
	Three Months Ended June 30, 2026
(In thousands)	Beginning Balance		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	8,855	$	(230)	$	—	$	16	$	8,641
CRE - owner occupied	18,582		4,437		—		14		23,033
CRE - non-owner occupied	55,271		1,440		(1,052)		116		55,775
Residential real estate	52,394		(2,201)		(97)		24		50,120
Commercial and financial	34,252		5,289		(2,942)		780		37,379
Consumer	6,898		262		(513)		455		7,102
Totals	$	176,252	$	8,997	$	(4,604)	$	1,405	$	182,050


	Three Months Ended June 30, 2025
(In thousands)	Beginning Balance		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	6,772	$	(221)	$	—	$	5	$	6,556
CRE - owner occupied	12,598		343		—		1		12,942
CRE - non-owner occupied	45,191		1,055		—		381		46,627
Residential real estate	40,348		1,544		(225)		20		41,687
Commercial and financial	27,611		1,903		(3,263)		858		27,109
Consumer	7,747		(245)		(438)		199		7,263
Totals	$	140,267	$	4,379	$	(3,926)	$	1,464	$	142,184


	Six Months Ended June 30, 2026
(In thousands)	Beginning Balance		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	9,740	$	(1,170)	$	(34)	$	105	$	8,641
CRE - owner occupied	16,528		6,299		(22)		228		23,033
CRE - non-owner occupied	56,143		576		(1,068)		124		55,775
Residential real estate	51,297		(856)		(355)		34		50,120
Commercial and financial	37,943		4,337		(5,839)		938		37,379
Consumer	7,152		572		(1,213)		591		7,102
Totals	$	178,803	$	9,758	$	(8,531)	$	2,020	$	182,050


	Six Months Ended June 30, 2025
(In thousands)	Beginning Balance		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	7,252	$	(704)	$	—	$	8	$	6,556
CRE - owner occupied	11,825		1,115		—		2		12,942
CRE - non-owner occupied	43,866		1,933		(320)		1,148		46,627
Residential real estate	39,168		2,704		(226)		41		41,687
Commercial and financial	27,533		8,337		(9,732)		971		27,109
Consumer	8,411		244		(1,925)		533		7,263
Totals	$	138,055	$	13,629	$	(12,203)	$	2,703	$	142,184

Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. Forecast data is sourced from Moody’s, a

firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time.

As of June 30, 2026 and December 31, 2025, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including continued actions taken by the Federal Reserve regarding monetary policy and changes in interest rates and the potential impact of those actions. Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.

The allowance increased $5.8 million, or 3.3%, during the second quarter of 2026 to $182.1 million, representing 1.38% of loans held for investment as of June 30, 2026.

In the Construction and land development segment, the decrease in allowance is primarily driven by a decrease in modeled expected losses. In this segment, the primary source of repayment is typically from proceeds of the sale or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses.

In the CRE - owner-occupied segment, the allowance increased due to an increase in loan balances and an increase in expected losses driven by a combination of risk characteristics. Risk characteristics include, but are not limited to, collateral type, note structure and loan seasoning.

In the CRE - non-owner-occupied segment, the allowance increase is driven by an increase in loan balances. Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment.

The Residential real estate segment includes residential mortgage, home equity loans, and HELOCs. The decrease in the allowance is reflective of a decrease in expected losses given the portfolio’s strong credit performance, favorable asset quality trends, substantial collateral support, and progression of the integration of the acquired VBI portfolio. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, LTV ratios, and loan seasoning.

In the Commercial and financial segment, borrowers are primarily small to medium sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The allowance increased in the second quarter due to an increase in loan balances. Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses.