Georgia Banking Company Reports 2026 Third-Quarter Earnings

Georgia Banking Company Reports 2026 Third-Quarter Earnings Third Quarter 2026 Results and the First Full Quarter of Combined Operations Following the Tandem Bancorp, Inc. Merger ATLANTA, Ga., October 28, 2026 /ACCESS Newswire/ -- Georgia Banking Company, Inc. (“GBC” or the “Company”), the holding company for Georgia Banking Company (the “Bank”), today reported net income of $6.3 million, or $0.57 per diluted common share, for the third quarter of 2026, compared with net income of $5.6 million, or $0.60 per diluted common share, for the second quarter of 2026. Third-quarter 2026 results included $2.0 million of direct listing expenses and $493 thousand of merger and acquisition expenses, each before taxes. “Our third-quarter results reflect the strength of our core banking franchise, the execution of our growth strategy and the investments we have made in our people and capabilities,” said Bartow Morgan, Jr., Chief Executive Officer of GBC. “We continue to see attractive opportunities across our markets while maintaining a disciplined approach to credit, liquidity and capital. As our shares prepare to begin trading on the Nasdaq Capital Market, our priorities remain clear: deliver exceptional service to our clients, generate sustainable and profitable growth and create long-term value for our shareholders.” 2026 Third Quarter Highlights: · Sequential and year-over-year comparisons are impacted by the merger with Tandem Bancorp, Inc. (“Tandem”), which closed on June 1, 2026 and was fully integrated on September 21, 2026; · Pre-tax, pre-provision earnings were $10.5 million, an increase of $1.8 million, or 20.4%, from the second quarter 2026. Pre-tax, pre-provision operating earnings, which exclude direct listing and merger and acquisition expenses, were $12.9 million, an increase of $750 thousand, or 6.2%, from the prior quarter; · Net interest income increased $2.3 million, or 8.0%, from the prior quarter; · Net interest margin was 4.17% compared with 4.31% in the prior quarter, with the decrease primarily reflecting higher interest expense on other borrowed funds associated with the Company’s subordinated debt refinancing during the quarter; · Average loans increased $158.3 million, or 6.7%, from the prior quarter to $2.5 billion. Loan growth was primarily attributable to an increase in commercial real estate and single-family residential loans from the prior quarter; · Average total interest-bearing deposits increased $268.5 million, or 15.7%, from the prior quarter to $2.0 billion, inclusive of the impact of the Tandem acquisition; · Noninterest-bearing deposits represented 26.0% of period-end total deposits. GBC’s average cost of total deposits nonannualized, including noninterest-bearing deposits, increased 2 basis points from the prior quarter to 0.58%, and decreased 7 basis points from the year-ago quarter; · Provision for credit losses was $2.0 million compared to $1.1 million in the prior quarter and $734 thousand in third quarter 2025. Net charge-offs were 0.16% of average loans outstanding (annualized) for the quarter, while the nonperforming loan ratio was 0.99% of total loans held for investment at quarter end compared to 0.83% in the prior quarter. The allowance for credit losses (“ACL”) was $30.1 million, or 1.36% of total loans held for investment, at quarter end, an increase of $1.1 million from the prior quarter end; · The Company maintained strong regulatory capital ratios at September 30, 2026. The Company’s preliminary Common Equity Tier 1 (“CET1”) ratio was 10.59%, compared to 10.29% at June 30, 2026 and 8.53% at September 30, 2025; and · Named a Top Workplace by Axios for the fourth consecutive year, an honor based entirely on employee feedback gathered through a third-party survey. Results of Operations for the Three Months Ended September 30, 2026 Net Interest Income and Net Interest Margin For the three months ended September 30, 2026, net interest income before provision for credit losses was $31.4 million and net interest margin was 4.17% compared to $29.1 million and 4.31%, respectively, for the three months ended June 30, 2026. The approximately $2.3 million increase, or 8.0%, in net interest income before provision for credit losses was primarily due to a $4.6 million increase in interest income on loans held for investment, including fees, a $1.2 million increase in interest income on deposits with banks and federal funds sold and a $1.2 million decrease in interest expense on FHLB advances. The increase was partially offset by a $2.7 million increase in interest expense on transaction and savings accounts and a $1.6 million decrease in interest income on loans held for sale. Net interest margin decreased 14 basis points compared to the three months ended June 30, 2026 primarily due to an increase in interest expense on other borrowed funds as a result of restructuring our subordinated debt during the three months ended September 30, 2026. Compared to the three months ended September 30, 2025, net interest income before provision for credit losses for the three months ended September 30, 2026 increased by $4.0 million, or 14.8%. The increase was primarily due to a $5.7 million increase in interest income on loans held for investment, including fees, a $2.0 million decrease in interest expense on FHLB advances and a $1.0 million increase in interest-bearing deposits with banks. The increase was partially offset by a $2.5 million increase in interest expense on transaction and savings accounts and a $2.4 million decrease in interest income on loans held for sale. Net interest margin decreased 20 basis points compared to the three months ended September 30, 2025 primarily due to a decrease in loan yields. Noninterest Income Noninterest income was $2.8 million for the three months ended September 30, 2026, a decrease of $451 thousand, or 13.8%, from the three months ended June 30, 2026. The decrease was primarily due to a $342 thousand decrease in mortgage banking activity. Compared with the three months ended September 30, 2025, noninterest income increased $1.0 million, or 57.1%. The increase primarily reflected a $672 thousand increase in gain on sale of loans, a $298 thousand increase in service charges and fees, and a $286 thousand increase in mortgage banking activity, partially offset by decreases in other noninterest income categories. Noninterest Expense Noninterest expense was $23.8 million for the three months ended September 30, 2026, compared to $23.7 million for the three months ended June 30, 2026, an increase of $104 thousand, or 0.4%. Excluding direct listing and merger and acquisition expenses, the change included a $717 thousand increase in salaries and employee benefits, primarily related to employees retained in connection with the Tandem acquisition and hiring associated with the Company’s direct listing on Nasdaq. Compared to the three months ended September 30, 2025, noninterest expense increased $5.3 million, or 29.0%. Excluding direct listing and merger and acquisition expenses, the increase primarily reflected a $1.8 million increase in salaries and employee benefits, primarily related to employees retained in connection with the Tandem acquisition and hiring associated with the Company’s direct listing on Nasdaq, and an $859 thousand increase in communications, data processing and equipment expense. Financial Condition Total loans, net, were $2.56 billion at September 30, 2026, an increase of $1.1 million from June 30, 2026. The change reflected $128.8 million of growth in loans held for investment, largely offset by a $126.5 million decrease in loans held for sale and the effect of related netting items included in total loans, net. Total deposits were $2.70 billion at September 30, 2026, a decrease of $136.2 million from June 30, 2026. The decrease reflected a $171.8 million decline in interest-bearing deposits, partially offset by a $35.6 million increase in noninterest-bearing deposits. Credit Quality Nonperforming assets totaled $22.1 million, or 0.70% of total assets, at September 30, 2026, compared to $17.3 million, or 0.53% of total assets, at June 30, 2026. The Company recorded net charge-offs of $893 thousand for the three months ended September 30, 2026. Annualized net charge-offs to average loans outstanding were 16 basis points for the three months ended September 30, 2026, compared to no net charge-offs for the three months ended June 30, 2026 and 17 basis points for the three months ended September 30, 2025. For the nine months ended September 30, 2026, annualized net charge-offs to average loans outstanding were 13 bps compared to 7 bps for the nine months ended September 30, 2025. The allowance for credit losses as a percentage of loans held for investment was 1.36%, 1.39% and 1.43% at September 30, 2026, June 30, 2026 and September 30, 2025, respectively. The Company recorded a provision for credit losses of $2.0 million, $1.1 million and $734 thousand for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. The recorded provision for credit losses for the three months ended September 30, 2026, compared to the three months ended June 30, 2026, was primarily attributable to an increase in general reserves as a result of changes in economic factors, portfolio mix and specific reserves. The balance for unfunded commitments for the three months ended September 30, 2026 remained relatively stable compared to the three months ended June 30, 2026 and the Company recorded no provision for or benefit from credit losses on unfunded commitments during the third quarter of 2026. Non-GAAP Financial Measures GBC’s management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that it believes is important to investors, because they, among other things, present the results of GBC’s ongoing operations without the effect of mergers and acquisitions or other items not central to GBC’s ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of GBC, and management uses these non-GAAP financial measures to assess the performance of GBC as relative to prior financial period. However, non-GAAP financial measures should be viewed in addition to, and not as an alternative for, GBC’s reported results prepared in accordance with GAAP. Specifically, GBC reviews and reports tangible book value per common share; operating earnings; tangible common equity to tangible assets; return on average tangible common equity; pre-tax, pre-provision operating earnings; pre-tax, pre-provision operating return on average assets; pre-tax, pre-provision operating return on average loans; diluted operating earnings per share; operating return on average assets; operating return on average