Earnings release
Page 1
Exhibit 99.1 Press Release October 29, 2026 FOR IMMEDIATE RELEASE For more information contact: Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766 WEST BANCORPORATION, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS AND DECLARES QUARTERLYDIVIDEND West Des Moines, IA - West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2026 net income of $11.6 million, or $0.67 per diluted common share, compared to second quarter 2026 net income of $11.1 million, or $0.64 per diluted common share, and third quarter 2025 net income of $9.3 million, or $0.55 per diluted common share. On October 28, 2026, the Company’s Board of Directors declared a regular quarterly dividend of $0.26 per common share. The dividend is payable on November 25, 2026, to stockholders of record on November 11, 2026. David Nelson, President and Chief Executive Officer of the Company, commented, “Our net income for the first nine months of 2026 has increased 32 percent compared to the first nine months of 2025. Our annualized return on average equity has improved to 16.18 percent for the first nine months of 2026, compared to 14.27 percent for the first nine months of 2025 and our annualized return on average assets has grown to 1.16 percent in the third quarter of 2026. We are producing stronger profitability through margin expansion and expense discipline, while maintaining a strict underwriting culture and strong asset quality. Our balance sheet management strategies have resulted in a reduction in wholesale funding and steady growth in net interest income.” Mr. Nelson added, “Our balance sheet remains exceptionally strong, supported by solid capital and liquidity levels. Credit quality remains pristine with no loans on nonaccrual status at September 30, 2026. Additionally, this marks our ninth consecutive quarter-end with no loans greater than 30 days past due.” Third Quarter 2026 Compared to Second Quarter 2026 Overview • Quarterly net income was $11.6 million, an increase of $0.5 million, or 5.01 percent, compared to prior quarter. • Quarterly return on average equity increased to 16.41 percent, compared to 16.21 percent in prior quarter. • Loan balances increased $45.1 million, or 1.5 percent as of September 30, 2026, compared to June 30, 2026. • No credit loss expense on loans was recorded in either the third or second quarter of 2026. • The allowance for credit losses to total loans was 1.02 percent as of September 30, 2026, compared to 1.03 percent as of June 30, 2026. There were no nonaccrual loans at September 30, 2026 or June 30, 2026. Substandard loans decreased to $13.8 million as of September 30, 2026, from $14.4 million as of June 30, 2026. The substandard loan balances consisted of commercial and commercial real estate loans to two borrowers. In both instances, the Company believes the loans are sufficiently collateralized. Watch list loans decreased from $7.1 million as of June 30, 2026 to $6.7 million as of September 30, 2026. The decreases in substandard and and watch list loans was primarily due to principal payments. • Deposits, excluding brokered deposits, decreased $65.8 million, or 2.0 percent, in the third quarter of 2026. Brokered deposits were reduced by $8.5 million. As of September 30, 2026, estimated uninsured deposits, which exclude deposits in a reciprocal deposit network, brokered deposits and public funds protected by state programs, accounted for approximately 28.5 percent of total deposits.
Page 2
• Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.69 percent for the second quarter of 2026. Net interest income for the third quarter of 2026 was $26.4 million, compared to $25.5 million for the second quarter of 2026. Loan yields increased 8 basis points, to 5.73 percent, in the third quarter of 2026 compared to the second quarter of 2026, while the average balance of loans declined $44.1 million. The cost of interest-bearing deposits increased 3 basis points, to 2.76 percent. The average balance of interest-bearing deposits decreased $36.4 million in the third quarter of 2026 compared to the prior quarter. The comparison of asset yields and cost of interest- bearing deposits is impacted by the 25 basis point increase in the federal funds target rate in September 2026. The average balance of FHLB advances declined $32.1 million in the third quarter of 2026 compared to the prior quarter as matured advances were not renewed. • The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 