Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

Overview

Ames National Corporation (the "Company") is a bank holding company established in 1975 that owns and operates six bank subsidiaries in central, north-central and south-central Iowa (the "Banks"). The following discussion is provided for the consolidated operations of the Company and its Banks, First National Bank, Ames, Iowa (First National), State Bank & Trust Co. (State Bank), Boone Bank & Trust Co. (Boone Bank), Reliance State Bank (Reliance Bank), United Bank & Trust Co. (United Bank) and Iowa State Savings Bank (Iowa State Bank). The purpose of this discussion is to focus on significant factors affecting the Company's financial condition and results of operations.

The Company does not engage in any material business activities apart from its ownership of the Banks. Products and services offered by the Banks are for commercial and consumer purposes including loans, deposits and wealth management services. Wealth management services includes financial planning and managing trust, agencies, estates and investment brokerage accounts. The Company employs twenty-eight individuals to assist the Banks with its financial reporting, human resources, audit, compliance, marketing, technology systems, training, real estate valuation services and the coordination of management activities, in addition to 231 full-time equivalent individuals employed by the Banks.

The Company's primary competitive strategy is to utilize seasoned and competent Bank management and local decision making authority to provide customers with faster response times and more flexibility in the products and services offered. This strategy is viewed as providing an opportunity to increase revenues through creating a competitive advantage over other financial institutions. The Company also strives to remain operationally efficient to provide better profitability while enabling the Company to offer more competitive loan and deposit rates.

The principal sources of Company revenues and cash flow are: (i) interest and fees earned on loans made by the Company and Banks; (ii) interest on fixed income investments held by the Banks; (iii) fees on wealth management services provided by those Banks exercising trust powers; (iv) service fees on deposit accounts maintained at the Banks; (v) gain on sale of loans; and (vi) merchant and card fees. The Company's principal expenses are: (i) interest expense on deposit accounts and other borrowings; (ii) credit loss expense; (iii) salaries and employee benefits; (iv) data processing costs associated with maintaining the Banks' loan and deposit functions; (v) occupancy expenses for maintaining the Banks' facilities; and (vi) professional fees. The largest component contributing to the Company's net income is net interest income, which is the difference between interest earned on earning assets (primarily loans and investments) and interest paid on interest-bearing liabilities (primarily deposits and other borrowings). One of management's principal functions is to manage the spread between interest earned on earning assets and interest paid on interest bearing liabilities in an effort to maximize net interest income while maintaining an appropriate level of interest rate risk.

The Company had net income of $6.0 million, or $0.67 per share, for the three months ended March 31, 2026, compared to net income of $3.4 million, or $0.39 per share, for the three months ended March 31, 2025. The increase in earnings is primarily due to an increase in net interest income and decrease in credit loss expense. Net interest income increased due to higher yields and average balances on investments, combined with a lower cost of funds driven by declining market rates and reduced borrowings. The decrease in credit loss expense was primarily due to a decline in loan balances in the first quarter of 2026 and a specific reserve placed on a commercial loan relationship in 2025.

The following management discussion and analysis will provide a review of important items relating to:

●	Challenges, Risks and Uncertainties

●	Critical Accounting Policies

●	Non-GAAP Financial Measures

●	Income Statement Review

●	Balance Sheet Review

●	Asset Quality Review and Credit Risk Management

●	Liquidity and Capital Resources

●	Forward-Looking Statements and Business Risks

Challenges, Risks and Uncertainties

Management has identified certain events or circumstances that may negatively impact the Company's financial condition and results of operations in the future and is attempting to position the Company to best respond to those challenges. These challenges are addressed in the Company's most recent Annual Report on Form 10-K filed on March 12, 2026.

Critical Accounting Policies

The discussion and analysis of the Company's financial condition and results of operations are based upon the Company's consolidated financial statements that have been prepared in accordance with GAAP. The preparation of the Company's financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, income and expenses. These estimates are based upon historical experience and on various other assumptions that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The estimates and judgments that management believes involve the most complex and subjective estimates and judgments and have the most effect on the Company's reported financial position and results of operations are described as critical accounting policies in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 12, 2026. There have been no significant changes in the critical accounting policies or the assumptions and judgments utilized in applying these policies since December 31, 2025.

Non-GAAP Financial Measures

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company's presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis. Management believes these non-GAAP financial measures are widely used in the financial institutions industry and provide useful information to both management and investors to analyze and evaluate the Company's financial performance. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company's GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on an FTE basis to GAAP (dollars in thousands).

		Three Months Ended March 31,
		2026				2025
Reconciliation of net interest income and annualized net interest margin on an FTE basis to GAAP:
Net interest income (GAAP)		$	15,431			$	12,915
Tax-equivalent adjustment (1)			112				120
Net interest income on an FTE basis (non-GAAP)			15,543				13,035
Average interest-earning assets		$	2,062,628			$	2,060,173
Net interest margin on an FTE basis (non-GAAP)			3.01	%			2.53	%

(1) Computed on a tax-equivalent basis using an incremental federal income tax rate of 21 percent, adjusted to reflect the effect of the tax-exempt interest income associated with owning tax-exempt securities and loans.

Income Statement Review for the Three Months ended March 31, 2026 and 2025

The following highlights a comparative discussion of the major components of net income and their impact for the three months ended March 31, 2026 and 2025:

AVERAGE BALANCES AND INTEREST RATES

The following two tables are used to calculate the Company's non-GAAP net interest margin on an FTE basis. The first table includes the Company's average assets and the related income to determine the average yield on earning assets. The second table includes the average liabilities and related expense to determine the average rate paid on interest-bearing liabilities. The net interest margin is equal to interest income less interest expense divided by average earning assets. Refer to the net interest income discussion following the tables for additional detail.

AVERAGE BALANCE SHEETS AND INTEREST RATES
		Three Months Ended March 31,
		2026												2025
		Average				Revenue/				Yield/				Average				Revenue/				Yield/
		balance				expense				rate				balance				expense				rate
ASSETS
(dollars in thousands)
Interest-earning assets
Loans (1)
Commercial		$	79,216			$	1,182				5.97	%		$	89,952			$	1,370				6.09	%
Agricultural			122,565				1,885				6.15	%			123,643				2,130				6.89	%
Real estate			1,062,327				13,556				5.10	%			1,079,940				12,963				4.80	%
Consumer and other			14,763				193				5.23	%			16,643				211				5.07	%
Total loans (including fees)			1,278,871				16,816				5.26	%			1,310,178				16,674				5.09	%
Investment securities
Taxable			600,127				4,009				2.67	%			557,398				2,840				2.04	%
Tax-exempt (2)			74,993				534				2.85	%			83,730				573				2.74	%
Total investment securities			675,120				4,543				2.69	%			641,128				3,413				2.13	%
Interest-bearing deposits with banks and federal funds sold			108,637				969				3.57	%			108,867				1,151				4.23	%
Total interest-earning assets			2,062,628			$	22,328				4.33	%			2,060,173			$	21,238				4.12	%
Noninterest-earning assets			62,585												69,528
TOTAL ASSETS		$	2,125,213											$	2,129,701

(1) Average loan balances include nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included.

(2) Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 21%.

AVERAGE BALANCE SHEETS AND INTEREST RATES
		Three Months Ended March 31,
		2026												2025
		Average				Revenue/				Yield/				Average				Revenue/				Yield/
		balance				expense				rate				balance				expense				rate
LIABILITIES AND STOCKHOLDERS' EQUITY
(dollars in thousands)
Interest-bearing liabilities
Deposits
Interest-bearing checking, savings accounts and money markets		$	1,181,173			$	3,572				1.21	%		$	1,179,259			$	4,131				1.40	%
Time deposits			323,575				2,763				3.42	%			330,967				3,288				3.97	%
Total deposits			1,504,748				6,335				1.68	%			1,510,226				7,419				1.97	%
Other borrowed funds			56,116				450				3.21	%			87,594				784				3.58	%
Total interest-bearing liabilities			1,560,864				6,785				1.74	%			1,597,820				8,203				2.05	%
Noninterest-bearing liabilities
Noninterest-bearing checking			340,294												339,709
Other liabilities			13,341												13,834
Stockholders' equity			210,714												178,338
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,125,213											$	2,129,701
Net interest income (FTE)(3)						$	15,543											$	13,035
Net interest spread (FTE)											2.59	%											2.07	%
Net interest margin (FTE)(3)											3.01	%											2.53	%

(3) Net interest income (FTE) is a non-GAAP financial measure. For further information, refer to the Non-GAAP Financial Measures section of this report.