tangible common equity; and operating efficiency ratio. GBC has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Reconciliation of Non-GAAP Financial Measures” after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures. About Georgia Banking Company, Inc. Georgia Banking Company is a community-focused financial institution headquartered in Atlanta, Georgia, and a wholly owned subsidiary of GBC. Under the leadership of CEO Bartow Morgan, Jr., a fifth-generation Georgia banker, the company has built a reputation as a trusted partner for businesses, professionals, and families in the markets it serves. By combining innovative solutions with a relationship-first approach, Georgia Banking Company remains committed to delivering exceptional service and supporting its communities. Disclaimer and Forward-Looking Statements The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. The prospectus may be accessed through the following link: https://www.sec.gov/Archives/edgar/data/0001070965/000110465926118704/tm2620318-18_s1a.htm. Alternatively, the Company will arrange to send you the prospectus if you request it by calling toll-free (866) 711- 4530 or by emailing InvestorRelations@georgiabanking.com. This earnings release includes “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, to the extent applicable. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and many of which are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company’s listing, future financial performance, business and growth strategy, asset quality, liquidity, capital, net interest margin, expense levels, and plans, objectives and expectations of management, including those contained in the commentary of our Chief Executive Officer. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “forecasts,” “outlooks,” “plans,” “potential” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks, uncertainties and other factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed or implied. These factors include, among others: changes in interest rates, the shape of the yield curve and monetary policy, and their effects on our net interest margin, deposit costs, loan demand and the value of our securities portfolio; competition for deposits, changes in our deposit mix and our ability to maintain adequate liquidity and funding; uninsured deposits; deterioration in credit quality, including in our commercial real estate, construction and land development and commercial and financial loan portfolios, and the adequacy of our allowance for credit losses; our concentration in commercial real estate lending and economic and real estate market conditions in the Atlanta metropolitan area and Georgia; our payment services and mortgage warehouse program; our ability to successfully integrate Tandem Bancorp, Inc. and realize the anticipated benefits of the merger, and costs or difficulties related to the integration; the effects of our subordinated debt restructuring and our ability to access capital on acceptable terms; our ability to maintain regulatory capital levels, and changes in laws, regulations and supervisory policies applicable to bank holding companies and banks; the absence of a prior public trading market for our common stock, the direct listing process and the potential volatility of our stock price; the increased costs and demands of operating as a public company, including compliance with the Sarbanes-Oxley Act and Nasdaq listing standards, and the effects of our status as an emerging growth company; cybersecurity incidents, fraud, and failures or interruptions of our operational or third-party systems; our ability to attract and retain key personnel; and general economic, political and market conditions, including inflation, government fiscal and trade policies and geopolitical events. Additional factors are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of GBC’s registration statement on Form S-1 (File No. 333-299281), which is available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Except as required by law, GBC does not undertake any obligation to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (dollar amounts in thousands, except per share data) Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 Per Share Data (Common Stock): Basic EPS $ 0.59 $ 0.61 $ 0.91 $ 0.94 $ 0.88 $ 2.07 $ 1.73 Diluted EPS 0.57 0.60 0.89 0.93 0.87 1.97 1.69 Book value per common share 26.95 26.27 25.03 24.27 23.31 26.95 23.31 Tangible book value per common share 1 25.08 24.36 23.81 23.03 22.05 25.08 22.05 Common Stock Data: Weighted average basic shares outstanding for the period 10,651,178 9,185,401 8,454,057 8,440,835 8,439,081 9,430,212 8,170,725 Weighted average diluted shares outstanding for the period 10,920,982 9,393,815 8,656,349 8,515,521 8,513,767 9,944,217 8,376,614 Summary of Credit Ratios: ACL to total LHI 1.36 % 1.39 % 1.40 % 1.48 % 1.43 % 1.36 % 1.43 % NPAs to total assets 0.70 0.53 0.67 0.55 0.47 0.70 0.47 NPAs to total loans and OREO 0.99 0.83 1.02 0.85 0.72 0.99 0.72 Net charge-offs to average loans outstanding 2 0.16 — 0.23 0.02 0.17 0.13 0.07 Summary Performance Ratios: Return on average assets 2 0.80 % 0.80 % 1.22 % 1.17 % 1.13 % 0.92 % 0.77 % Return on average equity 2 8.72 9.90 14.77 15.53 15.14 10.83 10.35 Return on average tangible common equity 1, 2 9.70 10.80 15.76 16.62 16.26 11.81 11.06 Efficiency