48.78 percent for the second quarter of 2026, primarily due to the increase in tax-equivalent net interest income. • The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.97 percent as of June 30, 2026. Third Quarter 2026 Compared to Third Quarter 2025 Overview • Quarterly net income was $11.6 million, an increase of $2.3 million, or 24.8 percent, compared to prior year. • Quarterly return on average equity increased to 16.41 percent, compared to 15.25 percent in prior year. • Loan balances were down slightly by $13.7 million at September 30, 2026, or 0.5 percent, compared to September 30, 2025. Changes in the loan portfolio included decreases of $159.0 million in construction, land and land development loans and $52.9 million in commercial loans and an increase of $156.3 million in commercial real estate loans. The change in loan mix included reclassifications resulting from completed construction projects moving to permanent financing and commercial loan restructurings that added real estate as collateral. • Deposits, excluding brokered deposits, increased $67.0 million, or 2.2 percent, as of September 30, 2026, compared to September 30, 2025. Brokered deposits were reduced by $102.9 million. • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.77 percent for the third quarter of 2026, compared to 2.36 percent for the third quarter of 2025. Net interest income for the third quarter of 2026 was $26.4 million, compared to $22.5 million for the third quarter of 2025. Loan yields increased by 7 basis points in the 3rd quarter of 2026, compared to the third quarter of 2025, while the average balance of loans declined $19.6 million. The cost of interest-bearing deposits decreased by 41 basis points in the third quarter of 2026 compared to the third quarter of 2025. The average balance of interest-bearing deposits declined $41.3 million in the third quarter of 2026 compared to the third quarter of 2025. The comparison of asset yields and cost of interest-bearing deposits is impacted by the 75 basis point decrease in the federal funds target rate in the third and fourth quarters of 2025 and subsequent 25 basis point increase in the federal funds target rate in September 2026. • The efficiency ratio (a non-GAAP measure) was 47.81 percent for the third quarter of 2026, compared to 54.06 percent for the third quarter of 2025. The improvement in the efficiency ratio in the third quarter of 2026 compared to the third quarter of 2025 was primarily due to the increase in tax-equivalent net interest income. • The tangible common equity ratio was 6.98 percent as of September 30, 2026, compared to 6.40 percent as of September 30, 2025. The increase in the tangible common equity ratio was due to growth in retained earnings. The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com. The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, October 29, 2026. The telephone number for the conference call is 833-461-5787. The meeting ID for the conference call is 761930850. A recording of the call will be available until November 12, 2026, by dialing 833-309-1852. The meeting ID for the replay call is 761930850.
Page 3
About West Bancorporation, Inc. (Nasdaq: WTBA) West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud. Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “forecasts,” “plans,” “targets,” “future,” “confident,” “potentially,” “probably,” “outlook,” “may,” “should,” “would,” “could,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, as well as the negative of such words, or references to estimates, predictions or future events. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Such forward-looking statements are based upon certain underlying assumptions, known and unknown, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results may differ, possibly materially, from these forward-looking statements. Risks and uncertainties that may affect future results include, but are not limited to: interest rate risk, including the effects of the recent increase in the benchmark federal funds rate by the Federal Reserve; fluctuations in the values of the securities held in our investment portfolio, including as a result of rising interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the threat or imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; effects on the U.S. economy resulting from actions taken by the federal government, including executive orders and immigration