PRIME MERIDIAN BANK

uarterly incentive awards expense deferred 8,485 10,334 10,546 Tax benefit associated with incentive awards 2,487 2,939 2,965 As of December 31, 2025, all agent equity awards were fully vested with the exception of approximately 13,354 shares that vested on January 1, 2026. The following table summarizes non-cash share-based compensation expense by segment included in income from continuing operations: Year ended December 31, 2025 2024 2023 (In thousands) Term Life Insurance segment $ 3,224 $ 4,974 $ 4,285 Investment and Savings Products segment 3,333 3,171 2,927 Corporate and Other Distributed Products segment 18,043 15,390 11,031 Total non-cash share-based compensation expense $ 24,600 $ 23,535 $ 18,243 (17) Statutory Accounting and Dividend Restrictions U.S. Insurance Subsidiaries. Our

repreneurs who take responsibility for selling products, recruiting and developing other independent sales representatives, setting their own schedules and managing and paying the administrative expenses associated with their sales activities. • Highly accessible and low cost to entry: By offering a flexible time commitment opportunity, we are able to attract a significant number of recruits who desire to earn supplemental income and generally concentrate on smaller-sized transactions typical of middle-income consumers. Independent sales representatives are able to start their businesses with low fees, for which they receive technological support, pre-licensing training and access to licensing examination preparation programs. Independent sales representatives sell or refer products direct

ued under the Plan cannot exceed 400,000 shares of common stock. Shares available for issuance at February 28, 2026 were 188,269 . Certent, Inc. is the record keeper for the Plan. Administrative expenses of the Plan are paid by the Company. Plan Year The Plan year begins on March 1 and ends on February 28 (or February 29 in the case of a leap year). ​ Eligibility An employee of the Company or any Participating Subsidiary is eligible to participate in the Plan if the employee has been continuously employed by the Company or any Participating Subsidiary for at least 90 days (except that any bona fide leave of absence will not render a participant so long as the leave does not exceed three months or, if longer than three months, the individual’s right to reemployment is provided by statute or

free interest rate and annual dividend yield. Stock option awards granted under the 2016 Plan have a term that does not exceed 10 years and vest according to each award’s specific vesting schedule. Currently, all option awards granted to date vest 25 % upon grant and become fully exercisable after 3 years of service from the grant date. The following table provides information about stock options outstanding as of December 31, 2025 and 2024: Shares Weighted average exercise price Weighted average grant date fair value Outstanding at December 31, 2023 1,099,798 $ 11.55 $ 3.56 Exercised ( 51,700 ) 8.74 2.49 Granted 143,250 14.46 6.36 Forfeited ( 29,550 ) 14.39 4.86 Outstanding at December 31, 2024 1,161,798 $ 11.96 $ 3.92 Exercised ( 102,530 ) 9.38 2.87 Granted 147,750 14.44 6.60 Forfeited (

ution” of an insured depository institution, the claims of deposits of the institution, including the claims of the FDIC as subrogate of insured depositors, and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including depositors whose deposits are payable only outside of the United States and the parent bank holding company, with respect to any extensions of credit they have made to such insured depository institution. Interstate Branching Pennsylvania banking laws authorize banks in Pennsylvania to acquire existing bra