ratio 69.40 73.11 61.74 63.38 63.13 68.26 71.84 Net interest margin 4.17 4.31 4.35 4.33 4.37 4.29 4.24 Selected Performance Metrics - Operating: Diluted operating EPS 1 $ 0.74 $ 0.87 $ 0.89 $ 0.94 $ 0.87 $ 2.41 $ 2.27 Pre-tax, pre-provision operating return on average assets 1, 2 1.65 % 1.74 % 1.83 % 1.70 % 1.65 % 1.73 % 1.62 % Pre-tax, pre-provision operating return on average loans 1, 2 2.38 2.59 2.72 2.59 2.47 2.55 2.45 Operating return on average assets 1,2 1.03 1.17 1.22 1.19 1.14 1.13 1.04 Operating return on average tangible common equity 1,2 12.41 15.61 15.84 16.82 16.33 14.42 14.80 Operating efficiency ratio 1 62.25 62.38 61.57 62.95 62.98 62.08 63.77 Georgia Banking Company, Inc. Capital Ratios: Average shareholders' equity to average total assets 9.16 % 8.10 % 8.23 % 7.56 % 7.50 % 8.53 % 7.47 % Tangible common equity to tangible assets 1 8.59 7.97 7.56 7.22 6.84 8.59 6.84 Tier 1 capital to average assets (leverage) 3 9.17 9.43 8.31 7.64 7.59 9.17 7.59 Common equity tier 1 capital 3 10.59 10.29 9.24 9.06 8.53 10.59 8.53 Tier 1 capital to risk-weighted assets 3 10.87 10.58 9.57 9.39 8.85 10.87 8.85 Total capital to risk-weighted assets 3 14.96 14.32 13.67 13.61 12.93 14.96 12.93 1 Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. 2 Annualized. 3 Capital ratios are preliminary. GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (dollar amounts in thousands) Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Assets Cash and due from banks $ 10,486 $ 11,649 $ 8,969 $ 7,026 $ 6,643 Interest-bearing deposits with banks 232,942 393,825 153,039 235,704 232,670 Federal funds sold 36,128 27,853 20,316 37,643 35,631 Cash and cash equivalents 279,556 433,327 182,324 280,373 274,944 Debt securities available for sale 101,683 75,087 65,879 51,796 56,426 Debt securities held to maturity 51,059 49,360 47,968 40,102 41,417 Other investments 2,939 2,896 7,383 2,585 13,201 Loans held for sale 374,036 500,560 519,520 505,360 488,732 Loans, net of unearned income 2,218,614 2,089,860 1,760,354 1,724,934 1,756,164 Allowance for credit losses (30,080 ) (28,955 ) (24,589 ) (25,574 ) (25,066 ) Loans, net 2,562,570 2,561,465 2,255,285 2,204,720 2,219,830 Premises and equipment, net 17,621 17,953 18,143 18,550 19,085 Operating lease right of use assets 35,876 36,808 35,789 36,578 37,356 Goodwill 9,732 9,732 4,809 4,809 4,809 Core deposit intangible 10,193 10,477 5,502 5,656 5,810 Cash value of bank owned life insurance 36,058 35,760 30,708 30,996 30,761 Accrued interest and other assets 28,705 29,479 25,938 26,167 27,570 Total assets $ 3,135,992 $ 3,262,344 $ 2,679,728 $ 2,702,332 $ 2,731,209 Liabilities and Shareholders’ Equity: Noninterest-bearing $ 702,950 $ 667,359 $ 584,780 $ 617,388 $ 548,168 Interest-bearing 1,999,437 2,171,263 1,647,262 1,742,297 1,624,968 Total deposits 2,702,387 2,838,622 2,232,042 2,359,685 2,173,136 Subordinated notes, net 74,360 75,405 64,100 63,999 63,899 Junior subordinated debentures 7,217 7,217 7,217 7,217 7,217 FHLB advances — — 100,000 — 225,000 Operating lease liabilities 37,751 38,470 37,365 38,071 38,758 Accrued interest and other liabilities 26,647 23,971 26,950 28,446 26,490 Total liabilities 2,848,362 2,983,685 2,467,674 2,497,418 2,534,500 Preferred stock — — — — — Common stock 103 103 85 84 84 Non-voting common stock 4 3 — — — Additional paid-in capital 221,369 214,318 152,214 152,302 151,962 Retained earnings 74,253 67,990 62,369 54,694 46,760 Accumulated other comprehensive loss (8,099 ) (3,755 ) (2,614 ) (2,166 ) (2,097 ) Total shareholders’ equity $ 287,630 $ 278,659 $ 212,054 $ 204,914 $ 196,709 Total liabilities and shareholders’ equity $ 3,135,992 $ 3,262,344 $ 2,679,728 $ 2,702,332 $ 2,731,209 GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (dollar amounts in thousands, except per share data) Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 Interest income: Loans held for sale $ 6,279 $ 7,907 $ 7,096 $ 8,808 $ 8,683 $ 21,282 $ 23,072 Loans, including fees 37,763 33,200 30,512 31,582 32,067 101,475 88,161 Investment securities 1,503 1,224 1,023 1,087 1,044 3,750 3,062 Federal funds sold, deposits in banks and other investments 3,093 1,901 1,911 2,273 2,006 6,905 6,827 Total interest income $ 48,638 $ 44,232 $ 40,542 $ 43,750 $ 43,800 $ 133,412 $ 121,122 Interest expense: Transaction and savings accounts $ 8,963 $ 6,297 $ 6,215 $ 6,358 $ 6,428 $ 21,475 $ 18,687 Certificate and other time deposits 6,377 6,779 6,505 7,697 7,104 19,661 21,228 Advances from FHLB — 1,192 35 692 1,999 1,227 4,398 Other borrowed funds 1,879 875 869 861 892 3,623 2,573 Total interest expense 17,219 15,143 13,624 15,608 16,423 45,986 46,886 Net interest income $ 31,419 $ 29,089 $ 26,918 $ 28,142 $ 27,377 $ 87,426 $ 74,236 Provision for credit losses – loans 2,019 1,104 — 616 734 3,123 3,905 Provision for credit losses – unfunded commitments — — 1,104 — — 1,104 — Net interest income after provision for credit losses $ 29,400 $ 27,985 $ 25,814 $ 27,526 $ 26,643 $ 83,199 $ 70,331 Noninterest income: Service charges and fees $ 848 $ 760 $ 659 $ 585 $ 550 $ 2,267 $ 1,556 Mortgage banking activity 1,038 1,380 980 973 752 3,398 1,777 Bank owned life insurance income 298 235 228 235 233 761 666 Gain (loss) on sale of loans 328 348 560 520 (344 ) 1,236 1,044 Other 313 553 651 499 607 1,517 2,484 Total noninterest income $ 2,825 $ 3,276 $ 3,078 $ 2,812 $ 1,798 $ 9,179 $ 7,527 Noninterest expenses: Salaries and employee benefits $ 13,721 $ 13,004 $ 11,897 $ 12,469 $ 11,875 $ 38,622 $ 33,453 Occupancy 2,149 2,074 1,926 2,148 2,161 6,149 6,347 FDIC assessment and other regulatory charges 466 525 525 585 572 1,516 1,670 Professional fees 1,152 1,157 1,074 1,088 889 3,383 2,384 Communications, data processing and equipment 3,457 2,983 2,724 2,932 2,598 9,164 7,460 Direct listing expense 1,954 — — — — 1,954 — Merger and acquisition expense 493 3,472 51 134 44 4,016 6,597 Other 373 446 323 262 279 1,142 828 Total other noninterest expense $ 23,765 $ 23,661 $ 18,520 $ 19,618 $ 18,418 $ 65,946 $ 58,739 Income before income tax expense $ 8,460 $ 7,600 $ 10,372 $ 10,720 $ 10,023 $ 26,432 $ 19,119 Income tax expense 2,197 1,979 2,697 2,786 2,608 6,873 4,973 Net income $ 6,263 $ 5,621 $ 7,675 $ 7,934 $ 7,415 $ 19,559 $ 14,146 Basic earnings per common share (common stock and non-voting common stock) $ 0.59 $ 0.61 $ 0.91 $ 0.94 $ 0.88 $ 2.07 $ 1.73 Diluted earnings per common share (common stock and non-voting common stock) $ 0.57 $ 0.60 $ 0.89 $ 0.93 $ 0.87 $ 1.97 $ 1.69 Weighted average common shares outstanding (common stock and non-voting common stock): Basic 10,651,178 9,185,401 8,454,057 8,440,835 8,439,081 9,430,212 8,170,725 Diluted 10,920,982 9,393,815 8,656,349 8,515,521 8,513,767 9,944,217 8,376,614 GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (unaudited) Three Months Ended September 30, 2026 Three Months Ended June 30, 2026 Three Months Ended September 30, 2025 (dollar amounts in thousands) Average Balance Interest and Fees Yield / Rate Average Balance Interest and Fees Yield / Rate Average Balance Interest and Fees Yield / Rate Earnings Assets: Interest bearing deposits with banks $ 253,723 $ 2,439 3.81 % $ 168,815 $ 1,412 3.35 % $ 130,489 $ 1,408 4.28 % Federal funds sold and other investments 66,745 654 3.89 45,761 489 4.29 51,641 598 4.59 Securities U.S. Treasury/agency securities 17,048 178 4.14 11,824 123 4.17 35,588 390 4.35 Mortgage backed securities 113,377 1,164 4.07 97,968 960 3.93 56,626 527 3.69 All other securities 12,534 161 5.10 12,849 141 4.40 11,920 127 4.23 Total securities (cost basis) 142,959 1,503 4.17 122,641 1,224 4.00 104,134 1,044 3.98 Loans Single family residential 376,607 5,096 5.37 303,278 4,104 5.43 259,410 3,811 5.83 Other real estate loans 1,266,674 23,318 7.30 1,100,938 20,370 7.42 930,686 17,967 7.66 Commercial & financial loans 455,734 8,518 7.42 427,398 7,820 7.34 500,503 9,428 7.47 Consumer loans 51,718 831 6.37 55,624 906 6.53 47,569 861 7.18 Loans held for sale 378,269 6,279 6.59 483,512 7,907 6.56 463,439 8,683 7.43 Total loans 2,529,002 44,042 6.91 2,370,750 41,107 6.95 2,201,607 40,750 7.34 Total earnings assets $ 2,992,429 $ 48,638 6.45 % $ 2,707,967 $ 44,232 6.55 % 2,487,871 43,800 6.98 % Noninterest-earning assets 116,548 104,268 104,844 Total assets $ 3,108,977 $ 2,812,235 $ 2,592,715 Interest Bearing Liabilities: Demand deposits - interest bearing $ 327,392 $ 1,430 1.73 % $ 305,928 $ 1,250 1.64 % $ 262,043 $ 1,359 2.06 % Savings/Money market 998,011 7,533 2.99 706,767 5,047 2.86 637,960 5,069 3.15 Time deposits 655,110 6,377 3.86 699,357 6,779 3.89 665,568 7,104 4.23 Total interest-bearing deposits 1,980,513 15,340 3.07 1,712,052 13,076 3.06 1,565,571 13,532 3.43 FHLB advances — — — 122,379 1,192 3.91 174,185 1,999 4.55 Other borrowed funds 94,094 1,879 7.92 75,451 875 4.65 71,062 892 4.98 Total interest-bearing liabilities $ 2,074,607 $ 17,219 3.29 % $ 1,909,882 $ 15,143 3.18 % $ 1,810,818 $ 16,423 3.60 % Noninterest Bearing Liabilities: Noninterest bearing deposits 683,886 614,472 520,509 Other noninterest-bearing liabilities 65,621 60,161 67,031 Total noninterest-bearing liabilities 749,507 674,633 587,540 Shareholders' equity 284,863 227,720 194,357 Total liabilities and shareholders' equity $ 3,108,977 $ 2,812,235 $ 2,592,715 Net interest income $ 31,419 $ 29,089 $ 27,377 Net interest spread 3.16 % 3.37 % 3.39 % Net interest margin 4.17 % 4.31 % 4.37 % GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (unaudited) Nine Months Ended September 30, 2026 Nine Months Ended September 30, 2025 (dollar amounts in thousands) Average Balance Interest and Fees Yield / Rate Average Balance Interest and Fees Yield / Rate Earnings Assets: Interest bearing deposits with banks $ 192,630 $ 5,204 3.61 % $ 131,708 $ 4,339 4.40 % Federal funds sold and other investments 54,107 1,701 4.20 70,998 2,488 4.69 Securities U.S. Treasury/agency securities 15,641 496 4.24 42,379 1,402 4.42 Mortgage backed securities 95,002 2,826 3.98 50,371 1,325 3.52 All other securities 12,447 428 4.60 10,794 335 4.15 Total securities (cost basis) 123,090 3,750 4.07 103,544 3,062 3.95 Loans Single family residential 317,724 12,933 5.44 253,165 11,043 5.83 Other real estate loans 1,120,332 62,204 7.42 843,365 47,813 7.58 Commercial & financial loans 430,224 23,814 7.40 477,368 26,949 7.55 Consumer loans 51,526 2,524 6.55 45,097 2,356 6.98 Loans held for sale 433,116 21,282 6.57 415,369 23,072 7.43 Total loans 2,352,922 122,757 6.98 2,034,364 111,233 7.31 Total earnings assets $ 2,722,749 $ 133,412 6.55 % $ 2,340,614 $ 121,122 6.92 % Noninterest-earning assets $ 106,442 $ 103,533 Total assets $ 2,829,191 $ 2,444,147 Interest Bearing Liabilities: Demand deposits - interest bearing $ 310,755 $ 3,908 1.68 % $ 263,362 $ 4,028 2.04 % Savings/Money market $ 801,658 $ 17,567 2.93 % $ 615,365 $ 14,659 3.18 % Time deposits $ 673,466 $ 19,661 3.90 % $ 652,244 $ 21,228 4.35 % Total interest-bearing deposits $ 1,785,879 $ 41,136 3.08 % $ 1,530,971 $ 39,915 3.49 % FHLB advances $ 41,984 $ 1,227 3.91 % $ 127,648 $ 4,398 4.61 % Other borrowed funds $ 80,351 $ 3,623 6.03 % $ 69,337 $ 2,573 4.96 % Total interest-bearing liabilities $ 1,908,214 $ 45,986 3.22 % $ 1,727,956 $ 46,886 3.63 % Noninterest Bearing Liabilities: Noninterest bearing deposits $ 616,760 $ 468,001 Other noninterest-bearing liabilities $ 62,820 $ 65,502 Total noninterest-bearing liabilities $ 679,580 $ 533,503 Shareholders' equity $ 241,397 $ 182,688 Total liabilities and shareholders' equity $ 2,829,191 $ 2,444,147 Net interest income $ 87,426 $ 74,236 Net interest spread 3.33 % 3.29 % Net interest margin 4.29 % 4.24 % GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (dollar amounts in thousands) Loans and Deposit Portfolio Composition Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 (In thousands, except percentages) Loans Held for Investment Construction and land development $ 295,557 13.3 % $ 269,655 12.9 % $ 223,034 12.6 % $ 236,851 13.7 % 242,182 13.8 % Single-family residential 398,003 17.9 347,613 16.6 285,059 16.1 276,719 16.0 265,268 15.1 Commercial real estate 943,603 42.4 892,007 42.6 733,104 41.5 679,103 39.2 712,014 40.4 Multifamily 82,640 3.7 70,412 3.4 62,682 3.6 66,341 3.8 56,666 3.2 Commercial and financial 456,838 20.5 460,266 22.0 404,215 22.9 428,006 24.7 439,311 24.9 Consumer 47,914 2.2 54,845 2.6 57,558 3.3 43,223 2.5 45,758 2.6 Total Loans Held for Investment 1 $ 2,224,555 100.0 % $ 2,094,798 100.0 % $ 1,765,652 100.0 % $ 1,730,243 100.0 % $ 1,761,199 100.0 % Loans Held for Sale 374,036 500,560 519,520 505,360 488,732 Total Loans $ 2,598,591 $ 2,595,358 $ 2,285,172 $ 2,235,603 $ 2,249,931 Deposits Demand - Noninterest-bearing $ 702,950 26.0 % $ 667,359 23.5 % $ 584,780 26.2 % $ 617,388 26.2 % $ 548,168 25.2 % Demand - Interest-bearing 347,110 12.8 402,874 14.2 342,160 15.3 344,982 14.6 275,941 12.7 Savings and money market 1,011,988 37.4 1,078,437 38.0 627,568 28.1 727,623 30.8 666,130 30.7 Time deposits 640,339 23.7 689,952 24.3 677,534 30.4 669,692 28.4 682,897 31.4 Total deposits $ 2,702,387 100.0 % $ 2,838,622 100.0 % $ 2,232,042 100.0 % $ 2,359,685 100.0 % $ 2,173,136 100.0 % Total loans to total deposits ratio 96.2 % 91.4 % 102.4 % 94.7 % 103.5 % Total loans to total deposits ratio, excluding LHFS 82.3 % 73.8 % 79.1 % 73.3 % 81.0 % 1 Total loans held for investment does not include deferred fees/costs of $5.9 million, $4.9 million, $5.3 million, $5.3 million and $5.0 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025 and September 30, 2025, respectively. GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Financial Highlights (dollar amounts in thousands) Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 NPAs: Nonaccrual loans $ 21,967 $ 17,268 $ 17,368 $ 14,674 $ 12,567 $ 21,967 $ 12,567 Accruing loans 90 or more days past due 106 39 556 68 135 106 135 Total nonperforming loans held for investment 22,073 17,307 17,924 14,742 12,702 22,073 12,702 Other real estate owned — — — — — — — Total NPAs $ 22,073 $ 17,307 $ 17,924 $ 14,742 $ 12,702 $ 22,073 $ 12,702 Charge-offs: Construction and land development $ 74 $ — $ — $ — $ — $ 74 $ 60 Single-family residential — — — 184 — — — Commercial real estate — — — — — — — Multifamily — — — — — — — Commercial and financial 873 — 96 — — 969 — Consumer — 1 911 12 762 912 762 Total Charge-offs 947 1 1,007 196 762 1,955 822 Recoveries: Construction and land development $ — $ — $ 7 $ — $ 1 $ 7 $ — Single-family residential 54 — — 85 — 54 2 Commercial real estate — — — — — — — Multifamily — — — — — — — Commercial and financial — 9 15 3 2 24 16 Consumer — — — — — — 1 Total Recoveries $ 54 $ 9 $ 22 $ 88 $ 3 85 $ 19 Net charge-offs $ 893 $ (8 ) $ 985 $ 108 $ 759 $ 1,870 $ 803 Provision for credit losses $ 2,019 $ 1,104 $ — $ 616 $ 734 $ 3,123 $ 3,905 Day 1 acquisition allowance for credit losses — 3,254 — — — 3,254 1,364 Allowance for credit losses $ 30,080 $ 28,955 $ 24,589 $ 25,574 $ 25,066 $ 30,080 $ 25,066 Asset Quality Ratios: NPAs to total assets 0.70 % 0.53 % 0.67 % 0.55 % 0.47 % 0.70 % 0.47 % NPAs to total loans and OREO 0.99 0.83 1.02 0.85 0.72 0.99 0.72 NPLs to total LHI 0.99 0.83 1.02 0.85 0.72 0.99 0.72 ACL to total LHI 1.36 1.39 1.40 1.48 1.43 1.36 1.43 Net charge-offs to average loans outstanding 1 0.16 — 0.23 0.02 0.17 0.13 0.07 1 Annualized. GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited) We identify certain financial measures discussed in this earnings release as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP, in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios calculated using exclusively either one or both of (i) financial measures calculated in accordance with GAAP and (ii) operating measures or other measures that are not non-GAAP financial measures. The non-GAAP financial measures that we present in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we present in this earnings release may differ from that of other companies reporting measures with similar names. You should understand how such other financial institutions calculate their financial measures that appear to be similar or have similar names to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures. Tangible Book Value Per Common Share. Tangible book value per common share is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total shareholders’ equity less goodwill and core deposit intangibles, net of accumulated amortization; and (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by the number of common stock and non-voting common stock outstanding. For tangible book value per common share, the most directly comparable financial measure calculated in accordance with GAAP is book value per common share. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value. The following table reconciles, as of the dates set forth below, total shareholders’ equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share: As of Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Tangible Common Equity Total shareholders' equity $ 287,630 $ 278,659 $ 212,054 $ 204,914 $ 196,709 Adjustments: Goodwill (9,732 ) (9,732 ) (4,809 ) (4,809 ) (4,809 ) Core deposit intangibles (10,193 ) (10,477 ) (5,502 ) (5,656 ) (5,810 ) Tangible common equity $ 267,705 $ 258,450 $ 201,743 $ 194,449 $ 186,090 Common shares and non-voting stock outstanding 10,672,150 10,609,235 8,473,484 8,444,343 8,439,081 Book value per common share $ 26.95 $ 26.27 $ 25.03 $ 24.27 $ 23.31 Tangible book value per common share $ 25.08 $ 24.36 $ 23.81 $ 23.03 $ 22.05 GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited) Tangible Common Equity to Tangible Assets. Tangible common equity to tangible assets is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total shareholders’ equity, less goodwill and core deposit intangibles, net of accumulated amortization; (b) tangible assets as total assets less goodwill and core deposit intangibles, net of accumulated amortization; and (c) tangible common equity to tangible assets as tangible common equity (as described in clause (a)) divided by tangible assets (as described in clause (b)). For tangible common equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity to total assets. We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, in each case, exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing both total shareholders’ equity and assets while not increasing our tangible common equity or tangible assets. The following table reconciles, as of the dates set forth below, total shareholders’ equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets: As of Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 (unaudited) (unaudited) (unaudited) (unaudited) Tangible Common Equity Total shareholders' equity $ 287,630 $ 278,659 $ 212,054 $ 204,914 $ 196,709 Adjustments: Goodwill (9,732 ) (9,732 ) (4,809 ) (4,809 ) (4,809 ) Core deposit intangibles (10,193 ) (10,477 ) (5,502 ) (5,656 ) (5,810 ) Tangible common equity $ 267,705 $ 258,450 $ 201,743 $ 194,449 $ 186,090 Tangible Assets Total assets $ 3,135,992 $ 3,262,344 $ 2,679,728 $ 2,702,332 $ 2,731,209 Adjustments: Goodwill (9,732 ) (9,732 ) (4,809 ) (4,809 ) (4,809 ) Core deposit intangibles (10,193 ) (10,477 ) (5,502 ) (5,656 ) (5,810 ) Tangible Assets $ 3,116,067 $ 3,242,135 $ 2,669,417 $ 2,691,867 $ 2,720,590 Tangible Common Equity to Tangible Assets 8.59 % 7.97 % 7.56 % 7.22 % 6.84 % GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited) Return on Average Tangible Common Equity. Return on average tangible common equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) net income available for common shareholders adjusted for amortization of core deposit intangibles (which we refer to as “return”) as net income, plus amortization of core deposit intangibles, less tax benefit at the statutory rate; (b) average tangible common equity as total average shareholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization; and (c) return (as described in clause (a)) divided by average tangible common equity (as described in clause (b)). For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity. We believe that this measure is important to many investors in the marketplace who are interested in the return on common equity, exclusive of the impact of core deposit intangibles. Goodwill and core deposit intangibles have the effect of increasing total shareholders’ equity while not increasing our tangible common equity. This measure is particularly relevant to acquisitive institutions that may have higher balances in goodwill and core deposit intangibles than non-acquisitive institutions. The following table reconciles, as of the dates set forth below, average tangible common equity to average common equity and net income available for common shareholders adjusted for amortization of core deposit intangibles, net of taxes to net income and presents our return on average tangible common equity: For the periods ended Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 (Dollars in thousands) Net income available for common shareholders adjusted for amortization of core deposit intangibles Net income $ 6,263 $ 5,621 $ 7,675 $ 7,934 $ 7,415 $ 19,559 $ 14,146 Adjustments: Plus: Amortization of core deposit intangibles 284 197 154 154 154 635 360 Less: Tax benefit at the statutory rate 74 51 40 40 40 166 94 Net income available for common shareholders adjusted for amortization of core deposit intangibles $ 6,473 $ 5,767 $ 7,789 $ 8,048 $ 7,529 $ 20,028 $ 14,412 Average Tangible Common Equity Total average