NASDAQ: COFS

The Company's business is primarily concentrated in a single industry segment, banking. ChoiceOne Bank (referred to as the “Bank”) is a full-service banking institution that offers a variety of deposit, payment, credit and other financial services to all types of customers. These services include time, savings, and demand deposits, safe deposit services, and automated transaction machine services. Loans, both commercial and consumer, are extended primarily on a secured basis to commercial enterprises and individuals. Commercial lending covers such categories as business, industry, agricultural, construction, inventory, and real estate. The Bank’s consumer loan departments make direct and indirect loans to consumers and purchasers of residential and real property. In addition, the Bank offers trust and wealth management services. No material part of the business of the Company or the Bank is dependent upon a single customer or very few customers, the loss of which would have a materially adverse effect on the Company.

The Bank’s primary market areas lie within western, central, and southeastern Michigan, in the communities where the Bank’s respective offices are located. The Bank serves these markets through 47 full-service offices, one drive up office, five loan production offices and a wealth management office. The Company and the Bank have no foreign assets or income.

At December 31, 2025, the Company had consolidated total assets of $4.4 billion, net loans of $3.0 billion, total deposits excluding brokered deposits of $3.5 billion and total shareholders' equity of $465.4 million. For the year ended December 31, 2025, the Company recognized consolidated net income of $28.2 million. The principal source of revenue for the Company and the Bank is interest and fees on loans. On a consolidated basis, interest and fees on loans accounted for 76%, 64%, and 60% of total revenues in 2025, 2024, and 2023, respectively. Interest on securities accounted for 12%, 19%, and 24% of total revenues in 2025, 2024, and 2023, respectively. For more information about the Company's financial condition and results of operations, see the consolidated financial statements and related notes included in Item 8 of this report.

Competition

There are a number of larger commercial banks and credit unions within the Bank’s primary market areas. The Bank also competes with a large number of other financial institutions, such as savings and loan associations, insurance companies, consumer finance companies, internet banks and other financial technology companies, and commercial finance and leasing companies for deposits, loans and service business. Money market mutual funds, brokerage houses and nonfinancial institutions provide many of the financial services offered by the Bank. Many of these competitors have substantially greater resources than the Bank. The principal methods of competition for financial services are price (the rates of interest charged for loans, the rates of interest paid for deposits and the fees charged for services) and the convenience and quality of services rendered to customers.

Supervision and Regulation

Banks and bank holding companies are extensively regulated. The Company is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Company's activities are generally limited to owning or controlling banks and engaging in such other activities as the Federal Reserve Board may determine to be closely related to banking. Prior approval of the Federal Reserve Board, and in some cases various other government agencies, is required for the Company to

3

acquire control of any additional bank holding companies, banks or other operating subsidiaries. Under Federal Reserve Board policy, the Company is expected to act as a source of financial strength to the Bank and to commit resources to support it.

The Bank is chartered under state law and is subject to regulation by the Michigan Department of Insurance and Financial Services (“DIFS”). State banking laws place restrictions on various aspects of banking, including permitted activities, loan interest rates, branching, payment of dividends and capital and surplus requirements. The Bank is a member of the Federal Reserve System and is also subject to regulation by the Federal Reserve Board. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”) to the maximum extent provided by law. The Bank is a member of the Federal Home Loan Bank system, which provides certain advantages to the Bank, including favorable borrowing rates for certain funds.

The Company is a legal entity separate and distinct from the Bank. The Company's primary source of funds available to pay dividends to shareholders is dividends paid to it by the Bank. There are legal limitations on the extent to which the Bank can lend or otherwise supply funds to the Company. In addition, payment of dividends to the Company by the Bank is subject to various state and federal regulatory limitations.

As an FDIC-insured institution, the Bank is required to pay deposit insurance premium assessments to the FDIC. The FDIC has adopted a risk-based assessment system under which all insured depository institutions are placed into one of four categories and assessed insurance premiums, based upon their respective levels of capital and results of supervisory evaluation. Institutions categorized as well-capitalized (as defined by the FDIC) and considered healthy pay the lowest premium, while institutions that are categorized as less than adequately capitalized (as defined by the FDIC) and considered of substantial supervisory concern pay the highest premium. Risk classification of all insured institutions is made by the FDIC for each semi-annual assessment period.

