FIRST HAWAIIAN, INC.

Previous wording

On July 12, 2026, FHI and TriCo entered into a definitive agreement (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth therein, Horizon Merger Sub, Inc., a direct, wholly owned subsidiary of FHI, will merge with and into TriCo, with TriCo surviving the merger. Immediately following the merger, TriCo will merge with and into FHI, with FHI continuing as the surviving entity. Promptly following that second-step merger, Tri Counties Bank will merge with and into First Hawaiian Bank, with First Hawaiian Bank continuing as the surviving bank. Under the terms of the Merger Agreement, each share of TriCo common stock outstanding immediately prior to the effective time, subject to certain exceptions, will be converted into the right to receive 2.095 shares of First Hawaiian common stock, with cash paid in lieu of fractional shares. The exchange ratio is fixed, subject to adjustment as provided in the Merger Agreement.

Current wording

On July 12, 2026, FHI and TriCo entered into a definitive agreement (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth therein, Horizon Merger Sub, Inc., a direct, wholly owned subsidiary of FHI, will merge with and into TriCo, with TriCo surviving the merger. Immediately following the merger, TriCo will merge with and into FHI, with FHI continuing as the surviving entity. Promptly following that second-step merger, Tri Counties Bank will merge with and into First Hawaiian Bank, with First Hawaiian Bank continuing as the surviving bank. Under the terms of the Merger Agreement, each share of TriCo common stock outstanding immediately prior to the effective time of the merger, subject to certain exceptions, will be converted into the right to receive 2.095 shares of First Hawaiian common stock, with cash paid in lieu of fractional shares. The exchange ratio is fixed, subject to adjustment as provided in the Merger Agreement.

Previous wording

Each of the Voting and Support Agreements will terminate at the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement in accordance with its terms, and (c) any amendment to the Merger Agreement without the prior written consent of the relevant director if such amendment diminishes the Merger Consideration, changes the form of Merger Consideration or extends the termination date of the Merger Agreement other than pursuant to any extension right expressly provided in the Merger Agreement.

Current wording

Each of the Voting and Support Agreements will terminate at the earliest of (a) the effective time of the merger, (b) the termination of the Merger Agreement in accordance with its terms, and (c) any amendment to the Merger Agreement without the prior written consent of the relevant director if such amendment diminishes the Merger Consideration, changes the form of Merger Consideration or extends the termination date of the Merger Agreement other than pursuant to any extension right expressly provided in the Merger Agreement.

Previous wording

Hawaii’s economy continues to remain resilient in an environment facing challenges, including from: high consumer prices and housing affordability, both of which are expected to continue with the gradual pass-through of tariffs and the ongoing conflict with Iran; a steady out-migration of its population; adverse weather events alongside rising insurance costs; and slower economic growth with a 1.6% forecasted increase in the real gross domestic product for Hawaii in 2026 according to the State of Hawaii Department of Business, Economic Development & Tourism (“DBEDT”) as compared to a 2.2% forecasted increase for the United States overall in 2026 according to the Congressional Budget Office’s Budget and Economic Outlook. Recent geopolitical developments, including the conflicts in the Middle East, elevate uncertainty.

Current wording

Hawaii’s economy continues to remain resilient in an environment facing challenges, including from: high consumer prices and housing affordability, both of which are expected to continue with the gradual pass-through of tariffs and the ongoing conflict with Iran; a steady out-migration of its population; adverse weather events alongside rising insurance costs; and slower economic growth with a 1.3% forecasted increase in the real gross domestic product for Hawaii in 2026 according to the State of Hawaii Department of Business, Economic Development & Tourism (“DBEDT”) as compared to a 2.2% forecasted increase for the United States overall in 2026 according to the Congressional Budget Office’s Budget and Economic Outlook. Recent geopolitical developments, including the conflicts in the Middle East, elevate uncertainty.

Previous wording

Despite these challenges, according to the State of Hawaii DBEDT, the statewide seasonally adjusted unemployment rate was 2.6% at June 30, 2026, which is lower than the national seasonally adjusted unemployment rate of 4.2%.