enforcement; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; the effects of acts of war or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; widespread disease, pandemics or epidemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their business; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies; talent and labor shortages; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission (the “SEC”). The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that the Company makes in this report or the documents the Company files with or furnishes to the SEC are based only on information then actually known to the Company and upon management’s beliefs and assumptions at the time they are made, which may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that the Company cannot foresee. Forward-looking statements speak only as of the date they are made, and the Company does not undertake and specifically disclaims any obligation to revise or update such forward- looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Page 4
WEST BANCORPORATION, INC. AND SUBSIDIARY Financial Information(unaudited) As of and for the Quarter Ended For the Nine Months Ended KEY PERFORMANCE RATIOSAND OTHER METRICS September 30,2026 June 30, 2026 March 31, 2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Return on average assets 1.16 % 1.10 % 1.06 % 0.72 % 0.92 % 1.11 % 0.84 % Return on average equity 16.41 16.21 15.91 11.33 15.25 16.18 14.27 Net interest margin 2.77 2.69 2.59 2.47 2.36 2.68 2.30 Yield on interest-earning assets 5.16 5.10 5.04 5.02 5.13 5.10 5.08 Cost of interest-bearing liabilities 2.90 2.88 2.90 3.02 3.26 2.89 3.27 Efficiency ratio 47.81 48.78 49.85 50.21 54.06 48.79 55.60 Nonperforming assets to total assets 0.00 0.00 0.00 0.00 0.00 ACL ratio 1.02 1.03 1.02 1.02 1.01 Loans/total assets 76.96 73.21 74.59 72.47 75.50 Loans/total deposits 91.58 88.20 89.71 86.54 91.00 Tangible common equity ratio 6.98 6.97 6.75 6.42 6.40 COMMON SHARE DATA Earnings per common share (basic) $ 0.68 $ 0.65 $ 0.62 $ 0.44 $ 0.55 $ 1.96 $ 1.49 Earnings per common share (diluted) 0.67 0.64 0.61 0.43 0.55 1.93 1.48 Dividends per common share 0.26 0.25 0.25 0.25 0.25 0.76 0.75 Book value per common share 15.94 16.49 15.90 15.70 15.06 Closing stock price 28.51 26.53 23.79 22.19 20.32 Market price/book value 178.86 % 160.89 % 149.62 % 141.34 % 134.93 % Price earnings ratio 10.57 10.18 9.40 12.71 9.31 Annualized dividend yield 3.65 % 3.77 % 4.20 % 4.51 % 4.92 % REGULATORY CAPITAL RATIOS Consolidated: Total risk-based capital ratio 13.43 % 13.46 % 12.99 % 12.77 % 12.54 % Tier 1 risk-based capital ratio 10.78 10.77 10.34 10.14 9.93 Tier 1 leverage capital ratio 9.18 8.91 8.74 8.44 8.51 Common equity tier 1 ratio 10.21 10.18 9.77 9.56 9.37 West Bank: Total risk-based capital ratio 13.87 % 13.97 % 13.53 % 13.35 % 13.17 % Tier 1 risk-based capital ratio 12.95 13.03 12.61 12.44 12.26 Tier 1 leverage capital ratio 11.03 10.79 10.66 10.35 10.50 Common equity tier 1 ratio 12.95 13.03 12.61 12.44 12.26 (1) Annualized net income divided by average assets. (2) Annualized net income divided by average stockholders’ equity. (3) Annualized tax-equivalent net interest income divided by average interest-earning assets. (4) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets. (5) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income. (6) Total nonperforming assets divided by total assets. (7) Allowance for credit losses on loans divided by total loans. (8) Common equity less intangible assets (none held) divided by tangible assets. (9) Includes accumulated other comprehensive loss. (10) Closing stock price divided by book value per common share. (11) Closing stock price divided by annualized earnings per common share (basic). (12) Annualized dividend divided by period end closing stock price. (13) A non-GAAP measure. (1) (2) (3)(13) (4)(13) (5)(13) (6) (7) (8) (9) (10) (11) (12)
Page 5
