	—	$	(38	)	$	3,099
Residential mortgage-backed securities - government issued		836		—		(48	)		788
Residential mortgage-backed securities - government-sponsored    enterprises		766		—		(42	)		724
Commercial mortgage-backed securities - government-sponsored    enterprises		2,002		—		(78	)		1,924
	$	6,741	$	—	$	(206	)	$	6,535

U.S. Treasuries contain treasury bonds issued by the United States Treasury. U.S. government agency securities - government-sponsored enterprises represent securities issued by Federal National Mortgage Association (“FNMA”) and the Small Business Administration ("SBA"). Municipal securities include securities issued by various municipalities and are primarily general obligation bonds that are tax-exempt in nature. Residential and commercial mortgage-backed securities - government issued represent securities guaranteed by the Government National Mortgage Association. Residential and commercial mortgage-backed securities - government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation, FNMA, and the FHLB. The Corporation sold no available-for-sale securities during the three and nine months ended September 30, 2025. The Corporation sold no available-for-sale securities during the three months ended September 30, 2024 and five available-for-sale securities during the nine months ended September 30, 2024.

At September 30, 2025 and December 31, 2024, securities with a fair value of $39.8 million and $36.9 million, respectively, were pledged to secure various obligations, including interest rate swap contracts and municipal deposits.

The amortized cost and fair value of securities by contractual maturity at September 30, 2025 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	942	$	933	$	535	$	534
Due in one year through five years		17,100		16,407		1,861		1,860
Due in five through ten years		10,506		9,811		—		—
Due in over ten years		26,043		23,191		—		—
		54,591		50,342		2,396		2,394
Residential mortgage-backed securities		326,411		319,012		1,187		1,135
Commercial mortgage-backed securities		44,979		41,757		2,001		1,972
	$	425,981	$	411,111	$	5,584	$	5,501

The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2025 and December 31, 2024. At September 30, 2025, the Corporation held 167 available-for-sale securities that were in an unrealized loss position, 153 of which have been in a continuous unrealized loss position for twelve months or greater.

The Corporation has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the three and nine months ended September 30, 2025 and 2024, management concluded that in all instances securities with fair value less than carrying value was due to market factors; thus, no credit loss provision was required.

11

A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

	As of September 30, 2025
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	—	$	—	$	4,862	$	132	$	4,862	$	132
U.S. government agency securities - government-    sponsored enterprises		—		—		2,293		207		2,293		207
Municipal securities		—		—		34,059		4,129		34,059		4,129
Residential mortgage-backed securities -    government issued		16,515		58		17,872		1,633		34,387		1,691
Residential mortgage-backed securities -    government-sponsored enterprises		18,277		120		69,450		7,558		87,727		7,678
Commercial mortgage-backed securities -    government issued		—		—		2,122		347		2,122		347
Commercial mortgage-backed securities -    government-sponsored enterprises		5,963		54		27,531		2,888		33,494		2,942
	$	40,755	$	232	$	158,189	$	16,894	$	198,944	$	17,126

	As of December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	—	$	—	$	4,718	$	271	$	4,718	$	271
U.S. government agency securities - government-    sponsored enterprises		—		—		3,153		347		3,153		347
Municipal securities		—		—		34,861		5,136		34,861		5,136
Residential mortgage-backed securities -    government issued		40,320		374		18,999		2,444		59,319		2,818
Residential mortgage-backed securities -    government-sponsored enterprises		43,907		995		71,103		10,362		115,010		11,357
Commercial mortgage-backed securities -    government issued		—		—		2,224		441		2,224		441
Commercial mortgage-backed securities -    government-sponsored enterprises		10,717		425		26,751		4,184		37,468		4,609
	$	94,944	$	1,794	$	161,809	$	23,185	$	256,753	$	24,979

The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2025 and December 31, 2024. At September 30, 2025, the Corporation held 18 held-to-maturity securities that were in an unrealized loss position, 17 of which have been in a continuous loss position for twelve months or greater. Management assesses held-to-maturity securities for credit losses on a quarterly basis. The assessment includes review of credit ratings, identification of delinquency and evaluation of market factors. Based on this analysis, management concludes the decline in fair value is due to market factors, specifically changes in interest rates. Accordingly, no credit loss provision was recorded in the unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024.