Current wording

Despite these challenges, according to the State of Hawaii DBEDT, the statewide seasonally adjusted unemployment rate was 2.8% at September 30, 2026, which is lower than the national seasonally adjusted unemployment rate of 4.2%.

Previous wording

Tourism also remains stable, with the average daily domestic passenger counts for the six months ended June 30, 2026 five percent higher than the average daily domestic passenger counts during the six months ended June 30, 2025, according to the Hawaii Tourism Authority. Hawaii’s economy depends significantly on conditions of the U.S. economy and key international economies, particularly Japan, and the broader demand for travel of these key markets. International visitor arrivals have not yet recovered to pre-pandemic arrival levels and demand for tourism could be negatively impacted by increasing fuel prices.

Current wording

Tourism also remains stable, with the average daily domestic passenger counts for the nine months ended September 30, 2026 being 3.2 percent higher than the average daily domestic passenger counts during the nine months ended September 30, 2025, according to the Hawaii Tourism Authority. Hawaii’s economy depends significantly on conditions of the U.S. economy and key international economies, particularly Japan, and the broader demand for travel of these key markets. International visitor arrivals have not yet recovered to pre-pandemic arrival levels and demand for tourism could be negatively impacted by increasing fuel prices.

Previous wording

The local Oahu housing market, particularly condominiums, continues to experience some softening as compared to previous years primarily due to continued high interest rates and prices. According to the Honolulu Board of Realtors, the volume of single-family home sales increased by 3.9%, while condominium sales decreased by 2.3%, in each case when comparing the six months ended June 30, 2026 with the same period in 2025. The median price of a single-family home sold on Oahu during the first six months of 2026 was $1,180,000, an increase of 2.6% compared to the same period in 2025. The median price of a condominium sold on Oahu during the first six months of 2026 was $515,000, an increase of 1.5% compared to the median price during the same period in 2025. As of June 30, 2026, months of inventory of single-family homes and condominiums on Oahu were approximately 3.2 and 7.0 months, respectively, as compared to 3.7 and 7.0 months, respectively, as of June 30, 2025.

Current wording

The local Oahu housing market, particularly condominiums, continues to experience some softening as compared to previous years primarily due to continued high interest rates and prices. According to the Honolulu Board of Realtors, the volume of single-family home sales increased by 5.9%, while condominium sales decreased by 2.4%, in each case when comparing the nine months ended September 30, 2026 with the same period in 2025. The median price of a single-family home sold on Oahu during the first nine months of 2026 was $1,180,000, an increase of 3.1% compared to the same period in 2025. The median price of a condominium sold on Oahu during the first nine months of 2026 was $515,000, an increase of 2.0% compared to the median price during the same period in 2025. As of September 30, 2026, months of inventory of single-family homes and condominiums on Oahu were approximately 3.2 and 7.0 months, respectively, as compared to 3.4 and 6.4 months, respectively, as of September 30, 2025.

Previous wording

Net income was $73.4 million for the three months ended June 30, 2026, an increase of $0.1 million as compared to the same period in 2025. Basic and diluted earnings per share were both $0.60 for the three months ended June 30, 2026, an increase of $0.02 or 3% as compared to the same period in 2025. The slight increase in net income was primarily due to a $7.4 million increase in net interest income and a $6.3 million increase in noninterest income. This was partially offset by a $7.0 million increase in the provision for income taxes, a $5.5 million increase in noninterest expense and a $1.1 million increase in the provision for credit losses (the “Provision”).

Current wording

Net income was $63.7 million for the three months ended September 30, 2026, a decrease of $10.1 million or 14% as compared to the same period in 2025. Basic and diluted earnings per share were both $0.52 for the three months ended September 30, 2026, a decrease of $0.07 or 12% as compared to the same period in 2025. The decrease in net income was primarily due to a $34.3 million increase in noninterest expense, a $15.8 million increase in the provision for credit losses (the “Provision”) and a $0.9 million decrease in noninterest income. This was partially offset by a $13.9 million benefit for income taxes for the three months ended September 30, 2026, compared to a $22.3 million provision for income taxes for the three months ended September 30, 2025, and a $4.8 million increase in net interest income.