WEST BANCORPORATION, INC. AND SUBSIDIARY Financial Information (unaudited) (in thousands) As of CONDENSED BALANCE SHEETS September 30,2026 June 30, 2026 March 31,2026 December 31,2025 September 30,2025 Assets Cash and due from banks $ 23,155 $ 30,986 $ 40,018 $ 25,171 $ 26,875 Interest-earning deposits with banks 88,822 260,633 180,218 324,502 109,265 Securities purchased under agreements to resell 160,444 142,080 141,742 121,413 96,792 Securities available for sale, at fair value 415,648 446,575 456,410 468,447 537,856 Federal Home Loan Bank stock, at cost 12,426 15,168 15,180 15,167 15,190 Loans 2,995,211 2,950,114 2,991,638 3,001,690 3,008,888 Allowance for credit losses (30,536) (30,530) (30,523) (30,525) (30,515) Loans, net 2,964,675 2,919,584 2,961,115 2,971,165 2,978,373 Premises and equipment, net 105,510 106,626 107,619 108,380 109,212 Bank-owned life insurance 47,066 46,751 46,500 46,192 45,875 Other assets 73,930 61,261 62,171 61,807 66,042 Total assets $ 3,891,676 $ 4,029,664 $ 4,010,973 $ 4,142,244 $ 3,985,480 Liabilities and Stockholders’ Equity Deposits $ 3,270,646 $ 3,344,900 $ 3,334,972 $ 3,468,470 $ 3,306,517 Borrowings 312,852 374,037 375,221 376,406 389,076 Other liabilities 36,488 29,685 30,037 31,383 34,754 Stockholders’ equity 271,690 281,042 270,743 265,985 255,133 Total liabilities and stockholders’ equity $ 3,891,676 $ 4,029,664 $ 4,010,973 $ 4,142,244 $ 3,985,480 For the Quarter Ended AVERAGE BALANCES September 30,2026 June 30, 2026 March 31,2026 December 31,2025 September 30,2025 Assets $ 3,993,933 $ 4,029,324 $ 4,027,218 $ 4,104,279 $ 4,004,769 Loans 2,940,392 2,984,527 2,971,497 2,982,754 2,959,962 Deposits 3,335,242 3,347,452 3,348,255 3,418,539 3,333,800 Stockholders’ equity 281,208 273,967 269,453 259,932 242,245
Page 6
WEST BANCORPORATION, INC. AND SUBSIDIARY Financial Information (unaudited) (in thousands) As of LOANS September 30,2026 June 30, 2026 March 31,2026 December 31,2025 September 30,2025 Commercial $ 458,416 $ 463,248 $ 471,423 $ 505,059 $ 511,316 Real estate: Construction, land and land development 289,616 333,753 376,059 426,833 448,660 1-4 family residential first mortgages 133,880 130,951 139,118 93,122 87,784 Home equity 26,331 25,999 27,084 26,088 27,083 Commercial 2,068,526 1,977,477 1,958,189 1,929,766 1,912,235 Consumer and other 20,984 21,347 22,257 23,374 24,697 2,997,753 2,952,775 2,994,130 3,004,242 3,011,775 Net unamortized fees and costs (2,542) (2,661) (2,492) (2,552) (2,887) Total loans $ 2,995,211 $ 2,950,114 $ 2,991,638 $ 3,001,690 $ 3,008,888 Less: allowance for credit losses (30,536) (30,530) (30,523) (30,525) (30,515) Net loans $ 2,964,675 $ 2,919,584 $ 2,961,115 $ 2,971,165 $ 2,978,373 CREDIT QUALITY Pass $ 2,977,301 $ 2,931,300 $ 2,952,824 $ 2,952,015 $ 2,973,103 Watch 6,697 7,112 41,306 52,227 38,672 Substandard 13,755 14,363 — — — Doubtful — — — — — Total loans $ 2,997,753 $ 2,952,775 $ 2,994,130 $ 3,004,242 $ 3,011,775 DEPOSITS Noninterest-bearing demand $ 551,615 $ 553,660 $ 511,013 $ 540,358 $ 512,869 Interest-bearing demand 436,697 506,574 489,990 577,814 448,731 Savings and money market - non-brokered 1,677,699 1,705,057 1,731,835 1,739,790 1,677,543 Money market - brokered 101,979 100,450 86,304 99,718 121,849 Total nonmaturity deposits 2,767,990 2,865,741 2,819,142 2,957,680 2,760,992 Time - non-brokered 502,656 469,159 485,658 455,944 462,542 Time - brokered — 10,000 30,172 54,846 82,983 Total time deposits 502,656 479,159 515,830 510,790 545,525 Total deposits $ 3,270,646 $ 3,344,900 $ 3,334,972 $ 3,468,470 $ 3,306,517 BORROWINGS Subordinated notes, net $ 80,352 $ 80,287 $ 80,221 $ 80,156 $ 80,090 Federal Home Loan Bank advances 210,000 270,000 270,000 270,000 270,000 Long-term debt 22,500 23,750 25,000 26,250 38,986 Total borrowings $ 312,852 $ 374,037 $ 375,221 $ 376,406 $ 389,076 STOCKHOLDERS’ EQUITY Preferred stock $ — $ — $ — $ — $ — Common stock 3,000 3,000 3,000 3,000 3,000 Additional paid-in capital 38,068 37,312 36,553 37,231 36,473 Retained earnings 314,605 307,408 300,596 294,259 291,069 Accumulated other comprehensive loss (83,983) (66,678) (69,406) (68,505) (75,409) Total stockholders’ equity $ 271,690 $ 281,042 $ 270,743 $ 265,985 $ 255,133
Page 7
WEST BANCORPORATION, INC. AND SUBSIDIARY Financial Information (unaudited) (in thousands) For the Quarter Ended CONSOLIDATED STATEMENTS OFINCOME September 30,2026 June 30, 2026 March 31,2026 December 31,2025 September 30,2025 Interest income: Loans, including fees $ 42,463 $ 42,031 $ 40,946 $ 41,992 $ 42,198 Securities: Taxable 2,105 2,097 2,143 2,355 2,643 Tax-exempt 634 636 638 677 739 Deposits with banks 2,224 2,130 2,047 2,808 2,087 Securities purchased under agreements to resell 1,769 1,580 1,617 1,370 1,258 Total interest income 49,195 48,474 47,391 49,202 48,925 Interest expense: Deposits 19,376 19,184 19,261 21,112 22,539 Subordinated notes 1,113 1,110 1,104 1,109 1,107 Federal Home Loan Bank advances 1,965 2,274 2,244 2,316 2,292 Long-term debt 371 385 397 459 486 Total interest expense 22,825 