12

A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

	As of September 30, 2025
	Less than 12 Months		12 Months or Longer		Total
	Fair Value	Unrecognized Losses	Fair Value	Unrecognized Losses	Fair Value	Unrecognized Losses
	(In Thousands)
Held-to-maturity:
Municipal securities	$500	$—	$680	$3	$1,180	$3
Residential mortgage-backed securities -    government issued	—	—	584	30	584	30
Residential mortgage-backed securities -    government-sponsored enterprises	—	—	551	22	551	22
Commercial mortgage-backed securities -    government-sponsored enterprises	—	—	1,972	29	1,972	29
	$500	$—	$3,787	$84	$4,287	$84

	As of December 31, 2024
	Less than 12 Months		12 Months or Longer		Total
	Fair Value	Unrecognized Losses	Fair Value	Unrecognized Losses	Fair Value	Unrecognized Losses
	(In Thousands)
Held-to-maturity:
Municipal securities	$454	$5	$2,139	$33	$2,593	$38
Residential mortgage-backed securities -    government issued	—	—	788	48	788	48
Residential mortgage-backed securities -    government-sponsored enterprises	—	—	724	42	724	42
Commercial mortgage-backed securities -    government-sponsored enterprises	—	—	1,924	78	1,924	78
	$454	$5	$5,575	$201	$6,029	$206

Note 5 — Loans, Lease Receivables, and Allowance for Credit Losses

Loan and lease receivables consist of the following:

	September 30, 2025		December 31, 2024
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	287,005	$	273,397
Commercial real estate — non-owner occupied		871,807		845,298
Construction		236,590		221,086
Multi-family		565,102		530,853
1-4 family		66,735		46,496
Total commercial real estate		2,027,239		1,917,130
Commercial and industrial		1,264,111		1,151,720
Consumer and other		45,323		45,000
Total gross loans and leases receivable		3,336,673		3,113,850
Less:
Allowance for credit losses		36,690		35,785
Deferred loan fees and costs, net		1,717		722
Loans and leases receivable, net	$	3,298,266	$	3,077,343

13

Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans.

The total principal amount of the guaranteed portions of SBA loans sold during the three months ended September 30, 2025 and 2024, was $5.2 million and $4.6 million, respectively. The total principal amount of the guaranteed portions of SBA loans sold during the nine months ended September 30, 2025 and 2024, was $17.4 million and $10.3 million, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three and nine months ended September 30, 2025 and 2024, have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans serviced by the Corporation at September 30, 2025, and December 31, 2024, was $83.5 million and $79.4 million, respectively.

The total principal amount of transferred participation interests in other, non-SBA originated loans during the three months ended September 30, 2025 and 2024, was $18.9 million and $31.4 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. The total principal amount of transferred participation interests in other, non-SBA originated loans during the nine months ended September 30, 2025 and 2024, was $95.9 million and $90.0 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other, non-SBA originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represent adequate compensation. The total amount of other, non-SBA loan participations purchased on the Corporation's unaudited Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024 were $16.1 million and $5.3 million, respectively. The total outstanding balance of transferred other, non-SBA loans serviced by the Corporation at September 30, 2025 and December 31, 2024, was $393.8 million and $373.1 million, respectively. As of September 30, 2025 and December 31, 2024, the total amount of the Corporation’s retained ownership of these transferred other, non-SBA loans was $454.8 million and $423.7 million, respectively. The Corporation does not share in the participant’s portion of any potential charge-offs.

14

The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-accrual loans by class of receivable, and considering certain credit quality indicators:

September 30, 2025	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2025	2024	2023	2022	2021	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate —    owner occupied
Category
I	$46,381	$21,783	$40,701	$32,663	$32,405	$102,813	$1,892	$278,638	97.1%
II	—	—	2,026	—	—	—	—	2,026	0.7%
III	—	2,211	—	—	—	4,130	—	6,341	2.2%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$46,381	$23,994	$42,727	$32,663	$32,405	$106,943	$1,892	$287,005	100.0%
Commercial real estate —    non-owner occupied
Category
I	$67,053	$86,598	$90,413	$86,699	$68,548	$398,897	$40,541	$838,749	96.2%
II	—	—	—	—	—	18,868	—	18,868	2.2%
III	—	—	—	—	—	14,190	—	14,190	1.6%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$67,053	$86,598	$90,413	$86,699	$68,548	$431,955	$40,541	$871,807	100.0%
Construction
Category
I	$11,466	$45,653	$112,294	$9,683	$591	$5,068	$37,254	$222,009	93.8%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	454	8,155	5,972	—	14,581	6.2%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$11,466	$45,653	$112,294	$10,137	$8,746	$11,040	$37,254	$236,590	100.0%
Multi-family
Category
I	$48,355	$18,894	$97,418	$92,800	$58,742	$226,433	$2,320	$544,962	96.4%
II	—	—	—	7,338	2,578	789	—	10,705	1.9%
III	—	—	—	—	8,410	1,025	—	9,435	1.7%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$48,355	$18,894	$97,418	$100,138	$69,730	$228,247	$2,320	$565,102	100.0%
1-4 family
Category
I	$16,524	$12,947	$1,429	$4,557	$2,053	$3,807	$25,418	$66,735	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$16,524	$12,947	$1,429	$4,557	$2,053	$3,807	$25,418	$66,735	100.0%
Commercial and industrial
Category
I	$188,128	$192,178	$153,791	$58,926	$38,358	$33,091	$452,978	$1,117,450	88.4%
II	—	14,303	13,976	6,017	1,401	2,721	35,490	73,908	5.8%
III	672	6,116	5,583	4,505	599	4,142	27,623	49,240	3.9%
IV	338	1,255	3,617	3,339	432	2,403	12,129	23,513	1.9%
Total	$189,138	$213,852	$176,967	$72,787	$40,790	$42,357	$528,220	$1,264,111	100.0%
Consumer and other
Category
I	$7,288	$6,371	$4,569	$5,625	$2,451	$12,489	$6,530	$45,323	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$7,288	$6,371	$4,569	$5,625	$2,451	$12,489	$6,530	$45,323	100.0%
Total Loans
Category
I	$385,195	$384,424	$500,615	$290,953	$203,148	$782,598	$566,933	$3,113,866	93.3%
II	—	14,303	16,002	13,355	3,979	22,378	35,490	105,507	3.2%
III	672	8,327	5,583	4,959	17,164	29,459	27,623	93,787	2.8%
IV	338	1,255	3,617	3,339	432	2,403	12,129	23,513	0.7%
Total	$386,205	$408,309	$525,817	$312,606	$224,723	$836,838	$642,175	$3,336,673	100.0%

15

December 31, 2024	Term Loans Amortized Cost Basis by Origination Year
(In Thousands)	2024	2023	2022	2021	2020	Prior	Revolving Loans Amortized Cost Basis	Total	Category as a % of total portfolio
Commercial real estate —    owner occupied
Category
I	$26,508	$45,066	$42,849	$34,486	$37,078	$85,405	$447	$271,839	99.4%
II	—	—	—	—	—	—	—	—	0.0%
III	750	—	—	—	—	217	—	967	0.4%
IV	—	—	—	—	—	591	—	591	0.2%
Total	$27,258	$45,066	$42,849	$34,486	$37,078	$86,213	$447	$273,397	100.0%
Commercial real estate —    non-owner occupied
Category
I	$80,371	$85,651	$89,181	$69,129	$85,238	$340,802	$37,129	$787,501	93.2%
II	—	—	—	—	2,150	31,720	—	33,870	4.0%
III	—	638	—	—	—	23,289	—	23,927	2.8%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$80,371	$86,289	$89,181	$69,129	$87,388	$395,811	$37,129	$845,298	100.0%
Construction
Category
I	$36,135	$110,437	$24,302	$1,183	$719	$5,520	$28,205	$206,501	93.4%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	454	8,155	5,713	263	—	14,585	6.6%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$36,135	$110,437	$24,756	$9,338	$6,432	$5,783	$28,205	$221,086	100.0%
Multi-family
Category
I	$40,079	$102,886	$74,753	$66,775	$97,303	$134,331	$2,288	$518,415	97.6%
II	—	—	7,407	2,584	—	1,043	—	11,034	2.1%
III	—	—	—	1,404	—	—	—	1,404	0.3%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$40,079	$102,886	$82,160	$70,763	$97,303	$135,374	$2,288	$530,853	99.9%
1-4 family
Category
I	$15,220	$4,200	$7,005	$2,336	$2,282	$2,178	$13,275	$46,496	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$15,220	$4,200	$7,005	$2,336	$2,282	$2,178	$13,275	$46,496	100.0%
Commercial and industrial
Category
I	$259,976	$216,621	$93,119	$52,066	$23,960	$27,370	$405,499	$1,078,611	93.7%
II	316	2,700	2,657	—	470	8	7,676	13,827	1.2%
III	4,205	5,418	3,909	1,379	2,446	3,957	10,192	31,506	2.7%
IV	536	4,060	6,245	1,038	274	2,519	13,104	27,776	2.4%
Total	$265,033	$228,799	$105,930	$54,483	$27,150	$33,854	$436,471	$1,151,720	100.0%
Consumer and other
Category
I	$6,955	$5,244	$7,416	$2,764	$10,994	$3,885	$7,742	$45,000	100.0%
II	—	—	—	—	—	—	—	—	0.0%
III	—	—	—	—	—	—	—	—	0.0%
IV	—	—	—	—	—	—	—	—	0.0%
Total	$6,955	$5,244	$7,416	$2,764	$10,994	$3,885	$7,742	$45,000	100.0%
Total Loans
Category
I	$465,244	$570,105	$338,625	$228,739	$257,574	$599,491	$494,585	$2,954,363	94.9%
II	316	2,700	10,064	2,584	2,620	32,771	7,676	58,731	1.9%
III	4,955	6,056	4,363	10,938	8,159	27,726	10,192	72,389	2.3%
IV	536	4,060	6,245	1,038	274	3,110	13,104	28,367	0.9%
Total	$471,051	$582,921	$359,297	$243,299	$268,627	$663,098	$525,557	$3,113,850	100.0%

Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation primarily uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent

16

definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is determined based on various quantitative and qualitative factors and is subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management.

Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers, and continued review of such borrowers’ compliance with the terms of their respective agreements.

Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by asset quality review committees.

Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and asset quality review committees on a monthly basis.

Category IV — Loans and leases in this category are non-accrual loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-accrual loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded. Loans and leases in this category are monitored by management and asset quality review committees on a monthly basis.

The delinquency aging of the loan and lease portfolio by class of receivable was as follows:

	September 30, 2025
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	—		$	—		$	—		$	—		$	287,005		$	287,005
Non-owner occupied		3,593			—			—			3,593			868,214			871,807
Construction		—			—			—			—			236,590			236,590
Multi-family		—			—			—			—			565,102			565,102
1-4 family		—			—			—			—			66,735			66,735
Commercial and industrial		1,175			774			16,474			18,423			1,245,688			1,264,111
Consumer and other		—			—			—			—			45,323			45,323
Total	$	4,768		$	774		$	16,474		$	22,016		$	3,314,657		$	3,336,673
Percent of portfolio		0.14	%		0.02	%		0.49	%		0.65	%		99.35	%		100.00	%

17

	December 31, 2024
	30-59 Days Past Due			60-89 Days Past Due			Greater Than 90 Days Past Due			Total Past Due			Current			Total Loans and Leases
	(Dollars in Thousands)
Total loans and leases
Commercial real estate:
Owner occupied	$	1,102		$	—		$	—		$	1,102		$	272,295		$	273,397
Non-owner occupied		—			—			—			—			845,298			845,298
Construction		14,321			263			—			14,584			206,502			221,086
Multi-family		—			—			—			—			530,853			530,853
1-4 family		—			—			—			—			46,496			46,496
Commercial and industrial		5,405			1,072			18,984			25,461			1,126,259			1,151,720
Consumer and other		—			10			—			10			44,990			45,000
Total	$	20,828		$	1,345		$	18,984		$	41,157		$	3,072,693		$	3,113,850
Percent of portfolio		0.67	%		0.04	%		0.61	%		1.32	%		98.68	%		100.00	%

The following tables provide additional detail on loans on non-accrual status and loans past due over 89 days still accruing as of:

	September 30, 2025
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	—	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction		—		—		—
Multi-family		—		—		—
1-4 family		—		—		—
Total commercial real estate		—		—		—
Commercial and industrial		8,331		15,182		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	8,331	$	15,182	$	—

	December 31, 2024
	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
	(In Thousands)
Commercial real estate:
Commercial real estate — owner occupied	$	—	$	591	$	—
Commercial real estate — non-owner occupied		—		—		—
Construction		—		—		—
Multi-family		—		—		—
1-4 family		—		—		—
Total commercial real estate		—		591		—
Commercial and industrial		13,125		14,651		—
Consumer and other		—		—		—
Total non-accrual loans and leases	$	13,125	$	15,242	$	—

	September 30, 2025			December 31, 2024
Total non-accrual loans and leases to gross loans and leases		0.70	%		0.91	%
Allowance for credit losses to gross loans and leases		1.15			1.20
Allowance for credit losses to non-accrual loans and leases		163.24			131.38

18

The following table presents the amortized cost basis of the non-accrual, collateral-dependent loans as of:

	September 30, 2025		December 31, 2024
	(In Thousands)
Equipment	$	16,097	$	12,178
Real Estate		935		7,724
Accounts Receivable		6,113		6,570
Other		504		2,053
Total	$	23,649	$	28,525

Occasionally, the Corporation modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

The following table presents the amortized cost basis of loans at September 30, 2025 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025 and 2024, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized costs basis of each class of financing receivable is also presented below.

	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	—		0.00	%
Commercial and industrial		—		—		—		302		6,016		6,318		0.50
Total	$	—	$	—	$	—	$	302	$	6,016	$	6,318		0.19	%

	For the Nine Months Ended September 30, 2024
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay and Term Extension		Total		Total Class of Financing Receivable
	(In Thousands)
Commercial real estate	$	—	$	5,901	$	—	$	—	$	—	$	5,901		0.32	%
Commercial and industrial		—		1,847		477		—		—		2,324		0.20
Total	$	—	$	7,748	$	477	$	—	$	—	$	8,225		0.27	%

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months:

	For the Nine Months Ended September 30, 2025
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due
	(Dollars in Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		—		—
Total	$	—	$	—	$	—	$	—

19

	For the Nine Months Ended September 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due
	(Dollars in Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		360		50		410
Total	$	—	$	360	$	50	$	410

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2025 and 2024:

	For the Nine Months Ended September 30, 2025
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.00
Commercial and industrial		—		2.25			0.50		0.50
Total	$	—		2.25	%		0.50		0.50

	For the Nine Months Ended September 30, 2024
(Dollars in Thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction			Weighted Average Term Extension (years)		Weighted Average Payment Delay (years)
Commercial real estate	$	—		0.00	%		0.00		0.75
Commercial and industrial		—		0.00			1.01		0.67
Total	$	—		0.00	%		1.01		1.42

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2025 and 2024 and were modified in the 12 months prior to that default to borrowers experience financial difficulty:

	For the Nine Months Ended September 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		397		—
Total	$	—	$	—	$	397	$	—

	For the Nine Months Ended September 30, 2024
	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction
	(In Thousands)
Commercial real estate	$	—	$	—	$	—	$	—
Commercial and industrial		—		753		—		—
Total	$	—	$	753	$	—	$	—

Allowance for Credit Losses

The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2024.

20

Quantitative Considerations

The ACL is primarily calculated utilizing a Discounted Cash Flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below:

•Forecast model - For each portfolio segment, a Loss Driver Analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all DCF pools. The Corporation plans to update the LDA annually.

•Probability of Default ("PD") – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs.

•Loss Given Default ("LGD") – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data.

•Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually.

•Forecast and reversion – The Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average.

•Economic forecast – The Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2024, the Corporation selected a forecast which estimates unemployment between 4.12% and 4.20% and GDP growth change between 1.85% and 2.65% over the next four quarters. As of September 30, 2025, the Corporation selected a forecast which estimates unemployment between 4.36% and 4.75% and GDP growth change between 1.34% and 1.82% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks.

Qualitative Considerations

In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:

•The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries;

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets;

•The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff;

•The volume of past due financial assets, the volume of non-accrual loans and leases, and the volume and severity of adversely classified or graded assets;

•The existence and effect of industry concentrations of credit;

•The nature and volume of the portfolio segment or class;

•The quality of the Corporation’s credit function; and

•The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics.

21

ACL Activity

A summary of the activity in the allowance for credit losses by portfolio segment is as follows:

	As of and for the Three Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,685	$	6,330	$	2,467	$	6,059	$	429	$	20,836		$	404		$	38,210
Charge-offs		—		—		—		—		—		(1,706	)		(2	)		(1,708	)
Recoveries		—		—		—		—		6		434			—			440
Net recoveries (charge-offs)		—		—		—		—		6		(1,272	)		(2	)		(1,268	)
Provision (credit) for credit losses		160		421		374		59		118		357			(49	)		1,440
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on    unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382

	As of and for the Three Months Ended September 30, 2024
	Owner Occupied		Non-Owner Occupied			Construction		Multi- Family			1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,531	$	6,415		$	3,045	$	3,752		$	461	$	19,280		$	466		$	34,950
Charge-offs		—		—			—		—			—		(1,619	)		—			(1,619	)
Recoveries		1		—			—		—			6		84			—			91
Net recoveries (charge-offs)		1		—			—		—			6		(1,535	)		—			(1,528	)
Provision (credit) for credit losses		70		(325	)		483		(17	)		12		1,911			(47	)		2,087
Ending balance	$	1,602	$	6,090		$	3,528	$	3,735		$	479	$	19,656		$	419		$	35,509
Components:
Allowance for credit losses on loans	$	1,588	$	6,048		$	2,518	$	3,710		$	439	$	19,010		$	375		$	33,688
Allowance for credit losses on    unfunded credit commitments		14		42			1,010		25			40		646			44			1,821
Total ACL	$	1,602	$	6,090		$	3,528	$	3,735		$	479	$	19,656		$	419		$	35,509

	As of and for the Nine Months Ended September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,629	$	5,892	$	2,826	$	4,613	$	523	$	21,470		$	315		$	37,268
Charge-offs		—		—		—		—		—		(6,844	)		(12	)		(6,856	)
Recoveries		2		—		—		—		19		1,149			—			1,170
Net recoveries (charge-offs)		2		—		—		—		19		(5,695	)		(12	)		(5,686	)
Provision for credit losses		214		859		15		1,505		11		4,146			50			6,800
Ending balance	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382
Components:
Allowance for credit losses on loans	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282		$	322		$	36,690
Allowance for credit losses on    unfunded credit commitments		8		62		911		15		26		639			31			1,692
Total ACL	$	1,845	$	6,751	$	2,841	$	6,118	$	553	$	19,921		$	353		$	38,382

	As of and for the Nine Months Ended September 30, 2024
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial			Consumer and Other			Total
	(In Thousands)
Beginning balance	$	1,540	$	5,636	$	2,125	$	3,571	$	266	$	19,408		$	451		$	32,997
Charge-offs		—		—		—		—		—		(4,101	)		(22	)		(4,123	)
Recoveries		2		—		—		—		121		365			21			509
Net recoveries (charge-offs)		2		—		—		—		121		(3,736	)		(1	)		(3,614	)
Provision for credit losses		60		454		1,403		164		92		3,984			(31	)		6,126
Ending balance	$	1,602	$	6,090	$	3,528	$	3,735	$	479	$	19,656		$	419		$	35,509
Components:
Allowance for credit losses on loans	$	1,588	$	6,048	$	2,518	$	3,710	$	439	$	19,010		$	375		$	33,688
Allowance for credit losses on    unfunded credit commitments		14		42		1,010		25		40		646			44			1,821
Total ACL	$	1,602	$	6,090	$	3,528	$	3,735	$	479	$	19,656		$	419		$	35,509

22

ACL Summary

Loans collectively evaluated for credit losses in the following tables include all performing loans at September 30, 2025 and December 31, 2024. Loans individually evaluated for credit losses include all non-accrual loans.

The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology.

	As of September 30, 2025
	Owner Occupied		Non-Owner Occupied		Construction		Multi- Family		1-4 Family		Commercial and Industrial		Consumer and Other		Total
	(In Thousands)
Allowance for credit losses:
Collectively evaluated for credit    losses	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	13,657	$	322	$	31,065
Individually evaluated for credit    loss		—		—		—		—		—		5,625		—		5,625
Total	$	1,837	$	6,689	$	1,930	$	6,103	$	527	$	19,282	$	322	$	36,690
Loans and lease receivables:
Collectively evaluated for credit    losses	$	287,005	$	871,807	$	236,590	$	565,102	$	66,735	$	1,240,598	$	45,323	$	3,313,160
Individually evaluated for credit    loss		—		—		—		—		—		23,513		—		23,513
Total	$	287,005	$	871,807	$	236,590	$	565,102	$	66,735	$	1,264,111	$	45,323	$	3,336,673

As of December 31, 2024
Owner Occupied	Non-Owner Occupied	Construction	Multi- Family	1-4 Family	Commercial and Industrial	Consumer and Other	Total	<