Net Interest Income

For the three months ended March 31, 2026 and 2025, the Company's net interest margin adjusted for tax exempt income was 3.01% and 2.53%, respectively. Net interest income, prior to the adjustment for tax-exempt income, for the three months ended March 31, 2026 totaled $15.4 million compared to $12.9 million for the three months ended March 31, 2025.

For the three months ended March 31, 2026, interest income increased $1.1 million, or 5.2%, when compared to the same period in 2025. The increase is primarily due to higher yield and average balances on the investment portfolio.

Interest expense decreased $1.4 million, or 17.3%, for the three months ended March 31, 2026 when compared to the same period in 2025. The lower interest expense for the period is primarily due to a decrease in market rates and reduced borrowings.

Credit Loss Expense

A credit loss benefit of ($347) thousand was recognized for the three months ended March 31, 2026 as compared to a credit loss expense of $962 thousand for the three months ended March 31, 2025. Net loan recoveries for the three months ended March 31, 2026 totaled $32 thousand compared to net loan charge-offs totaled $48 thousand for the three months ended March 31, 2025. The credit loss benefit in 2026 was primarily due to a decline in loan balances. The credit loss expense in 2025 was primarily due to an increase in specific reserves in the commercial loan portfolio.

Noninterest Income and Expense

Noninterest income for the three months ended March 31, 2026 totaled $2.8 million compared to $2.5 million for the three months ended March 31, 2025, an increase of 9.3%. The increase is primarily due to an increase in wealth management income due to growth in assets under management and an increase in estate and trust fees.

Noninterest expense for the three months ended March 31, 2026 totaled $10.9 million compared to $10.3 million recorded for the three months ended March 31, 2025, an increase of 5.9%. The increase reflects higher professional fees, salaries and benefits. The increase in professional fees was primarily due to $300 thousand of consultant fees for certain contract negotiations during the three months ended March 31, 2026. The consultant fees are expected to continue throughout 2026 as the negotiation is in process. The increase in salaries and benefits was driven by anticipated bonus payouts as Company performance thresholds are met. The efficiency ratio was 59.69% for the first quarter of 2026 as compared to 66.38% in the first quarter of 2025. The efficiency ratio continues to improve as net interest margin increases.

Income Taxes

Income tax expense for the three months ended March 31, 2026 totaled $1.7 million compared to $794 thousand recorded for the three months ended March 31, 2025. The effective tax rate was 22% and 19% for the three months ended March 31, 2026 and 2025. The increase in income tax expense and effective tax rate was primarily due to higher net income and lower New Markets Tax Credits. The final year of tax credits was 2025 for a majority of the New Markets Tax Credit projects.

Balance Sheet Review

As of March 31, 2026, total assets were $2.1 billion, a $9.0 million increase compared to December 31, 2025. This increase in assets is primarily due to an increase in the investment portfolio and partially offset by a decrease in the loan portfolio.

Investment Portfolio

The investment portfolio totaled $688.8 million as of March 31, 2026, an increase of $32.8 million from the December 31, 2025 balance of $656.0 million. The increase in securities available-for-sale is primarily due to purchases in excess of maturities.

On a quarterly basis, the investment portfolio is reviewed for credit losses. As of March 31, 2026, gross unrealized losses of $30.1 million, are due to the interest rate environment and are not considered credit-related. Certain bonds in the investment portfolio may incur credit losses and could negatively affect the Company's net income. As a result of the Company's favorable liquidity position, the Company does not have the intent to sell securities with an unrealized loss at the present time. In addition, management believes it is more likely than not that the Company will hold these securities until recovery of their fair value to cost basis and expects full principal and interest to be collected. Therefore, the Company does not have an allowance for credit losses on these investments as of March 31, 2026.

Loan Portfolio

The loan portfolio, net of the allowance for credit losses, totaled $1.26 billion and $1.28 billion as of March 31, 2026 and December 31, 2025, respectively. The decrease is primarily due to payoffs in the commercial real estate and agricultural loan portfolios.

Deposits

Deposits totaled $1.87 billion and $1.85 billion as of March 31, 2026 and December 31, 2025, respectively. The increase in deposits is primarily due to an increase in public funds. Securities sold under agreements to repurchase decreased to $36.7 million as of March 31, 2026 compared to $38.8 million as of December 31, 2025. Securities sold under agreements to repurchase and deposit balances fluctuate as customers' liquidity needs vary and could be impacted by prevailing market interest rates, competition, and economic conditions. Approximately 15% of deposits are tied to external indexes as of March 31, 2026. Deposit interest expense related to these deposits can be more volatile than other deposit products in a changing interest rate environment.

Off-Balance Sheet Arrangements

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. No material changes in the Company's off-balance sheet arrangements have occurred since December 31, 2025.

Asset Quality Review and Credit Risk Management

The Company's credit risk is historically centered in the loan portfolio, which totaled $1.26 billion and $1.28 billion as of March 31, 2026 and December 31, 2025, respectively. Net loans comprise 59% of total assets as of March 31, 2026. The objective in managing loan portfolio risk is to reduce the risk of loss resulting from a customer's failure to perform according to the terms of an agreement and to quantify and manage credit risk on a portfolio basis. The Company's level of problem loans (consisting of nonaccrual loans and loans past due 90 days or more) as a percentage of total loans was 1.57% at March 31, 2026, as compared to 1.19% at December 31, 2025. The Company's level of problem loans as a percentage of total loans at March 31, 2026 of 1.57% is higher as compared to the Iowa State Average peer group of FDIC insured institutions as of December 31, 2025, of 0.52%, most recent available.

Substandard-Impaired loans totaled $19.6 million as of March 31, 2026 and have increased $5.0 million as compared to the substandard-impaired loans of $14.6 million as of December 31, 2025. The increase is primarily due to one relationship in the agricultural loan portfolio.

A loan is considered Substandard-Impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payment of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company applies its normal loan review procedures to identify loans that should be evaluated for impairment.

Loans past due 90 days or more that are still accruing interest are reviewed no less frequently than quarterly to determine if there continues to be a strong reason that the credit should not be placed on nonaccrual. As of March 31, 2026, nonaccrual loans totaled $20.1 million and $35 thousand of loans past due 90 days and still accruing. This compares to nonaccrual loans of $15.1 million and $328 thousand of loans past due 90 days and still accruing as of December 31, 2025. There was $212 thousand of other real estate owned as of March 31, 2026 and $204 thousand of other real estate owned as of December 31, 2025.

Loans past due 30 days or more totaled $19.4 million as of March 31, 2026, compared to $7.3 million as of December 31, 2025. The increase is primarily related to two agricultural operating loan relationships classified as substandard-impaired and one construction real estate loan relationship that matured and is being restructured.

The watch and special mention loans classified as agricultural real estate and operating totaled $36.2 million as of March 31, 2026 as compared to $30.7 million as of December 31, 2025. The substandard and substandard-impaired loans in these categories totaled $11.1 million and $9.8 million as of March 31, 2026 and December 31, 2025, respectively. The increase is primarily due to variable yields, weather impacts and commodity prices affecting agricultural loans.

The watch and special mention loans classified as commercial real estate totaled $35.0 million as of March 31, 2026 as compared to $39.0 million as of December 31, 2025. The substandard and substandard-impaired commercial real estate loans totaled $21.0 million and $26.8 million as of March 31, 2026 and December 31, 2025, respectively. The decrease is primarily due to payoffs of substandard loans.

The allowance for credit losses as a percentage of outstanding loans was 1.36% as of March 31, 2026 ​and December 31, 2025.The allowance for credit losses totaled $17.4 million and $17.7 million as of March 31, 2026 and December 31, 2025, respectively. The decrease in the allowance for credit losses is primarily due to a decrease in loan balances.

Due to recent trends in the banking industry, commercial real estate and multi-family real estate loans are facing heightened risk due to factors such as increased susceptibility to economic pressures caused by elevated interest rates and challenging market conditions. The Company maintains a rigorous approach to risk management through regular loan reviews, stress testing and sensitivity analyses to evaluate the risk level in the loan portfolio. Loan reviews include monitoring past due rates, non-performing trends, concentrations, loan-to-value ratios, and other qualitative factors. The Company's loan policies are robust and are updated as needed to align with strategic objectives and risk management priorities.

Commercial real estate and multi-family real estate represent approximately 40% of the loan portfolio as of March 31, 2026. The following is an additional breakdown of the Company's commercial real estate and multi-family real estate portfolios (in thousands):

		March 31, 2026								December 31, 2025
		Total				Percent of Total Loans				Total				Percent of Total Loans
Real estate - multi-family		$	207,127				16.1	%		$	205,232				15.8	%
Real estate - commercial
Owner-Occupied All Purposes			166,995				13.0	%			166,250				12.8	%
Non-Owner Occupied Retail or Other			46,494				3.7	%			50,141				3.9	%
Non-Owner Occupied Hotel			36,239				2.8	%			36,676				2.8	%
Non-Owner Occupied Warehouse			31,447				2.5	%			31,692				2.4	%
Non-Owner Occupied Office			22,231				1.7	%			28,361				2.2	%
Total real estate - commercial			303,406				23.7	%			313,120				24.1	%
Total real estate - commercial and multi-family		$	510,533				39.8	%		$	518,352				39.9	%

Liquidity and Capital Resources

Liquidity management is the process by which the Company, through its Banks' Asset and Liability Committees (ALCO), ensures that adequate liquid funds are available to meet its financial commitments on a timely basis, at a reasonable cost and within acceptable risk tolerances. These commitments include funding credit obligations to borrowers, funding of mortgage originations pending delivery to the secondary market, withdrawals by depositors, maintaining adequate collateral for pledging for public funds, trust deposits and borrowings, paying dividends to shareholders, payment of operating expenses, funding capital expenditures and maintaining deposit reserve requirements.

Liquidity is derived primarily from core deposit growth and retention; principal and interest payments on loans; principal and interest payments, sale, maturity and prepayment of securities available-for-sale; net cash provided from operations; and access to other funding sources. Other funding sources include federal funds purchased lines, FHLB advances and other capital market sources.

As of March 31, 2026, the level of liquidity and capital resources of the Company remain at a satisfactory level. Management believes that the Company's liquidity sources will be sufficient to support its existing operations for the foreseeable future.

The liquidity and capital resources discussion will cover the following topics:

●	Review of the Company's Current Liquidity Sources

●	Review of Statements of Cash Flows

●	Company Only Cash Flows

●	Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

●	Capital Resources

Review of the Company's Current Liquidity Sources

Liquid assets of cash on hand, balances due from other banks and interest-bearing deposits in financial institutions as of March 31, 2026 and December 31, 2025 totaled $118.2 million and $126.8 million, respectively, and management believes these sources provide an adequate level of liquidity given current economic conditions.

Other sources of liquidity available to the Banks as of March 31, 2026 include outstanding lines of credit with the FHLB of Des Moines, Iowa of $297.4 million, with $16.5 million of outstanding FHLB advances. Federal funds borrowing capacity at correspondent banks was $106.7 million, with no outstanding federal fund purchase balances as of March 31, 2026. The Company had securities sold under agreements to repurchase totaling $36.7 million as of March 31, 2026.

Total investments as of March 31, 2026 were $688.8 million compared to $656.0 million as of December 31, 2025. These investments provide the Company with liquidity since all of the investments are classified as available-for-sale as of March 31, 2026. The Company has $384.7 million of unpledged securities available-for-sale and interest-bearing deposits as of March 31, 2026. The investment portfolio serves an important role in the overall context of balance sheet management in terms of balancing capital utilization and liquidity. The decision to purchase or sell securities is based upon the current assessment of economic and financial conditions, including the interest rate environment, liquidity and credit considerations. The portfolio's scheduled maturities and payments represent a significant source of liquidity.

Review of the Consolidated Statements of Cash Flows

Net cash provided by operating activities for the three months ended March 31, 2026 totaled $8.4 million compared to $7.1 million for the three months ended March 31, 2025. The increase of $1.3 million in cash provided by operating activities was primarily due to higher net interest income.

Net cash provided by (used in) investing activities for the three months ended March 31, 2026 was ($22.3) million compared to $15.5 million for the three months ended March 31, 2025. The decrease of $37.8 million in cash provided by investing activities was primarily due to purchases of securities available-for-sale, partially offset by a decrease in loans and maturities of securities-available-for-sale.

Net cash provided by financing activities for the three months ended March 31, 2026 totaled $5.4 million compared to $39.6 million for the three months ended March 31, 2025. The decrease of $34.2 million in cash provided by financing activities was primarily due to a smaller increase in deposits. As of March 31, 2026, the Company did not have any external debt financing, off-balance sheet financing arrangements, or derivative instruments linked to its stock.

Review of Company Only Cash Flows

The Company's liquidity on an unconsolidated basis is heavily dependent upon dividends paid to the Company by the Banks. The Banks provide adequate liquidity to pay the Company's expenses and stockholder dividends. Dividends paid by the Banks to the Company amounted to $4.65 million and $3.2 million for the three months ended March 31, 2026 and 2025, respectively. Various federal and state statutory provisions limit the amounts of dividends banking subsidiaries are permitted to pay to their holding companies without regulatory approval. Federal Reserve policy further limits the circumstances under which bank holding companies may declare dividends. For example, a bank holding company should not continue its existing rate of cash dividends on its common stock unless its net income is sufficient to fully fund each dividend and its prospective rate of earnings retention appears consistent with its capital needs, asset quality and overall financial condition. In addition, the Federal Reserve and the FDIC have issued policy statements, which provide that insured banks and bank holding companies should generally pay dividends only out of current operating earnings. Federal and state banking regulators may also restrict the payment of dividends by order.

The Company, on an unconsolidated basis, has interest-bearing deposits totaling $4.7 million as of March 31, 2026.

Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flows Needs

No other material capital expenditures or material changes in the capital resource mix are anticipated at this time. The primary cash flow uncertainty would be a sudden decline in deposits causing the Banks to liquidate securities. Historically, the Banks have maintained an adequate level of short-term marketable investments to fund the temporary declines in deposit balances. There are no known trends in liquidity and cash flow needs as of March 31, 2026 that are of concern to management.

Capital Resources

The Company's total stockholders' equity as of March 31, 2026 totaled $207.6 million and was $324 thousand lower than the $207.9 million recorded as of December 31, 2025. The decrease in stockholders' equity was primarily the result of an increase in unrealized losses on the investment portfolio and partially offset by the retention of net income in excess of dividends. At March 31, 2026 and December 31, 2025, stockholders' equity as a percentage of total assets was 9.7%. The capital levels of the Company currently exceed applicable regulatory guidelines to be considered "well capitalized" as of March 31, 2026. Unrealized losses on the investment portfolio are excluded from regulatory capital.

Forward-Looking Statements and Business Risks

The Private Securities Litigation Reform Act of 1995 provides the Company with the opportunity to make cautionary statements regarding forward-looking statements contained in this News Release, including forward-looking statements concerning the Company's future performance and asset quality. Forward-looking statements contained in this News Release are not historical facts and are based on management's current beliefs, assumptions, predictions and expectations of future events, including the Company's future performance, taking into account all information currently available to management. These beliefs, assumptions, predictions and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to management and many of which are beyond management's control. If a change occurs, the Company's business, financial condition, liquidity, results of operations, asset quality, plans and objectives may vary materially from those expressed in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on such forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "forecasts", "continuing," "ongoing," "expects," "views," "intends" and similar words or phrases. The risks and uncertainties that may affect the Company's future performance and asset quality include, but are not limited to, the following: national, regional and local economic conditions and the impact they may have on the Company and its customers; competitive products and pricing available in the marketplace; changes in credit and other risks posed by the Company's loan and investment portfolios, including declines in commercial or residential real estate values or changes in the allowance for credit losses as dictated by new market conditions or regulatory requirements; changes in local, national and international economic conditions, including rising inflation rates; fiscal and monetary policies of the U.S. government; the imposition of tariffs and retaliatory tariffs; changes in governmental regulations affecting financial institutions (including regulatory fees and capital requirements); changes in prevailing interest rates; credit risk management and asset/liability management; the financial and securities markets; the availability of and cost associated with sources of liquidity; and other risks and uncertainties inherent in the Company's business, including those discussed under the headings "Forward-Looking Statements and Business Risks" and "Risk Factors" in the Company's Annual Report on Form 10-K for the year-ended December 31, 2025. Any forward-looking statements are qualified in their entirety by the foregoing risks and uncertainties and speak only as of the date on which such statements are made. The Company undertakes no obligation to revise or update such forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.