22,953 23,006 24,996 26,424 Net interest income 26,370 25,521 24,385 24,206 22,501 Credit loss expense — — — — — Net interest income after credit loss expense 26,370 25,521 24,385 24,206 22,501 Noninterest income: Service charges on deposit accounts 482 476 508 493 491 Debit card interchange income 504 514 472 493 477 Trust services 1,190 1,048 1,010 964 894 Increase in cash value of bank-owned life insurance 316 313 308 317 308 Realized securities losses, net — — — (3,959) — Other income 253 245 256 800 333 Total noninterest income (loss) 2,745 2,596 2,554 (892) 2,503 Noninterest expense: Salaries and employee benefits 7,956 7,987 7,632 7,579 7,457 Occupancy and equipment 2,025 2,006 2,006 2,083 2,090 Technology and software 790 822 774 789 794 Data processing 578 545 596 673 663 FDIC insurance 455 444 473 475 637 Professional fees 260 298 278 297 303 Other expenses 1,897 1,665 1,706 1,833 1,606 Total noninterest expense 13,961 13,767 13,465 13,729 13,550 Income before income taxes 15,154 14,350 13,474 9,585 11,454 Income taxes 3,526 3,277 2,902 2,160 2,140 Net income $ 11,628 $ 11,073 $ 10,572 $ 7,425 $ 9,314 Basic earnings per common share $ 0.68 $ 0.65 $ 0.62 $ 0.44 $ 0.55 Diluted earnings per common share $ 0.67 $ 0.64 $ 0.61 $ 0.43 $ 0.55
Page 8
WEST BANCORPORATION, INC. AND SUBSIDIARY Financial Information (unaudited) (in thousands) For the Nine Months Ended CONSOLIDATED STATEMENTS OF INCOME September 30, 2026 September 30, 2025 Interest income: Loans, including fees $ 125,440 $ 124,852 Securities: Taxable 6,345 8,116 Tax-exempt 1,908 2,224 Deposits with banks 6,401 6,551 Securities purchased under agreements to resell 4,966 1,280 Total interest income 145,060 143,023 Interest expense: Deposits 57,821 66,638 Subordinated notes 3,327 3,316 Federal Home Loan Bank advances 6,483 6,786 Long-term debt 1,153 1,508 Total interest expense 68,784 78,248 Net interest income 76,276 64,775 Credit loss expense — — Net interest income after credit loss expense 76,276 64,775 Noninterest income: Service charges on deposit accounts 1,466 1,448 Debit card interchange income 1,490 1,401 Trust services 3,248 2,472 Increase in cash value of bank-owned life insurance 937 885 Other income 754 950 Total noninterest income 7,895 7,156 Noninterest expense: Salaries and employee benefits 23,575 21,804 Occupancy and equipment 6,037 6,087 Technology and software 2,386 2,371 Data processing 1,719 1,923 FDIC insurance 1,372 1,894 Professional fees 836 914 Other expenses 5,268 5,105 Total noninterest expense 41,193 40,098 Income before income taxes 42,978 31,833 Income taxes 9,705 6,698 Net income $ 33,273 $ 25,135 Basic earnings per common share $ 1.96 $ 1.49 Diluted earnings per common share $ 1.93 $ 1.48
Page 9
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 and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. 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 a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis. (in thousands) For the Quarter Ended For the Nine Months Ended September 30,2026 June 30, 2026 March 31,2026 December 31,2025 September 30,2025 September 30,2026 September 30,2025 Reconciliation of net interest income and net interest margin on a FTE basis to GAAP: Net interest income (GAAP) $ 26,370 $ 25,521 $ 24,385 $ 24,206 $ 22,501 $ 76,276 $ 64,775 Tax-equivalent adjustment 76 75 72 70 61 223 186 Net interest income on a FTE basis (non-GAAP) 26,446 25,596 24,457 24,276 22,562 76,499 64,961 Average interest-earning assets 3,785,334 3,820,041 3,821,463 3,893,827 3,790,154 3,808,813 3,769,158 Net interest margin on a FTE basis (non-GAAP) 2.77 % 2.69 % 2.59 % 2.47 % 2.36 % 2.68 % 2.30 % Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP: Net interest income on a FTE basis (non-GAAP) $ 26,446 $ 25,596 $ 24,457 $ 24,276 $ 22,562 $ 76,499 $ 64,961 Noninterest income 2,745 2,596 2,554 (892) 2,503 7,895 7,156 Adjustment for realized securities losses, net — — — 3,959 — — — Adjustment for losses on disposal of premises and equipment, net 7 28 2 — — 37 8 Adjusted income 29,198 28,220 27,013 27,343 25,065 84,431 72,125 Noninterest expense 13,961 13,767 13,465 13,729 13,550 41,193 40,098 Efficiency ratio on an adjusted and FTE basis (non-GAAP) 47.81 % 48.78 % 49.85 % 50.21 % 54.06 % 48.79 % 55.60 % (1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources. (2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company's financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable. (1) (2)