City Holding reports $34.61 million net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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The registrant had outstanding 14,045,160 14,076,100 shares of common stock as of August 3, November 2, 2026.

Financial Statements (Unaudited) 1 change

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Consolidated Statements of Comprehensive (Loss) Income

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Financial statements 226 changes

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Other assets 115,530 111,168

June September 30, 2026 December 31, 2025

Cash and due from banks $ 141,519 128,273 $ 152,111

Interest-bearing deposits in depository institutions 125,683 73,106 39,808

Cash and Cash Equivalents 267,202 201,379 191,919

Investment securities available for sale, at fair value (amortized cost $ 1,583,311 1,631,118 and $ 1,602,721 , net of allowance for credit losses of $ 0 at June September 30, 2026 and December 31, 2025, respectively)

Other securities 29,755 29,845 29,474

Total Investment Securities 1,506,480 1,489,468 1,532,832

Gross loans 4,501,774 4,550,140 4,503,331

Allowance for credit losses ( 19,839 19,624 ) ( 19,329 )

Net Loans 4,481,935 4,530,516 4,484,002

Bank owned life insurance 125,860 126,829 124,370

Premises and equipment, net 67,190 67,046 69,133

Accrued interest receivable 21,300 22,955 20,718

Deferred tax assets, net 31,603 46,891 30,005

Goodwill and other intangible assets, net 156,895 156,407 157,871

Other assets 144,760 111,168

Total Assets $ 6,773,995 6,786,251 $ 6,722,018

Noninterest-bearing $ 1,421,693 1,455,426 $ 1,413,621

Demand deposits 1,321,556 1,322,389 1,339,435

Savings deposits 1,288,260 1,294,202 1,244,571

Time deposits 1,308,641 1,286,123 1,303,361

Total Deposits 5,340,150 5,358,140 5,300,988

Customer repurchase agreements 377,551 367,385 367,674

1 unchanged paragraph

Other liabilities 97,345 93,676

Total Liabilities 5,965,046 5,912,338

Other liabilities 129,112 93,676

Total Liabilities 6,004,637 5,912,338

3 unchanged paragraphs

Capital surplus 174,805 174,598

Retained earnings 975,454 935,046

Treasury Stock ( 306,813 ) ( 270,967 )

Common stock, par value $ 2.50 per share: 50,000,000 shares authorized; 19,047,548 shares issued at June September 30, 2026 and December 31, 2025, less 4,995,538 4,971,448 and 4,693,613 4,995,538 shares in treasury, respectively

Capital surplus 172,904 174,598

Retained earnings 995,956 935,046

Treasury Stock ( 303,830 ) ( 270,967 )

1 unchanged paragraph

Unrealized loss on securities available-for-sale ( 81,241 130,649 ) ( 75,741 )

Underfunded pension liability ( 875 386 ) ( 875 )

Total Accumulated Other Comprehensive Loss ( 82,116 131,035 ) ( 76,616 )

Total Shareholders' Equity 808,949 781,614 809,680

Total Liabilities and Shareholders' Equity $ 6,773,995 6,786,251 $ 6,722,018

4 unchanged paragraphs

Interest and fees on loans $ 64,584 $ 62,588 $ 128,255 $ 123,505

Interest Income Three months ended June September 30, Six Nine months ended June September 30,

Interest and fees on loans $ 66,155 $ 64,606 $ 194,410 $ 188,111

1 unchanged paragraph

Taxable 12,920 15,347 26,049 29,292

Tax-exempt 1,031 712 2,057 1,436

Total Interest Income 80,211 80,291 158,979 157,679

Interest on deposits 14,924 16,492 29,680 33,345

Interest on customer repurchase agreements 2,959 3,307 5,803 6,476

Interest on FHLB advances 1,569 1,568 3,120 3,120

Total Interest Expense 19,452 21,367 38,603 42,941

Net Interest Income 60,759 58,924 120,376 114,738

Provision for (Recovery of) credit losses 436 ( 1,909 ) 1,049 ( 1,787 )

Net Interest Income After Provision for (Recovery of) Credit Losses 60,323 60,833 119,327 116,525

Service charges 7,947 7,551 15,708 15,063

Bankcard revenue 7,548 7,233 14,437 14,040

Bank owned life insurance 886 942 1,865 2,095

Other income 874 894 1,921 1,623

Total Non-Interest Income 20,764 19,523 40,764 38,621

Taxable 13,516 15,947 39,565 45,239

Tax-exempt 1,005 708 3,063 2,144

Interest on deposits in depository institutions 1,676 1,644 2,618 3,446 1,241 829 3,859 4,275

Total Interest Income 81,917 82,090 240,897 239,769

Interest on deposits 14,993 16,201 44,673 49,545

Interest on customer repurchase agreements 2,734 3,196 8,537 9,672

Interest on FHLB advances 1,585 1,586 4,706 4,706

Total Interest Expense 19,312 20,983 57,916 63,923

Net Interest Income 62,605 61,107 182,981 175,846

(Recovery of) Provision for credit losses ( 108 ) ( 528 ) 941 ( 2,315 )

Net Interest Income After (Recovery of) Provision for Credit Losses 62,713 61,635 182,040 178,161

Gains on sale of investment securities, net — 150 37 — 150 187

Unrealized gains (losses) recognized on equity securities still held, net 58 ( 263 ) 65 78 96 143 ( 268 172 )

Service charges 8,715 8,221 24,423 23,284

Bankcard revenue 7,425 7,324 21,862 21,364

Wealth and investment management fee income 3,451 3,016 6,768 5,918 3,398 3,075 10,166 8,993