shareholders' equity $ 284,863 $ 227,720 $ 210,794 $ 202,725 $ 194,357 $ 241,397 $ 182,688 Adjustments: Average goodwill (9,732 ) (6,432 ) (4,809 ) (4,809 ) (4,809 ) (7,009 ) (3,769 ) Average core deposit intangibles (10,373 ) (7,149 ) (5,594 ) (5,750 ) (5,889 ) (7,723 ) (4,673 ) Average tangible common equity $ 264,758 $ 214,139 $ 200,391 $ 192,166 $ 183,659 $ 226,665 $ 174,246 Return on Average Tangible Common Equity (Annualized) 9.70 % 10.80 % 15.76 % 16.62 % 16.26 % 11.81 % 11.06 % GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited) Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Loans, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus direct listing expenses, plus merger and acquisition expenses, less tax impact of adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus provision for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (c) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average shareholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by noninterest income plus adjustments to operating noninterest income, plus net interest income. We believe that these measures and the operating metrics calculated utilizing these measures are important to management and many investors in the marketplace who are interested in understanding the ongoing operating performance of the Company and provide meaningful comparisons to its peers. The following tables reconcile, as of the dates set forth below, operating net income and pre-tax, pre-provision operating earnings and related metrics: Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 (Dollars in thousands) Operating Earnings Net income $ 6,263 $ 5,621 $ 7,675 $ 7,934 $ 7,415 $ 19,559 $ 14,146 Plus: Direct listing expenses 1,954 — — — — 1,954 — Plus: Merger and acquisition expenses 493 3,472 51 134 44 4,016 6,597 Operating pre-tax income $ 8,710 $ 9,093 $ 7,726 $ 8,068 $ 7,459 $ 25,529 $ 20,743 Less: Tax impact of adjustments 636 903 13 35 11 1,552 1,715 Operating Earnings $ 8,074 $ 8,190 $ 7,713 $ 8,033 $ 7,448 $ 23,977 $ 19,028 Weighted average diluted shares outstanding 10,920,982 9,393,815 8,656,349 8,515,521 8,513,767 9,944,217 8,376,614 Diluted EPS $ 0.57 $ 0.60 $ 0.89 $ 0.93 $ 0.87 $ 1.97 $ 1.69 Diluted Operating EPS $ 0.74 $ 0.87 $ 0.89 $ 0.94 $ 0.87 $ 2.41 $ 2.27 Three Months Ended Nine Months Ended Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 (Dollars in thousands) Pre-Tax, Pre-Provision Operating Earnings Net income $ 6,263 $ 5,621 $ 7,675 $ 7,934 $ 7,415 $ 19,559 $ 14,146 Plus: Provision for income taxes 2,197 1,979 2,697 2,786 2,608 6,873 4,973 Plus: Provision for credit losses and unfunded commitments 2,019 1,104 1,104 616 734 4,227 3,905 Plus: Direct listing expenses 1,954 — — — — 1,954 — Plus: Merger and acquisition expenses 493 3,472 51 134 44 4,016 6,597 Net pre-tax, pre-provision operating earnings $ 12,926 $ 12,176 $ 11,527 $ 11,470 $ 10,801 $ 36,629 $ 29,621 Average total assets $ 3,108,977 $ 2,812,235 $ 2,560,329 $ 2,679,933 $ 2,592,715 $ 2,829,191 $ 2,444,147 Pre-tax, pre-provision operating return on average assets 1 1.65 % 1.74 % 1.83 % 1.70 % 1.65 % 1.73 % 1.62 % Average loans held for investment $ 2,150,733 $ 1,887,238 $ 1,716,675 $ 1,756,626 $ 1,738,167 $ 1,919,805 $ 1,618,995 Pre-tax, pre-provision operating return on average loans held for investment 1 2.38 % 2.59 % 2.72 % 2.59 % 2.47 % 2.55 % 2.45 % Average total assets $ 3,108,977 $ 2,812,235 $ 2,560,329 $ 2,679,933 $ 2,592,715 $ 2,829,191 $ 2,444,147 Return on average assets 1 0.80 % 0.80 % 1.22 % 1.17 % 1.13 % 0.92 % 0.77 % Operating return on average assets 1 1.03 % 1.17 % 1.22 % 1.19 % 1.14 % 1.13 % 1.04 % Operating earnings adjusted for amortization of core deposit intangibles Operating earnings $ 8,074 $ 8,190 $ 7,713 $ 8,033 $ 7,448 $ 23,977 $ 19,028 Adjustments: Plus: Amortization of core deposit intangibles 284 197 154 154 154 635 360 Less: Tax benefit at the statutory rate 74 51 40 40 40 166 94 Operating earnings adjusted for amortization of core deposit intangibles $ 8,283 $ 8,336 $ 7,827 $ 8,147 $ 7,562 $ 24,446 $ 19,294 Average Tangible Common Equity Total average shareholders' equity $ 284,863 $ 227,720 $ 210,794 $ 202,725 $ 194,357 $ 241,397 $ 182,688 Adjustments: Less: Average goodwill (9,732 ) (6,432 ) (4,809 ) (4,809 ) (4,809 ) (7,009 ) (3,769 ) Less: Average core deposit intangibles (10,373 ) (7,149 ) (5,594 ) (5,750 ) (5,889 ) (7,723 ) (4,673 ) Average tangible common equity $ 264,758 $ 214,139 $ 200,391 $ 192,166 $ 183,659 $ 226,665 $ 174,246 Operating return on average tangible common equity 1 12.41 % 15.61 % 15.84 % 16.82 % 16.33 % 14.42 % 14.80 % Efficiency ratio 69.40 % 73.11 % 61.74 % 63.38 % 63.13 % 68.26 % 71.84 % Operating efficiency ratio Net interest income $ 31,419 $ 29,089 $ 26,918 $ 28,142 $ 27,377 $ 87,426 $ 74,236 Noninterest income $ 2,825 $ 3,276 $ 3,078 $ 2,812 $ 1,798 $ 9,179 $ 7,527 Operating noninterest income $ 34,244 $ 32,365 $ 29,996 $ 30,954 $ 29,175 $ 96,605 $ 81,763 Noninterest expense $ 23,765 $ 23,661 $ 18,520 $ 19,618 $ 18,418 $ 65,946 $ 58,739 Less: Direct listing expenses $ 1,954 $ — $ — $ — $ — $ 1,954 $ — Less: Merger and acquisition expenses $ 493 $ 3,472 $ 51 $ 134 $ 44 $ 4,016 $ 6,597 Operating noninterest expense $ 21,318 $ 20,189 $ 18,469 $ 19,484 $ 18,374 $ 59,976 $ 52,142 Operating efficiency ratio 62.25 % 62.38 % 61.57 % 62.95 % 62.98 % 62.08 % 63.77 % 1 Annualized.