The federal banking agencies have adopted guidelines to promote the safety and soundness of federally-insured depository institutions. These guidelines establish standards for, among other things, internal controls, information systems, internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, compensation, fees and benefits, asset quality and earnings.

The Company and the Bank are subject to regulatory “risk-based” capital guidelines. Failure to meet these capital guidelines could subject the Company or the Bank to a variety of enforcement remedies, including issuance of a capital directive, the termination of deposit insurance by the FDIC, a prohibition on accepting brokered deposits, and other restrictions on its business. In addition, the Bank would generally not receive regulatory approval of any application that requires the consideration of capital adequacy, such as a branch or merger application, unless it could demonstrate a reasonable plan to meet the capital requirement within a reasonable period of time.

Under Federal Reserve Board policy, the Company is expected to act as a source of financial strength to the Bank and to commit resources to support the Bank. In addition, if DIFS deems the Bank's capital to be impaired, DIFS may require the Bank to restore its capital by a special assessment on the Company as the Bank's sole shareholder. If the Company fails to pay any assessment, the Company’s directors will be required, under Michigan law, to sell the shares of the Bank's stock owned by the Company to the highest bidder at either a public or private auction and use the proceeds of the sale to restore the Bank's capital.

The Federal Deposit Insurance Corporation Improvement Act (“FDICIA”) requires, among other things, federal banking agencies to take “prompt corrective action” in respect of depository institutions that do not meet minimum capital requirements. FDICIA sets forth the following five capital categories: “well-capitalized,” “adequately-capitalized,” “undercapitalized,” “significantly-undercapitalized” and “critically-undercapitalized.” A depository institution's capital category will depend upon how its capital levels compare with various relevant capital measures as established by regulation, which include a common equity Tier I risk-based capital ratio, a Tier 1 risk-based capital ratio, a total risk-based capital ratio and a leverage capital ratio. In addition, a capital conservation buffer is required. Under certain circumstances, the appropriate banking agency may treat a well-capitalized, adequately-capitalized, or undercapitalized institution as if the institution were in the next lower capital category.

Federal banking regulators are required to take specified mandatory supervisory actions and are authorized to take other discretionary actions with respect to institutions in the three undercapitalized categories. The severity of the action depends upon the capital category in which the institution is placed. Subject to a narrow exception, the banking regulator must generally appoint a receiver or conservator for an institution that is critically undercapitalized. An institution in any of the undercapitalized categories is required to submit an acceptable capital restoration plan to its appropriate federal banking agency. An undercapitalized institution is also generally prohibited from paying any dividends, increasing its average total assets, making acquisitions, establishing any branches, accepting or renewing any brokered deposits or engaging in any new line of business, except under an accepted capital restoration plan or with FDIC approval.

Banks are subject to a number of federal and state laws and regulations, which have a material impact on their business. These include, among others, minimum capital requirements, state usury laws, state laws relating to fiduciaries, the Truth in Lending Act, the Truth in Savings Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, the Expedited Funds Availability Act, the Community Reinvestment Act, the Real Estate Settlement Procedures Act, the Service Members Civil Relief Act, the USA PATRIOT Act, the Bank Secrecy Act, regulations of the Office of Foreign Assets Controls, the Dodd-Frank Wall Street Reform and

4

Consumer Protection Act of 2010, electronic funds transfer laws, redlining laws, predatory lending laws, antitrust laws, environmental laws, money laundering laws and privacy laws. The monetary policy of the Federal Reserve Board may influence the growth and distribution of bank loans, investments and deposits, and may also affect interest rates on loans and deposits. These policies may have a significant effect on the operating results of banks.

In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the Federal Reserve Board has determined to be closely related to the business of banking. In addition, bank holding companies that qualify and elect to be financial holding companies may engage in any activities that are financial in nature or complementary to a financial activity and do not pose a substantial risk to the safety and soundness of depository institutions or the financial system without prior approval of the Federal Reserve Board. Activities that are financial in nature include securities underwriting and dealing, insurance underwriting and making merchant banking investments. The Company has elected to be a financial holding company.

In order for the Company to maintain financial holding company status, the Bank must be categorized as "well-capitalized" and "well-managed" under applicable regulatory guidelines. If the Company or the Bank ceases to meet these requirements, the Federal Reserve Board may impose corrective capital and/or managerial requirements and place limitations on the Company’s ability to conduct the broader financial activities permissible for financial holding companies. In addition, if the deficiencies persist, the Federal Reserve Board may require the Company to divest of the Bank. The Bank was categorized as "well-capitalized" and "well-managed" as of December 31, 2025.