Previous wording

Our return on average total assets was 1.23% for the three months ended June 30, 2026, consistent with the same period in 2025, and our return on average total stockholders’ equity was 10.52% for the three months ended June 30, 2026, a decrease of 51 basis points from the same period in 2025. Our return on average tangible assets was 1.28% for the three months ended June 30, 2026, consistent with the same period in 2025, and our return on average tangible stockholders’ equity was 16.34% for the three months ended June 30, 2026, a decrease of 127 basis points from the same period in 2025. Our efficiency ratio was 56.17% for the three months ended June 30, 2026 compared to 57.23% for the same period in 2025.

Current wording

Our return on average total assets was 1.06% for the three months ended September 30, 2026, a decrease of 16 basis points from the same period in 2025, and our return on average total stockholders’ equity was 8.88% for the three months ended September 30, 2026, a decrease of 193 basis points from the same period in 2025. Our return on average tangible assets was 1.10% for the three months ended September 30, 2026, a decrease of 17 basis points from the same period in 2025, and our return on average tangible stockholders’ equity was 13.67% for the three months ended September 30, 2026, a decrease of 341 basis points from the same period in 2025, primarily due to a decrease in net income and an increase in average tangible equity. Our efficiency ratio was 69.18% for the three months ended September 30, 2026 compared to 55.29% for the same period in 2025.

Previous wording

Net income was $141.2 million for the six months ended June 30, 2026, an increase of $8.7 million or 7% as compared to the same period in 2025. Basic earnings per share was $1.16 for the six months ended June 30, 2026, an increase of $0.11 or 10% as compared to the same period in 2025. Diluted earnings per share was $1.15 for the six months ended June 30, 2026, an increase of $0.10 or 10% as compared to the same period in 2025. The increase in net income was primarily due to a $14.4 million increase in net interest income, an $8.7 million increase in noninterest income and a $4.4 million decrease in the Provision. This was partially offset by a $9.8 million increase in noninterest expense and a $9.0 million increase in the provision for income taxes.

Current wording

Net income was $204.9 million for the nine months ended September 30, 2026, a decrease of $1.4 million or 1% as compared to the same period in 2025. Basic earnings per share was $1.68 for the nine months ended September 30, 2026, an increase of $0.03 or 2% as compared to the same period in 2025. Diluted earnings per share was $1.67 for the nine months ended September 30, 2026, an increase of $0.03 or 2% as compared to the same period in 2025. The decrease in net income was primarily due to a $44.1 million increase in noninterest expense and an $11.4 million increase in the Provision. This was partially offset by a $27.2 million decrease in the provision for income taxes, a $19.2 million increase in net interest income and a $7.7 million increase in noninterest income.

Previous wording

Our return on average total assets was 1.19% for the six months ended June 30, 2026, an increase of seven basis points from the same period in 2025, and our return on average total stockholders’ equity was 10.19% for the six months ended June 30, 2026, an increase of 12 basis points for the same period in 2025. Our return on average tangible assets was 1.24% for the six months ended June 30, 2026, an increase of seven basis points from the same period in 2025, and our return on average tangible stockholders’ equity was 15.84% for the six months ended June 30, 2026, a decrease of 28 basis points from the same period in 2025. Our efficiency ratio was 56.95% for the six months ended June 30, 2026 compared to 57.71% for the same period in 2025.

Current wording

Our return on average total assets was 1.14% for the nine months ended September 30, 2026, a decrease of one basis point from the same period in 2025, and our return on average total stockholders’ equity was 9.75% for the nine months ended September 30, 2026, a decrease of 57 basis points for the same period in 2025. Our return on average tangible assets was 1.19% for the nine months ended September 30, 2026, a decrease of one basis point from the same period in 2025, and our return on average tangible stockholders’ equity was 15.09% for the nine months ended September 30, 2026, a decrease of 136 basis points from the same period in 2025. Our efficiency ratio was 61.08% for the nine months ended September 30, 2026 compared to 56.88% for the same period in 2025.

