Second Quarter Report June 30, 2026

Dear Shareholders:

Net income totaled $627,000, or $1.25 per share, for the quarter ended June 30, 2026 compared with $505,000, or $0.98 per share, for the second quarter of 2025. Greater net income between periods was primarily due to a $240,000 increase in net interest income attributed to higher yields in the loan portfolio as well as lower cost of funds resulting from increased deposits. Noninterest income was unchanged, and noninterest expense increased $100,000; both period over period.

Banking projects and technology infrastructure enhancements continue at a rapid pace in 2026. Notable projects include remote deposit capture for business customers and use of more cloud-based vendor services.

For the six-month period ending June 30, 2026, net income totaled $1,193,000 compared with $965,000 for the first six months of 2025. Annualized return on average assets was 1.13% and return on equity was 9.56% in 2026.

A dividend of $0.58 per share was paid July 1, which approximates a 4.3% current yield, and the recent trading price of the company stock exceeded $53 per share. Your ongoing support and loyalty are deeply appreciated.

Sincerely,

Nelson L. Person
President & CEO