Bank holding companies may acquire banks and other bank holding companies located in any state in the United States without regard to geographic restrictions or reciprocity requirements imposed by state banking law. Banks may also establish interstate branch networks through acquisitions of and mergers with other banks. The establishment of de novo interstate branches or the acquisition of individual branches of a bank in another state (rather than the acquisition of an out-of-state bank in its entirety) is allowed only if specifically authorized by state law.

Michigan banking laws do not significantly restrict interstate banking. The Michigan Banking Code permits, in appropriate circumstances and with the approval of DIFS, (1) acquisition of Michigan banks by FDIC-insured banks, savings banks or savings and loan associations located in other states, (2) sale by a Michigan bank of branches to an FDIC-insured bank, savings bank or savings and loan association located in a state in which a Michigan bank could purchase branches of the purchasing entity, (3) consolidation of Michigan banks and FDIC-insured banks, savings banks or savings and loan associations located in other states having laws permitting such consolidation, (4) establishment of branches in Michigan by FDIC-insured banks located in other states, the District of Columbia or U.S. territories or protectorates having laws permitting a Michigan bank to establish a branch in such jurisdiction, and (5) establishment by foreign banks of branches located in Michigan.

Banks are subject to the provisions of the Community Reinvestment Act ("CRA"). Under the terms of the CRA, the appropriate federal bank regulatory agency is required, in connection with its examination of a bank, to assess the bank's record in meeting the credit needs of the community served by that bank, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution. Under the CRA, institutions are assigned a rating of "outstanding," "satisfactory," "needs to improve," or "substantial non-compliance." The regulatory agency's assessment of the bank's record is made available to the public. Further, a bank's federal regulatory agency is required to assess the CRA compliance record of any bank that has applied to establish a new branch office that will accept deposits, relocate an office, or merge or consolidate with, or acquire the assets or assume the liabilities of, a federally regulated financial institution. In the case of a bank holding company applying for approval to acquire a bank or another bank holding company, the Federal Reserve Board will assess the CRA compliance record of each subsidiary bank of the applicant bank holding company, and such compliance records may be the basis for denying the application. Upon receiving notice that a subsidiary bank is rated less than "satisfactory," a financial holding company will be prohibited from additional activities that are permitted to be conducted by a financial holding company and from acquiring any company engaged in such activities. The CRA rating of the Bank was "Satisfactory" as of its most recent examination.

Effects of Compliance With Environmental Regulations

The nature of the business of the Bank is such that it holds title, on a temporary or permanent basis, to a number of parcels of real property. These include properties owned for branch offices and other business purposes as well as properties taken in or in lieu of foreclosure to satisfy loans in default. Under current state and federal laws, present and past owners of real property may be exposed to liability for the cost of cleanup of environmental contamination on or originating from those properties, even if they are wholly innocent of the actions that caused the contamination. These liabilities can be material and can exceed the value of the contaminated property. Management is not presently aware of any instances where compliance with these provisions will have a material effect on the capital expenditures, earnings or competitive position of the Company or the Bank, or where compliance with these provisions will adversely affect a borrower's ability to comply with the terms of loan contracts.

5

Employees

As of February 28, 2026, the Company, on a consolidated basis, employed 598 employees, of which 505 were full-time employees. Our employees are not represented by any collective bargaining group. Management considers its employee relations to be good.

Available Information

Our internet address is www.choiceone.bank. We make available free of charge through this website our annual report on Form 10-K, our quarterly reports on Form 10-Q and our current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after filing or furnishing such reports with the Securities and Exchange Commission. The information on our website address is not incorporated by reference into this report, and the information on the website is not part of this report.

Statistical Information

Additional statistical information describing the business of the Company appears on the following pages and in Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this report and in the Consolidated Financial Statements and the notes thereto in Item 8 of this report. The following statistical information should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes in this report. Average balances used in statistical information are calculated using daily averages, unless otherwise specified.

The Company did not hold investment securities from any one issuer at December 31, 2025, that were greater than 10% of the Company's shareholders' equity, exclusive of U.S. Government and U.S. Government agency securities.

Presented below is the fair value of securities available for sale and amortized cost for held to maturity securities as of December 31, 2025, a schedule of maturities of securities as of December 31, 2025, and the weighted average yields of securities as of December 31, 2025. Certain municipal securities are callable at the issuer’s option prior to stated maturity. While contractual maturities extend past 10 years, the effective duration of these securities may be shorter due to call provisions, particularly in a declining or stable rate environment.

Available for Sale Securities maturing within:

Fair Value

Less than

1 Year -

5 Years -

More than

at December 31,

(Dollars in thousands)

1 Year

5 Years

10 Years

10 Years

2025

U.S. Government and federal agency

$

-

$

-

$

-

$

-

$

-

U.S. Treasury notes and bonds

986

88,049

-

-

89,035

State and municipal

-

34,898

26,006

166,670

227,574

Corporate

-

-

222

-

222

Asset-backed securities

-

8,202

2,333

-

10,535

Total debt securities

986

131,149

28,561

166,670

327,366

Mortgage-backed securities

962

132,286

84,742

9,064

227,054

Total Available for Sale

$

1,948

$

263,435

$

113,303

$

175,734

$

554,420

Available for Sale weighted average yields:

Less than

1 Year -

5 Years -

More than

1 Year

5 Years

10 Years

10 Years

Total

U.S. Government and federal agency

-

%

-

%

-

%

-

%

-

%

U.S. Treasury notes and bonds

4.01

1.29

-

-

1.32

State and municipal

-

2.54

2.32

2.53

2.51

Corporate

-

-

3.75

-

3.75

Asset-backed securities

-

5.00

4.90

-

4.98

Mortgage-backed securities

2.86

3.62

3.10

3.16

3.40

Security yields are shown before the impact of interest rate swaps. ChoiceOne holds pay fixed, receive variable swaps with a notional value of $230.4 million which effect the interest earned on securities. Further details can be found in Note 8 - Derivatives and Hedging Activities.

6

Held to Maturity Securities maturing within:

Amortized Cost

Less than

1 Year -

5 Years -

More than

at December 31,

(Dollars in thousands)

1 Year

5 Years

10 Years

10 Years

2025

U.S. Government and federal agency

$

-

$

2,984

$

-

$

-

$

2,984

U.S. Treasury notes and bonds

-

-

-

-

-

State and municipal

2,142

53,150

88,379

52,777

196,448

Corporate

-

-

20,941

-

20,941

Asset-backed securities

-

-

-

-

-

Total debt securities

2,142

56,134

109,320

52,777

220,373

Mortgage-backed securities

1,898

109,670

53,252

-

164,820

Total Held to Maturity

$

4,040

$

165,804

$

162,572

$

52,777

$

385,193

Held to Maturity weighted average yields:

Less than

1 Year -

5 Years -

More than

1 Year

5 Years

10 Years

10 Years

Total

U.S. Government and federal agency

-

%

1.61

%

-

%

-

%

1.61

%

U.S. Treasury notes and bonds

-

-

-

-

-

State and municipal

3.03

2.15

2.24

2.47

2.29

Corporate

-

-

4.24

-

4.24

Asset-backed securities

-

-

-

-

-

Mortgage-backed securities

4.36

2.65

2.26

-

2.55

Weighted average yields are calculated based on the fair value of securities available for sale and amortized cost of securities held to maturity which are denoted in the table above. Weighted average yields for tax-exempt securities is computed on a fully tax-equivalent basis at an incremental tax rate of 21% for 2025.

Maturities and Sensitivities of Loans to Changes in Interest Rates

The following schedule presents the maturities of loans as of December 31, 2025. Loans are also classified according to the sensitivity to changes in interest rates as of December 31, 2025. Maturity dates are different than repricing dates used on call report.

(Dollars in thousands)

In one year

After one year

After five years

After fifteen

or less

through five years

through fifteen years

years

Total

Agricultural

$

17,870

$

11,254

$

23,457

$

3,637

$

56,218

Commercial and industrial

83,189

97,943

153,383

18,041

352,556

Commercial real estate

208,256

714,478

749,651

108,011

1,780,396

Construction real estate

18,004

642

-

493

19,139

Consumer

3,130

10,852

10,734

1,985

26,701

Residential real estate

12,734

3,665

158,760

552,878

728,037

Mortgage warehouse advances

58,987

-

-

-

58,987

Totals

$

402,170

$

838,834

$

1,095,985

$

685,045

$

3,022,034

(Dollars in thousands)