Previous wording

Our results for the six months ended June 30, 2026 were highlighted by the following:

Current wording

Our results for the nine months ended September 30, 2026 were highlighted by the following:

Previous wording

For the six months ended June 30, 2026, we continued to maintain high levels of liquidity and adequate reserves for credit losses. We also remained well-capitalized. Common Equity Tier 1 (“CET1”) was 13.27% as of June 30, 2026, an increase of 10 basis points from December 31, 2025. The increase in CET1 was primarily due to earnings for the six months ended June 30, 2026, partially offset by dividends declared and paid to the Company’s stockholders, common stock repurchased and an increase in risk-weighted assets.

Current wording

For the nine months ended September 30, 2026, we continued to maintain high levels of liquidity and adequate reserves for credit losses. We also remained well-capitalized. Common Equity Tier 1 (“CET1”) was 13.50% as of September 30, 2026, an increase of 33 basis points from December 31, 2025. The increase in CET1 was primarily due to earnings for the nine months ended September 30, 2026, partially offset by dividends declared and paid to the Company’s stockholders, common stock repurchased and an increase in risk-weighted assets.

Previous wording

Net interest income, on a fully taxable-equivalent basis, was $171.9 million for the three months ended June 30, 2026, an increase of $7.5 million or 5% compared to the same period in 2025. Our net interest margin was 3.25% for the three months ended June 30, 2026, an increase of 14 basis points from the same period in 2025. The increase in net interest income, on a fully taxable-equivalent basis, was primarily due to lower deposit funding and borrowing costs, partially offset by lower earning asset yields driven by lower yields in our loan and lease portfolio during the three months ended June 30, 2026, compared to the same period in 2025. Deposit funding costs were $61.2 million for the three months ended June 30, 2026, a decrease of $9.1 million or 13% compared to the same period in 2025, primarily due to a decrease in interest rates. Rates paid on our interest-bearing deposits were 1.75% for the three months ended June 30, 2026, a decrease of 34 basis points compared to the same period in 2025, primarily due to rate decreases. Total borrowing costs were nil for the three months ended June 30, 2026, a decrease of $250.0 million compared to the same period in 2025, as $250.0 million of FHLB advances matured during the third quarter of 2025. The yield on our loan and lease portfolio was 5.30% for the three months ended June 30, 2026, a decrease of 14 basis points as compared to the same period in 2025, primarily due to decreases in yields from our adjustable-rate commercial real estate and commercial and industrial loans, which are typically based on the SOFR.

Current wording

Net interest income, on a fully taxable-equivalent basis, was $175.2 million for the three months ended September 30, 2026, an increase of $4.8 million or 3% compared to the same period in 2025. Our net interest margin was 3.30% for the three months ended September 30, 2026, an increase of 11 basis points from the same period in 2025. The increase in net interest income, on a fully taxable-equivalent basis, was primarily due to lower deposit funding and lower borrowing costs, partially offset by lower earning asset yields driven by lower yields in our loan and lease portfolio during the three months ended September 30, 2026, compared to the same period in 2025. Deposit funding costs were $60.2 million for the three months ended September 30, 2026, a decrease of $10.6 million or 15% compared to the same period in 2025, primarily due to a decrease in interest rates. Rates paid on our interest-bearing deposits were 1.72% for the three months ended September 30, 2026, a decrease of 36 basis points compared to the same period in 2025, primarily due to rate decreases. Total borrowing costs were nil for the three months ended September 30, 2026, a decrease of $2.2 million compared to the same period in 2025, as $250.0 million of FHLB advances matured during the third quarter of 2025. The yield on our loan and lease portfolio was 5.30% for the three months ended September 30, 2026, a decrease of 21 basis points as compared to the same period in 2025, primarily due to lower yields from our adjustable-rate commercial real estate and commercial and industrial loans, which continued to reflect the impact of prior lower-rate market conditions.

Previous wording

For the six months ended June 30, 2026 and 2025, average balances, related income and expenses, on a fully taxable-equivalent basis, and resulting yields and rates are presented in Table 5. An analysis of the change in net interest income, on a fully taxable-equivalent basis, is presented in Table 6.

Current wording

For the nine months ended September 30, 2026 and 2025, average balances, related income and expenses, on a fully taxable-equivalent basis, and resulting yields and rates are presented in Table 5. An analysis of the change in net interest income, on a fully taxable-equivalent basis, is presented in Table 6.