Bank owned life insurance 969 919 2,834 3,014

Other income 846 851 2,767 2,474

Total Non-Interest Income 21,431 20,523 62,195 59,144

1 unchanged paragraph

Salaries and employee benefits 20,455 19,995 40,638 39,189

Occupancy related expense 2,428 2,316 5,060 4,898

Equipment and software related expense 3,746 3,554 7,411 7,024

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and 146 more changes in the filing

Note A: Background and Basis of Presentation 1 change

1 unchanged paragraph

The accompanying consolidated financial statements, which are unaudited, include all of the accounts of City Holding and its wholly-owned subsidiaries (collectively, the "Company"). All material intercompany transactions have been eliminated. The consolidated financial statements include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and financial condition for each of the periods presented. Such adjustments are of a normal recurring nature. The results of operations for the six nine months ended June September 30, 2026 are not necessarily indicative of the results of operations that can be expected for the year ending December 31, 2026. The Company's accounting and reporting policies conform with generally accepted accounting principles for interim financial information, with the instructions to Form 10-Q and Article Articles 9 and 10 of Regulation S-X. Such policies require management to make estimates and develop assumptions that affect the amounts reported in the consolidated financial statements and related footnotes. Actual results could differ from management's estimates. Certain amounts in the prior period financial statements have been reclassified to conform to the current year presentation. Such reclassifications had no impact on total shareholders' equity or net income for any period.

1 unchanged paragraph

Note B: Recent Accounting Pronouncements 2 changes

In July 2025, the FASB issued ASU No. 2025-05, " Measurement of Credit Losses for Accounts Receivable and Contract Assets." The amendment relates to estimating credit losses under CECL for current accounts receivable and current contract assets arising from revenue transactions accounted for under ASC 606, Revenue from Contracts with Customers, including those acquired in a transaction accounted for under ASC 805, Business Combinations. The ASU does not apply to other types of accounts receivable and loans. This ASU became effective for the Company on March 31, 2026. The adoption of ASU No. 2025-05 did not have a material impact on the Company's financial statements a s the Company is not currently engaged in a business combination as of June September 30, 2026 .

In November 2025, the FASB issued ASU No. 2025-08, " Financial Instruments—Credit Losses (Topic 326): Purchased Loans." The amendment simplifies accounting for acquired loans under CECL by expanding use of the gross-up method to a new category of purchased seasoned loans (PSLs). PSLs are acquired loans purchased more than 90 days after origination or acquired in a business combination. For PSLs, an allowance for credit loss is to be recorded at acquisition with an equal increase to amortized cost and remove credit loss expense on acquisition date. The ASU does not apply to credit cards, Topic 606 trade receivables, and debt securities. The Company elected to early adopt ASU as of December 31, 2025. The adoption of ASU No. 2025-08 did not have a material impact to the Company's financial statements as the Company is not currently engaged in a business combination as of June September 30, 2026.

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Note C: Reportable Segment 1 change

3 unchanged paragraphs

The accounting policies of the community banking segment are the same as those for the Company described in Note A . In accordance with ASC Topic 280, the Company has concluded that consolidated net income is the measure of segment profit or loss that is required to be reported because it is the measure determined in accordance with measurement principles that are most consistent with US GAAP. As the Company only has one reportable segment, total segment net income and total segment assets are equivalent to the results disclosed in the accompanying Consolidated Statements of Income (reported as "Net Income Available to Common Shareholders") and Consolidated Balance Sheets (reported as "Total Assets"), respectively.

Note D: Investments 41 changes

1 unchanged paragraph

June September 30, 2026 December 31, 2025

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value political subdivisions $ 185,915 183,806 $ 905 12 $ 9,486 21,818 $ 177,334 162,000 $ 189,276 $ 538 $ 10,090 $ 179,724

1 unchanged paragraph

U.S. government agencies 1,371,095 2,395 99,894 1,273,596 1,421,050 32 149,066 1,272,016 1,387,057 7,836 97,104 1,297,789

Private label 5,055 5,052 — 72 4,983 92 4,960 5,068 — 36 5,032

Trust preferred securities 4,616 4,619 — 78 4,538 91 4,528 4,612 — 188 4,424

Corporate securities 16,630 203 559 16,274 16,591 222 694 16,119 16,708 172 491 16,389

Total Securities Available-for-Sale $ 1,583,311 1,631,118 $ 3,503 266 $ 110,089 171,761 $ 1,476,725 1,459,623 $ 1,602,721 $ 8,546 $ 107,909 $ 1,503,358

The Company's other investment securities include marketable equity securities and non-marketable equity securities held for investment. At June September 30, 2026 and December 31, 2025, the Company held $ 5.7 million and $ 5.6 million, respectively, in marketable equity securities. Changes in the fair value of the marketable equity securities are recorded in "unrealized losses recognized on equity securities still held, net" in the Consolidated Statements of Income. The Co mpany's non-marketable securities consist of securities with limited marketability, such as stock in the Federal Reserve Bank ("FRB") or the Federal Home Loan Bank ("FHLB"). At June September 30, 2026 and December 31, 2025, the Company held $ 24.2 24.1 million and $ 23.9 million, respectively, in non-marketable equity securities. These securities are carried at cost due to the restrictions placed on their transferability.

The majority of the Company's investment securities are mortgage-backed. These securities are collateralized by both residential and commercial properties. The mortgage-backed securities in which the Company has invested are predominantly issued by government-sponsored agencies such as Fannie Mae, Freddie Mac, and Ginnie Mae. At June September 30, 2026 and December 31, 2025, there were no securities of any non-governmental issuer whose aggregate carrying value or estimated fair value exceeded 10% of shareholders' equity.

Certain investment securities owned by the Company were in an unrealized loss position (i.e., amortized cost basis exceeded the estimated fair value of the securities) as of June September 30, 2026 and December 31, 2025. The following table shows the gross unrealized losses and fair value of the Company's investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

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Obligations of states and political subdivisions $ 5,612 $ 57 $ 122,499 $ 9,429 $ 128,111 $ 9,486

Obligations of states and political subdivisions $ 47,167 $ 4,490 $ 113,973 $ 17,328 $ 161,140 $ 21,818

1 unchanged paragraph

U.S. Government agencies 267,591 1,870 759,466 98,024 1,027,057 99,894

Private label — — 4,983 72 4,983 72

Corporate securities — — 14,391 559 14,391 559

Total available-for-sale $ 273,203 $ 1,927 $ 905,877 $ 108,162 $ 1,179,080 $ 110,089

U.S. Government agencies 551,449 20,597 695,628 128,469 1,247,077 149,066

Private label — — 4,960 92 4,960 92

Trust preferred securities — — 4,538 78 4,538 78 4,528 91 4,528 91

Corporate securities — — 14,205 694 14,205 694

Total available-for-sale $ 598,616 $ 25,087 $ 833,294 $ 146,674 $ 1,431,910 $ 171,761

10 unchanged paragraphs

As of June September 30, 2026, management does not intend to sell any impaired security, and it is not more likely than not that it will be required to sell any impaired security before the recovery of its amortized cost basis. The unrealized losses on debt securities are primarily the result of interest rate changes, credit spread fluctuations on agency-issued mortgage-related securities, general financial market uncertainty and market volatility. These conditions should not prohibit the Company from receiving its contractual principal and interest payments on its debt securities. The fair value is expected to recover as the securities a pproach their maturity date or repricing date. Due to the previously mentioned factors, as of June September 30, 2026, management believes the unrealized losses detailed in the table above are temporary and therefore no allowance for credit losses has been recognized on the Company's securities.. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss will be recognized in net income in the period the other-than-temporary impairment is identified, while any noncredit loss will be recognized in other comprehensive income.

The amortized cost and estimated fair value of debt securities at June September 30, 2026, by contractual maturity, is shown in the following table (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.

2 unchanged paragraphs

Due after ten years 1,160,774 1,072,833

Total $ 1,583,311 $ 1,476,725

Due in one year or less $ 11,206 4,224 $ 11,152 4,199

Due after one year through five years 136,577 131,964 123,047 116,965

Due after five years through ten years 274,754 260,776 305,436 280,387

Due after ten years 1,198,411 1,058,072

Total $ 1,631,118 $ 1,459,623

1 unchanged paragraph

Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

Proceeds on sales of available for sale securities $ — $ 14,882 51,918 $ — $ 14,882 66,800

Gross realized gains on available for sale securities sold $ — $ 237 319 $ — $ 237 556

Gross realized losses on available for sale securities sold — ( 87 282 ) — ( 87 369 )

Net realized available for sale securities gains (losses) $ — $ 150 37 $ — $ 150 187

Gross unrealized gains recognized on equity securities still held $ 109 158 $ 26 96 $ 99 230 $ 62 119

Gross unrealized losses recognized on equity securities still held ( 51 ) 80 ) 289 — ( 34 87 ) ( 330 291 )

Net unrealized (losses) gains recognized on equity securities still held $ 58 78 $ ( 263 ) 96 $ 65 143 $ ( 268 172 )

The carrying value of securities pledged to secure public deposits and for other purposes as required or permitted by law approximated $ 713 688 million and $ 716 million at June September 30, 2026 and December 31, 2025, respectively.

Note E: Loans 20 changes

1 unchanged paragraph

Hotels 396,079 398,608

Multi-family 231,946 237,424

Home equity 231,057 224,701

Consumer 39,906 47,353

June September 30, 2026 December 31, 2025

Commercial and industrial $ 454,122 474,251 $ 453,975

1-4 Family 223,301 226,367 210,232

Hotels 403,794 398,608

Multi-family 230,172 237,424

Non Residential Non-Owner Occupied 765,358 772,072 767,580

Non Residential Owner Occupied 253,471 250,683 253,398

Commercial real estate 1,870,155 1,883,088 1,867,242

Residential real estate 1,906,534 1,915,322 1,910,060

Home equity 239,264 224,701

Consumer 38,215 47,353

Gross loans 4,501,774 4,550,140 4,503,331

Allowance for credit losses ( 19,839 19,624 ) ( 19,329 )

Net loans $ 4,481,935 4,530,516 $ 4,484,002

1 unchanged paragraph

Commercial real estate $ 43,363 46,948 $ 35,781

Residential real estate 11,144 12,753 9,907

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Note F: Allowance for Credit Losses 261 changes

The following tables summarize the activity in the allowance for credit losses, by portfolio loan classification, for the three and six nine months ended June September 30, 2026 and 2025 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments.

1 unchanged paragraph

Six months ended June 30, 2026

Commercial and industrial $ 3,083 $ ( 119 ) $ 75 $ 268 $ 3,307

Residential real estate 5,909 ( 281 ) 39 260 5,927

Home equity 608 ( 108 ) 162 ( 41 ) 621

Consumer 177 ( 168 ) 40 130 179

Nine months ended September 30, 2026

Commercial and industrial $ 3,083 $ ( 121 ) $ 80 $ 572 $ 3,614

1-4 Family 1,426 ( 7 ) 23 80 1,522 29 ( 1 ) 1,447

Hotels 2,009 — 220 ( 289 358 ) 1,940 1,871

Multi-family 1,238 — — 403 1,641 12 1,250

Non Residential Non-Owner Occupied 3,102 — 335 ( 567 636 ) 2,870 2,801

Non Residential Owner Occupied 1,777 ( 850 ) 100 805 1,832 807 1,834

Commercial real estate 9,552 ( 857 ) 678 432 9,805 684 ( 176 ) 9,203

Residential real estate 5,909 ( 467 ) 142 426 6,010

Home equity 608 ( 182 ) 188 19 633

Consumer 177 ( 202 ) 89 100 164

1 unchanged paragraph

Six months ended June 30, 2025

Commercial and industrial $ 4,541 $ ( 30 ) $ 52 $ ( 1,553 ) $ 3,010

Commercial real estate 9,837 ( 220 ) 81 128 9,826

Residential real estate 5,731 ( 49 ) 50 ( 286 ) 5,446

Home equity 643 ( 98 ) 100 ( 97 ) 548

Consumer 381 ( 165 ) 34 21 271

Nine months ended September 30, 2025

Commercial and industrial $ 4,541 $ ( 37 ) $ 452 $ ( 2,125 ) $ 2,831

1-4 Family 1,366 ( 33 ( 9 2 ) 1,390 45 16 1,425

Hotels 2,355 ( 220 ) — ( 1 76 ) 2,134 2,059

Multi-family 1,390 — — 28 1,418 106 1,496

Non Residential Non-Owner Occupied 3,001 — 48 83 81 3,130 3,165

Non Residential Owner Occupied 1,725 — 155 ( 29 1,754 92 ) 1,788

Commercial real estate 9,837 ( 222 ) 283 35 9,933

Residential real estate 5,731 ( 209 ) 85 ( 11 ) 5,596

Home equity 643 ( 153 ) 164 ( 218 ) 436

Consumer 381 ( 174 ) 50 4 261

1 unchanged paragraph

Commercial and industrial $ 3,035 $ ( 115 ) $ 70 $ 317 $ 3,307

Hotels 1,945 — — ( 5 ) 1,940

Residential real estate 5,844 ( 147 ) 9 221 5,927

Home equity 598 ( 46 ) 72 ( 3 ) 621

Consumer 145 ( 97 ) 20 111 179

Three months ended June September 30, 2026

Commercial and industrial $ 3,307 $ ( 2 ) $ 5 $ 304 $ 3,614

1-4 Family 1,522 — 1 ) 8 6 ( 7 81 ) 1,522 1,447

Hotels 1,940 — — ( 69 ) 1,871

Multi-family 1,209 1,641 — — 432 1,641 ( 391 ) 1,250

Non Residential Non-Owner Occupied 3,086 2,870 — 335 — 551 ( 2,870 69 ) 2,801

Non Residential Owner Occupied 1,811 — 100 1,832 — 79 — 1,832 2 1,834

Commercial real estate 9,573 ( 1 9,805 — 443 6 ( 210 608 ) 9,805 9,203

Residential real estate 5,927 ( 186 ) 103 166 6,010

Home equity 621 ( 74 ) 26 60 633

Consumer 179 ( 34 ) 49 ( 30 ) 164

1 unchanged paragraph

Commercial and industrial $ 4,761 $ — $ 15 $ ( 1,766 ) $ 3,010

Hotels 2,130 — — 4 2,134

Residential real estate 5,420 ( 49 ) 49 26 5,446

Home equity 593 ( 97 ) 96 ( 44 ) 548

Consumer 287 ( 36 ) 25 ( 5 ) 271

Three months ended June September 30, 2025

Commercial and industrial $ 3,010 $ ( 7 ) $ 400 $ ( 572 ) $ 2,831

1-4 Family 1,420 — 6 1,390 ( 36 2 ) 1,390 12 25 1,425

Hotels 2,134 — — ( 75 ) 2,059

Multi-family 1,409 1,418 — — 9 1,418 78 1,496

Non Residential Non-Owner Occupied 3,156 — 45 3,130 — 71 35 — 3,130 3,165

Non Residential Owner Occupied 1,780 — 1,754 — 155 ( 26 121 ) 1,754 1,788

Commercial real estate 9,895 9,826 ( 51 2 ) 120 202 ( 9,826 93 ) 9,933

Residential real estate 5,446 ( 160 ) 35 275 5,596

Home equity 548 ( 55 ) 64 ( 121 ) 436

Consumer 271 ( 9 ) 16 ( 17 ) 261

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The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 90 days still accruing as of June September 30, 2026 (in thousands):

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Commercial & Industrial $ 352 $ 25 $ —

Residential Real Estate — 3,186 60

Home Equity — 132 22

Total $ 4,882 $ 5,135 $ 82

Commercial & Industrial $ 315 $ 310 $ —

Non Residential Non-Owner Occupied — 37 — —

Non Residential Owner Occupied 4,530 1,326 4,477 1,950 —

Commercial Real Estate 4,530 1,792 4,477 2,363 —

Residential Real Estate — 2,866 128

Total $ 4,792 $ 5,789 $ 132

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The Company recognized no interest income on non-accrual loans during each of the three and six nine months ended June September 30, 2026 and 2025.

As of June September 30, 2026, the Company had one commercial and industrial loan and three owner occupied commercial real estate loans that were considered individually evaluated collateral-dependent loans totaling $ 4.9 4.8 million. The company had one commercial and industrial loan, one hotel loan, and three owner occupied commercial real estate individually evaluated collateral dependent loans recorded at $ 7.4 million as of December 31, 2025. Changes in the fair value of the collateral for collateral dependent loans are reported as a provision for credit loss or a recovery of credit loss in the period of change.

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The following tables present the aging of the amortized cost basis in past-due loans as of June September 30, 2026 and December 31, 2025 by class of loan (in thousands):

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Note G: Derivative Instruments 17 changes

The Company has exposure to certain risks arising from both its business operations and economic conditions, including interest rate risk, which are managed through use of derivative instruments. The Company maintains non-hedging interest rate swap derivatives with customer counterparties. Additionally, the Company has fair value hedge derivative relationships on certain available-for-sale securities and loan relationships, all of which matured prior to September 30, 2026.

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Pursuant to the Company's agreements with certain of its derivative financial institution counterparties, the Company may receive collateral or post collateral, generally in the form of cash or securities, based upon mark-to-market positions. The Company received collateral with a value of $ 32.0 5.7 million and $ 26.1 million as of June September 30, 2026 and December 31, 2025, respectively.

1 unchanged paragraph

As of June September 30, 2026 and December 31, 2025, the Company primarily utilizes non-hedging derivative financial instruments with commercial banking customers to facilitate their interest rate management strategies. For these instruments, the Company acts as an intermediary for its customers and has offsetting contracts with financial institution counterparties. Changes in the fair value of these underlying derivative contracts generally offset each other and do not significantly impact the Company's results of operations.

1 unchanged paragraph

June September 30, 2026 December 31, 2025

3 unchanged paragraphs

Loan interest rate swap - assets $ 111,078 10,983 $ 1,411 1,070 $ 284,783 $ 3,879

Loan interest rate swap - liabilities 653,035 33,125 740,822 53,066 478,859 30,493

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Loan interest rate swap - assets 663,035 33,851 750,822 53,918 496,859 31,201

Loan interest rate swap - liabilities 111,078 1,411 10,983 1,070 284,783 3,879

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Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

1 unchanged paragraph

Other (expense) income - derivative assets $ 1,445 $ ( 4,350 ) $ 1,029 $ ( 12,354 )

Other income (expense) - derivative liabilities ( 1,445 ) 4,350 ( 1,029 ) 12,354

Other income (expense) - derivative assets $ 20,765 $ ( 2,105 ) $ 21,794 $ ( 14,459 )

Other (expense) income - derivative liabilities 20 ( 119 20,765 ) 18 2,105 ( 279 21,794 ) 14,459

Other income (expense) - derivative liabilities 126 ( 63 ) 144 ( 343 )

1 unchanged paragraph

During the year ended December 31, 2023, the Company entered into a fair value hedge agreement to reduce the interest rate risk associated with the change in fair value of certain loans. The tot al notional amount of these agreements was $ 100 million. During the six nine months ended June September 30, 2026, the fair value hedge agreements matured. The gains or losses on these hedges are recognized in current earnings as fair value changes.

1 unchanged paragraph

June September 30, 2026 December 31, 2025

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Note H: Employee Benefit Plans 24 changes

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Restricted shares are forfeited if the awarded officer or employee terminates his employment with the Company prior to the lapsing of restrictions. The Company records forfeitures of restricted stock as treasury share repurchases and any compensation cost previously recognized is reversed in the period of forfeiture. Recipients of restricted shares do not pay any cash consideration to the Company for the shares, and, except for restricted stock units and performance share units, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. For restricted shares that have performance-based criteria, management has evaluated those criteria and has determined that, as of June September 30, 2026, the criteria were probable of being met.

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Six months ended June 30,

Nine months ended September 30,

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Granted 16,493 119.13 40,495 114.73

Outstanding at June 30 114,907 $ 103.06 133,324 $ 97.59

Granted 40,923 128.86 40,745 114.75

Vested/Forfeited ( 35,210 35,685 ) 135.89 134.90 ( 42,120 ) 72.16

Outstanding at September 30 138,862 $ 108.84 133,574 $ 97.63

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

Stock-based compensation expense associated with restricted shares, RSUs, and PSUs $ 921 1,082 $ 838 908 $ 1,779 2,861 $ 1,557 2,466

At period-end: June September 30, 2026

Unrecognized stock-based compensation expense associated with restricted shares $ 6,508 8,723

Weighted average period (in years) in which the above amount is expected to be recognized 2.7 3.3

Shares issued in conjunction with restricted stock awards are issued from available treasury shares. If no treasury shares are available, new shares would be issued from available authorized shares. During the six nine months ended June September 30, 2026 and 2025, all shares issued in connection with restricted stock awards were issued from available treasury stock.

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Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

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Interest cost $ 119 $ 131 $ 237 $ 262

Net amortization and deferral 44 51 88 101

Net Periodic Pension (Benefit) Cost $ ( 42 ) $ ( 24 ) $ ( 84 ) $ ( 48 )

Interest cost $ 83 $ 131 $ 320 $ 393

Expected return on plan assets ( 205 115 ) ( 206 ) ( 409 524 ) ( 411 616 )

Net amortization and deferral 39 51 127 151

Net Periodic Pension Cost (Benefit) $ 7 $ ( 24 ) $ ( 77 ) $ ( 72 )

Note I: Commitments and Contingencies 8 changes

3 unchanged paragraphs

June September 30, 2026 December 31, 2025

1 unchanged paragraph

Other commitments 282,169 253,942

Home equity lines $ 266,866 270,677 $ 262,194

Commercial real estate 90,246 85,588 106,455

Other commitments 284,529 253,942

Standby letters of credit 1,824 1,997 1,976

Commercial letters of credit 9,512 10,475 7,935

1 unchanged paragraph

The Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately resolved. There can be no assurance that current legal actions will have an immaterial impact on financial results, either positive or negative, or that no material legal actions may be presented in the future. As of June September 30, 2026 management expects the resolution of existing legal actions will not have a material impact on the Company's financial statements.

Note J: Accumulated Other Comprehensive Loss 18 changes

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Three months ended September 30, Nine months ended September 30,

3 unchanged paragraphs

Other comprehensive (loss) before reclassifications — ( 853 ) ( 853 ) — ( 5,500 ) ( 5,500 )

Beginning Balance $ ( 875 ) $ ( 80,388 81,241 ) $ ( 81,263 82,116 ) $ ( 875 ) $ ( 75,741 ) $ ( 76,616 )

Other comprehensive (loss) before reclassifications 489 ( 49,408 ) ( 48,919 ) 489 ( 54,908 ) ( 54,419 )

1 unchanged paragraph

Ending Balance $ ( 875 ) $ ( 81,241 ) $ ( 82,116 ) $ ( 875 ) $ ( 81,241 ) $ ( 82,116 )

Beginning Balance $ ( 1,442 ) $ ( 98,509 ) $ ( 99,951 ) $ ( 1,442 ) $ ( 114,277 ) $ ( 115,719 )

Other comprehensive income before classifications — 4,568 4,568 — 20,336 20,336

Ending Balance $ ( 386 ) $ ( 130,649 ) $ ( 131,035 ) $ ( 386 ) $ ( 130,649 ) $ ( 131,035 )

Ending Beginning Balance $ ( 1,442 ) $ ( 94,056 ) $ ( 95,498 ) $ ( 1,442 ) $ ( 94,056 114,277 ) $ ( 95,498 115,719 )

Other comprehensive income before classifications — 11,299 11,299 — 31,635 31,635

Amounts reclassified from other comprehensive income — ( 115 28 ) ( 115 28 ) — ( 115 143 ) ( 115 143 )

Ending Balance $ ( 1,442 ) $ ( 82,785 ) $ ( 84,227 ) $ ( 1,442 ) $ ( 82,785 ) $ ( 84,227 )

1 unchanged paragraph

Three months ended Six Nine months ended Affected line item

June September 30, June September 30, in the Consolidated Statements

2 unchanged paragraphs

Net securities gains reclassified into earnings $ — $ 150 37 $ — $ 150 187 Gains on sale of investment securities, net

Related income tax expense — ( 35 9 ) — ( 35 44 ) Income tax expense

Net effect on accumulated other comprehensive loss $ — $ 115 28 $ — $ 115 143

Note K: Earnings per Share 21 changes

1 unchanged paragraph

Three months ended June 30, Six months ended June 30,

Net income available to common shareholders $ 33,298 $ 33,387 $ 65,033 $ 63,729

Net earnings allocated to common shareholders $ 33,056 $ 33,081 $ 64,506 $ 63,188

Distributed earnings allocated to common stock $ 12,125 $ 11,346 $ 24,251 $ 22,691

Net earnings allocated to common shareholders $ 33,056 $ 33,081 $ 64,506 $ 63,188

Average shares outstanding 14,046 14,466 14,151 14,541

Three months ended September 30, Nine months ended September 30,

Net income available to common shareholders $ 34,609 $ 35,188 $ 99,642 $ 98,917

Less: earnings allocated to participating securities ( 242 449 ) ( 306 323 ) ( 527 975 ) ( 541 864 )

Net earnings allocated to common shareholders $ 34,160 $ 34,865 $ 98,667 $ 98,053

Distributed earnings allocated to common stock $ 13,938 $ 12,495 $ 38,188 $ 35,186

Undistributed earnings allocated to common stock 20,931 21,735 40,255 40,497 20,222 22,370 60,479 62,867

Net earnings allocated to common shareholders $ 34,160 $ 34,865 $ 98,667 $ 98,053

Average shares outstanding 14,027 14,457 14,109 14,512

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Employee stock awards 16 5 18 10

Basic earnings per share $ 2.35 $ 2.29 $ 4.55 $ 4.35

Diluted earnings per share $ 2.35 $ 2.29 $ 4.55 $ 4.35

Employee stock awards 22 6 19 9

Shares for diluted earnings per share 14,062 14,471 14,169 14,551 14,049 14,463 14,128 14,521

Basic earnings per share $ 2.44 $ 2.41 $ 6.99 $ 6.76

Diluted earnings per share $ 2.43 $ 2.41 $ 6.98 $ 6.75

1 unchanged paragraph

Note L: Fair Value Measurements 37 changes

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Derivatives . Derivatives are reported at fair value utilizing Level 2 inputs. The Company utilizes a market approach by obtaining dealer quotations to value its customer interest rate swaps. The Company's derivatives are included within "other assets" and "other liabilities" in the accompanying consolidated balance sheets. Derivative assets are typically secured through securities with financial counterparties or cross collateralization with a borrowing customer. Derivative liabilities are typically secured by the Company pledging securities to financial counterparties or, in the case of a borrowing customer, by the right of setoff. The Company considers factors such as the likelihood of default by itself and its counterparties, right of setoff, and remaining maturities in determining the appropriate fair value adjustments. All derivative counterparties approved by the Company's Asset and Liability Committee ("ALCO") are regularly reviewed, and appropriate business action is taken to adjust the exposure to certain counterparties, if necessary. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of marketable collateral securing the position. This approach used to estimate impacted exposures to counterparties is also used by the Company to estimate its own credit risk in derivative liability positions. To date, no material losses have been incurred due to a counterparty's inability to pay any undercollateralized position. There was no significant change in the value of derivative assets and liabilities attributed to credit risk that would have resulted in a derivative credit risk valuation adjustment at June September 30, 2026.

3 unchanged paragraphs

Obligations of states and political subdivisions $ 177,334 162,000 $ — $ 177,334 162,000 $ —

1 unchanged paragraph

Marketable equity securities 5,633 1,837 3,796 —

Derivative assets 35,262 — 35,262 —

U.S. Government agencies 1,273,596 1,272,016 — 1,273,596 1,272,016 —

Private label 4,983 4,960 — 4,983 4,960 —

Trust preferred securities 4,538 4,528 — 4,538 4,528 —

Corporate securities 16,274 16,119 — 16,274 16,119 —

Marketable equity securities 5,711 1,829 3,882 —

Derivative assets 54,989 — 54,989 —

1 unchanged paragraph

Derivative liabilities 34,536 — 34,536 —

Derivative liabilities 54,136 — 54,136 —

3 unchanged paragraphs

Other real estate owned 495 180 — — 495 180

15 unchanged paragraphs

No transfers into or out of Level 3 of the fair value hierarchy occurred during the three and six nine months ended June September 30, 2026 or the year ended December 31, 2025.

The Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3) include individually evaluated loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for credit losses based upon the fair value of the underlying collateral (in thousands). The fair value of individually evaluated loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent individually evaluated loans primarily relate to discounts applied to the customers' reported amount of collateral. The amount of collateral discount depends upon the marketability of the underlying collateral. Generally, the Company has applied collateral discounts, ranging from 10 % to 30 %. The Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis as of June September 30, 2026 or December 31, 2025.

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Marketable equity securities 5,633 5,633 1,837 3,796 —

Net loans 4,481,935 4,383,332 — — 4,383,332

Accrued interest receivable 21,300 21,300 — 21,300 —

Derivative assets 35,262 35,262 — 35,262 —

Deposits 5,340,150 5,330,098 4,031,509 1,298,589 —

Securities sold under agreements to repurchase 377,551 377,551 — 377,551 —

FHLB long-term advances 150,000 150,113 — 150,113 —

Derivative liabilities 34,536 34,536 — 34,536 —

Cash and cash equivalents $ 267,202 201,379 $ 267,202 201,379 $ 267,202 201,379 $ — $ —

Securities available-for-sale 1,476,725 1,476,725 1,459,623 1,459,623 — 1,476,725 1,459,623 —

Marketable equity securities 5,711 5,711 1,829 3,882 —

Net loans 4,530,516 4,430,844 — — 4,430,844

Accrued interest receivable 22,955 22,955 — 22,955 —

Derivative assets 54,989 54,989 — 54,989 —

Deposits 5,358,140 5,346,228 4,072,017 1,274,211 —

Customer repurchase agreements 367,385 367,385 — 367,385 —

FHLB advances 150,000 148,608 — 148,608 —

Accrued interest payable 5,593 5,593 5,479 5,479 — 5,593 5,479 —

Derivative liabilities 54,136 54,136 — 54,136 —

7 unchanged paragraphs

Securities sold under agreements to repurchase 367,674 367,674 — 367,674 —

Customer repurchase agreements 367,674 367,674 — 367,674 —

FHLB long-term advances 150,000 151,967 — 151,967 —

2 unchanged paragraphs

MD&A 351 changes

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The Company uses a number of economic variables in its scenarios to estimate the ACL, with the most significant drivers being an unemployment rate forecast and qualitative adjustments. In the June September 30, 2026 and December 31, 2025 estimates, the Company assumed a 2-year unemployment forecast range of 4.2% to 4.6%. Historical loss rates from periods where the average unemployment rate matches the forecast range are considered when calculating the forecast period loss rate.

Based on sensitivity analysis of all portfolios, a 0.0050% change (slight improvement or decline on Bank's scale) in all 11 qualitative risk factors (where assigned) would have a $2.4 million impact on the reserve allocation. Changing each factor by 0.01% (moderate improvement or decline) would have a $4.7 $4.8 million impact. Management recognizes that these are extreme scenarios and it is very unlikely that all risk factors would change by 0.005% or 0.01% simultaneously. For the June September 30, 2026 estimate, management did not adjust any qualitative factors utilized assigned a slight decline (0.005%) to the interest rate risk factor in each pool which increased the previous quarter. reserve by $0.2 million.

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Six Nine months ended June September 30, 2026 vs. 2025

1 unchanged paragraph

Six months ended June 30, 2026

Nine months ended September 30, 2026

1 unchanged paragraph

ROATCE* 20.0 % 21.7 %

Earnings per common share, basic $ 4.55 6.99 $ 4.35 6.76

Earnings per common share, diluted $ 4.55 6.98 $ 4.35 6.75

Dividend payout ratio 38.2 39.2 % 36.3 %

Average equity to average assets ratio 12.1 % 11.5 11.6 %

(1) ROA (Return on Average Assets) is a measure of the effectiveness of asset utilization. ROE (Return on Average Equity) is a measure of the return on shareholders' investment. ROATCE (Return on Average Tangible Common Equity) is a measure of the return on shareholders' equity, less intangible assets.

The Company's net interest income was $120.4 $183.0 million for the six nine months ended June September 30, 2026 compared to $114.7 $175.8 million for the six nine months ended June September 30, 2025 (see Net Interest Income ). The Company recorded a provision for credit losses of $1.0 $0.9 million for the six nine months ended June September 30, 2026 compared to a recovery of credit losses of $1.8 $2.3 million for the six nine months ended June September 30, 2025 (see Allowance for Credit Losses ). As further discussed under the caption Non-Interest Income and Non-Interest Expense , non-interest income increased $2.1 $3.1 million and non-interest expense increased $2.4 $5.0 million for the six nine months ended June September 30, 2026 from the six nine months ended June September 30, 2025.