Fixed or

Floating or

predetermined rates

variable rates

Total

Loans maturing after one year:

Agricultural

$

35,202

$

3,146

$

38,348

Commercial and industrial

158,443

110,924

269,367

Commercial real estate

1,085,953

486,187

1,572,140

Construction real estate

1,135

-

1,135

Consumer

23,388

183

23,571

Residential real estate

278,273

437,030

715,303

Mortgage warehouse advances

-

-

-

Totals

$

1,582,394

$

1,037,470

$

2,619,864

7

Loan maturities are classified according to the contractual maturity date or the anticipated amortization period, whichever is appropriate. The anticipated amortization period is used in the case of loans where a balloon payment is due before the end of the loan’s normal amortization period. At the time the balloon payment is due, the loan can either be rewritten or payment in full can be requested. The decision regarding whether the loan will be rewritten or a payment in full will be requested will be based upon the loan’s payment history, the borrower’s current financial condition, and other relevant factors.

The following table reflects the composition of our allowance for credit losses, non-accrual loans, and nonperforming loans as a percentage of total loans represented by each class of loans as of the dates indicated:

(Dollars in thousands)

Agricultural

Commercial and industrial

Consumer

Commercial real estate

Construction real estate

Residential real estate

Mortgage warehouse advances

Totals

Loans

December 31, 2025

$

56,218

$

352,556

$

26,701

$

1,780,396

$

19,139

$

728,037

$

58,987

$

3,022,034

Allowance for credit losses year ended December 31, 2025

$

219

$

6,797

$

693

$

18,416

$

80

$

9,257

$

88

$

35,550

Allowance as a percentage of loan category

0.39

%

1.93

%

2.60

%

1.03

%

0.42

%

1.27

%

0.15

%

1.18

%

Nonaccrual loans year ended December 31, 2025

$

-

$

8,003

$

101

$

8,020

$

-

$

10,934

$

-

$

27,058

Nonaccrual as a percentage of loan category

0.00

%

2.27

%

0.38

%

0.45

%

0.00

%

1.50

%

0.00

%

0.90

%

Allowance as a percentage of nonaccrual loans

NA

84.93

%

686.14

%

229.63

%

NA

84.66

%

NA

131.38

%

Nonperforming loans year ended December 31, 2025

$

-

$

8,003

$

101

$

8,020

$

-

$

10,941

$

-

$

27,065

Nonperforming loans as a percentage of loan category

0.00

%

2.27

%

0.38

%

0.45

%

0.00

%

1.50

%

0.00

%

0.90

%

Net deposit charge-offs during the year ended December 31, 2025

$

-

$

-

$

(223

)

$

-

$

-

$

-

$

-

$

(223

)

Net loan charge-offs during the year ended December 31, 2025

$

-

$

(236

)

$

(117

)

$

(416

)

$

-

$

(47

)

$

-

$

(816

)

Net charge-offs during the year ended December 31, 2025

$

-

$

(236

)

$

(340

)

$

(416

)

$

-

$

(47

)

$

-

$

(1,039

)

Net charge-offs during the year to average loans outstanding

0.00

%

-0.01

%

-0.01

%

-0.02

%

0.00

%

0.00

%

0.00

%

-0.04

%

(Dollars in thousands)

Agricultural

Commercial and industrial

Consumer

Commercial real estate

Construction real estate

Residential real estate

Mortgage warehouse advances

Totals

Loans

December 31, 2024

$

48,221

$

228,256

$

29,412

$

901,130

$

17,042

$

281,701

$

39,878

$

1,545,640

Allowance for loan losses year ended December 31, 2024

$

90

$

2,260

$

733

$

9,460

$

59

$

3,890

$

60

$

16,552

Allowance as a percentage of loan category

0.19

%

0.99

%

2.49

%

1.05

%

0.35

%

1.38

%

0.15

%

1.07

%

Nonaccrual loans year ended December 31, 2024

$

-

$

-

$

8

$

-

$

229

$

3,467

$

-

$

3,704

Nonaccrual as a percentage of loan category

0.00

%

0.00

%

0.03

%

0.00

%

1.34

%

1.23

%

0.00

%

0.24

%

Allowance as a percentage of nonaccrual loans

NA

NA

9162.50

%

NA

25.76

%

112.20

%

NA

446.87

%

Nonperforming loans year ended December 31, 2024

$

-

$

8

$

-

$

229

$

3,467

$

-

$

3,704

Nonperforming loans as a percentage of loan category

0.00

%

0.00

%

0.03

%

0.00

%

1.34

%

1.23

%

0.00

%

0.24

%

Net deposit charge-offs during the year ended December 31, 2024

$

-

$

-

$

(237

)

$

-

$

-

$

-

$

-

$

(237

)

Net loan charge-offs during the year ended December 31, 2024

$

-

$

8

$

(189

)

$

-

$

-

$

(15

)

$

-

$

(196

)

Net charge-offs during the year ended December 31, 2024

$

-

$

8

$

(426

)

$

-

$

-

$

(15

)

$

-

$

(433

)

Net charge-offs during the year to average loans outstanding

0.00

%

0.00

%

-0.03

%

0.00

%

0.00

%

0.00

%

0.00

%

-0.03

%

NA – No non-accrual loans in the loan category.

Additions to the allowance for credit losses charged to operations during the periods shown were based on management’s judgment after considering the factors laid out in Note 1 “Allowance for Credit Losses” to the consolidated financial statements. ChoiceOne adopted the Financial Accounting Standards Board (the "FASB") Account Standards Update 2016-13, Financial Instruments - Credit

8

Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, commonly referred to as "CECL" effective January 1, 2023 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The evaluation of the loan portfolio is based upon various risk factors such as the financial condition of the borrower, the value of collateral, reasonable and supportable forecasts, and other considerations, which, in the opinion of management, deserve current recognition in estimating credit losses.

The following schedule presents an allocation of the allowance for credit losses to the various loan categories as of the years ended December 31:

2025

2024

2023

Agricultural

$

219

$

90

$

94

Commercial and industrial

6,797

2,260

2,216

Commercial real estate

18,416

9,460

8,820

Construction real estate

80

59

58

Residential real estate

9,257

3,890

3,644

Consumer

693

733

823

Mortgage warehouse advances

88

60

30

Unallocated

-

-

-

Total allowance for loan losses

$

35,550

$

16,552

$

15,685

Deposits

The following schedule presents the average deposit balances by category and the average rates paid thereon for the respective years:

(Dollars in thousands)

2025

2024

2023

Average Balance

Average Rate

Average Balance

Average Rate

Average Balance

Average Rate

Noninterest-bearing demand

$

856,661

-

%

$

519,709

-

%

$

546,926

-

%

Interest-bearing demand and money market deposits

1,291,528

1.81

896,060

1.45

852,927

1.18

Savings

554,110

0.77

334,310

0.85

370,074

0.43

Certificates of deposit

681,049

3.82

415,626

4.38

342,043

3.46

Total

$

3,383,348

1.58

%

$

2,165,705

1.57

%

$

2,111,970

1.11

%

Amount of time deposits in uninsured accounts as of December 31, 2025 (Dollars in thousands)

Maturing in less than 3 months

$

116,841

Maturing in 3 to 6 months

82,071

Maturing in 6 to 12 months

111,911

Maturing in more than 12 months

11,139

Total uninsured time deposits

$

321,962

At December 31, 2025, the aggregate balance of all deposits exceeding the FDIC insured limit of $250,000 for individual and $500,000 for joint accounts totaled $1.2 billion, or 33.2% of total deposits, compared to $833.2 million, or 37.6% of total deposits and $769.7 million, or 36.3% of total deposits at December 31, 2024 and 2023, respectively. Certificate of Deposit Account Registry Service ("CDARs") and Insured Cash Sweep ("ICS") deposits are excluded from the above table as these deposits are 100% FDIC insured.

Core deposits, which we define as insured branch deposits less certificates of deposit, totaled $2.0 billion or 55.0% of total deposits at December 31, 2025.

At December 31, 2025, the Bank had no material foreign deposits.

9

Return on Equity and Assets

The following schedule presents certain financial ratios of the Company for the years ended December 31:

2025

2024

2023

Return on assets (net income divided by average total assets)

0.69

%

1.00

%

0.85

%

Return on equity (net income divided by average equity)

7.04

%

11.80

%

12.00

%

Dividend payout ratio (dividends declared per share divided by net income per share)

60.15

%

33.72

%

37.21

%

Equity to assets ratio (average equity divided by average total assets)

9.81

%

8.49

%

7.11

%