Three months ended June September 30, 2026 vs. 2025

1 unchanged paragraph

Three months ended June September 30,

1 unchanged paragraph

Dividend payout ratio 37.0 % 34.5 %

Earnings per common share, basic $ 2.35 2.44 $ 2.29 2.41

Earnings per common share, diluted $ 2.35 2.43 $ 2.29 2.41

Dividend payout ratio 41.1 % 36.1 %

Average equity to average assets ratio 11.9 12.0 % 11.4 11.8 %

1 unchanged paragraph

The Company's net interest income was $60.8 $62.6 million for the three months ended June September 30, 2026 compared to $58.9 $61.1 million for the three months ended June September 30, 2025 (see Net Interest Income ). The Company recorded a $0.4 $0.1 million provision for recovery of credit losses for the three months ended June September 30, 2026 compared to a $1.9 $0.5 million recovery of credit losses for the three months ended June September 30, 2025 (see Allowance for Credit Losses ). As further discussed under the caption Non-Interest Income and Non-Interest Expense , non-interest income increased $1.2 $0.9 million and non-interest expense increased $0.6 $2.6 million for the three months ended June September 30, 2026 compared to the three months ended June September 30, 2025.

2 unchanged paragraphs

June September 30, December 31,

1 unchanged paragraph

Cash and cash equivalents $ 267.2 $ 191.9 $ 75.3 39.2 %

Gross loans 4,501.8 4,503.3 (1.5) —

Total deposits 5,340.2 5,301.0 39.2 0.7

Gross loans remained stable at $4.50 billion at December 31, 2025 and June 30, 2026, respectively. Consumer loans decreased $7.4 million and r esidential real estate loans decreased $3.5 million during the first six months of 2026. These decreases were essentially offset by increases in home equity ($6.4 million) and commercial real estate ($2.9 million) loans.

Cash and cash equivalents $ 201.4 $ 191.9 $ 9.5 5.0 %

Total investment securities 1,506.5 1,489.5 1,532.8 (26.3) (1.7) (43.3) (2.8)

Gross loans 4,550.1 4,503.3 46.8 1.0

Total deposits 5,358.1 5,301.0 57.1 1.1

Cash and cash equivalents increased $75.3 $9.5 million (39.2%) (5.0%) from December 31, 2025 to $267.2 $201.4 million at June September 30, 2026 primarily due to income from operations, an increase in deposit balances and proceeds from maturities and calls of available-for-sale securities that were partially offset by cash utilized for purchases of available-for-sale securities, common stock repurchases, and cash dividend payments.

Total investment securities decreased $26.3 $43.3 million (1.7)% (2.8%) from December 31, 2025 to $1.51 $1.49 billion at June September 30, 2026, due to maturities and calls of available-for-sale securities and unrealized losses arising on available-for-sale securities that were partially offset by purchases of available-for-sale securities.

Gross loans increased $46.8 million ( 1.0%) from December 31, 2025 to $4.55 billion at September 30, 2026. Commercial and industrial loans increased $20.3 million (4.5%), commercial real estate loans increased $15.8 million (0.9%), and home equity loans increased $14.6 million (6.5%). These increases were partially offset by a decrease in consumer loans of $9.1 million.

Total deposits increased $39.2 $57.1 million (0.7%) (1.1%) from December 31, 2025 to $5.3 $5.4 billion at June September 30, 2026. Savings deposits increased $43.7 $49.6 million and non interest-bearing demand deposit balances increased $8.1 million, and time deposit balances increased $5.3 $41.8 million. These increases were partially offset by a decrease decreases of $17.9 $17.2 million in time deposits and $17.0 million in interest-bearing demand deposits.

Six Nine months ended June September 30, 2026 vs. 2025

The Company's net interest income increased from $114.7 $175.8 million for the six nine months ended June September 30, 2025 to $120.4 $183.0 million for the six nine months ended June September 30, 2026. The Company's tax equivalent net interest income increased $5.8 $7.4 million to $120.9 $183.8 million for the six nine months ended June September 30, 2026 from $115.1 $176.4 million in the six nine months ended June September 30, 2025. Net interest income increased due to an increase in average loan balances ($197.3 ($184.5 million) and decrease in cost of interest-bearing liabilities (23 (21 basis points) which increased net interest income by $5.7 $8.0 million and $5.6 $7.5 million, respectively.

These increases were partially offset by a decrease in yield earned on investment securities (33 (35 basis points) which decreased net interest income by $2.3 $3.6 million and higher average balances of interest-bearing liabilities ($79.4 ($74.7 million) decreased net interest income by $1.3 $1.5 million. In addition, a decrease in the yield on loans (3 basis points) and a decrease in the average balance balance of investment securities ($20.0 million) decreased net interest by $1.0 million, respectively. The Company's reported net interest margin increased slightly from 3.90% 3.95% for the six nine months ended June September 30, 2025 to 3.97% 4.00% for the six nine months ended June September 30, 2026.

2 unchanged paragraphs

Assets Six months ended June 30,

Assets Nine months ended September 30,

4 unchanged paragraphs

Total loans 4,494,331 128,255 5.75 4,297,023 123,506 5.80

Taxable 1,341,493 26,049 3.92 1,367,994 29,292 4.32

Total securities 1,499,909 28,654 3.85 1,499,342 31,109 4.18

Deposits in depository institutions 142,608 2,618 3.70 155,820 3,446 4.46

Total interest-earning assets 6,136,848 159,527 5.24 5,952,185 158,061 5.36

Other assets 286,606 299,017

Total assets $ 6,730,757 $ 6,555,555

Interest-bearing demand deposits $ 1,325,285 $ 5,558 0.85 % $ 1,339,633 $ 6,629 1.00 %

Savings deposits 1,268,047 4,798 0.76 1,242,470 4,573 0.74

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and 304 more changes in the filing

Controls and procedures 1 change

and 1 more change in the filing

Unregistered sales of stock 9 changes

and 9 more changes in the filing

Other information 1 change

1 unchanged paragraph

and 1 more change in the filing

Exhibits 2 changes

27 unchanged paragraphs

and 2 more changes in the filing