Previous wording

Net interest income, on a fully taxable-equivalent basis, was $340.5 million for the six months ended June 30, 2026, an increase of $14.4 million or 4% compared to the same period in 2025. Our net interest margin was 3.22% for the six months ended June 30, 2026, an increase of 12 basis points from the same period in 2025. The increase in net interest income, on a fully taxable-equivalent basis, was primarily due to lower deposit funding costs and lower borrowing costs, partially offset by lower earning asset yields driven by lower yields in our loan and lease portfolio during the six months ended June 30, 2026 compared to the same period in 2025. Deposit funding costs were $123.3 million for the six months ended June 30, 2026, a decrease of $18.7 million or 13% compared to the same period in 2025, primarily due to a decrease in interest rates. Rates paid on our interest-bearing deposits were 1.77% for the six months ended June 30, 2026, a decrease of 36 basis points compared to the same period in 2025, primarily due to rate decreases. Total borrowing costs were nil for the six months ended June 30, 2026, a decrease of $250.0 million compared to the same period in 2025, as $250.0 million of FHLB advances matured during the third quarter of 2025. The yield on our loan and lease portfolio was 5.29% for the six months ended June 30, 2026, a decrease of 15 basis points as compared to the same period in 2025, primarily due to decreases in yields from our adjustable-rate commercial real estate and commercial and industrial loans, which are typically based on the SOFR.

Current wording

Net interest income, on a fully taxable-equivalent basis, was $515.7 million for the nine months ended September 30, 2026, an increase of $19.2 million or 4% compared to the same period in 2025. Our net interest margin was 3.25% for the nine months ended September 30, 2026, an increase of 12 basis points from the same period in 2025. The increase in net interest income, on a fully taxable-equivalent basis, was primarily due to lower deposit funding costs and lower borrowing costs, partially offset by lower earning asset yields driven by lower yields in our loan and lease portfolio during the nine months ended September 30, 2026 compared to the same period in 2025. Deposit funding costs were $183.5 million for the nine months ended September 30, 2026, a decrease of $29.3 million or 14% compared to the same period in 2025, primarily due to a decrease in interest rates. Rates paid on our interest-bearing deposits were 1.75% for the nine months ended September 30, 2026, a decrease of 36 basis points compared to the same period in 2025, primarily due to rate decreases. Total borrowing costs were nil for the nine months ended September 30, 2026, a decrease of $7.4 million compared to the same period in 2025, as $250.0 million of FHLB advances matured during the third quarter of 2025. The yield on our loan and lease portfolio was 5.29% for the nine months ended September 30, 2026, a decrease of 18 basis points as compared to the same period in 2025, primarily due to lower yields from our adjustable-rate commercial real estate and commercial and industrial loans, which continued to reflect the impact of prior lower-rate market conditions.

Previous wording

The Federal Reserve influences the general market rates of interest, including the deposit and loan rates offered by many financial institutions. Our loan portfolio is affected by changes in the prime interest rate. The prime rate decreased by 75 basis points in 2025 to end the year at 6.75%, where it remained as at the end of the second quarter of 2026. As noted above, our loan portfolio is also impacted by changes in the SOFR. At June 30, 2026, the one-month and three-month CME Term SOFR interest rates were 3.65% and 3.73%, respectively. At June 30, 2025, the one-month and three-month CME Term SOFR interest rates were 4.32% and 4.29%, respectively. The target range for the federal funds rate, which is the cost of immediately available overnight funds, decreased 75 basis points in 2025 to end the year at 3.50% to 3.75%, where it remained as at June 30, 2026. There continues to be uncertainty in the changing market and economic conditions.

Current wording

The Federal Reserve influences the general market rates of interest, including the deposit and loan rates offered by many financial institutions. Our loan portfolio is affected by changes in the prime interest rate. The prime rate decreased by 75 basis points in 2025 to end the year at 6.75%. The prime rate increased 25 basis points in September 2026, to end the third quarter at 7.00%. As noted above, our loan portfolio is also impacted by changes in the SOFR. At September 30, 2026, the one-month and three-month CME Term SOFR interest rates were 3.91% and 4.08%, respectively. At September 30, 2025, the one-month and three-month CME Term SOFR interest rates were 4.13% and 3.98%, respectively. The target range for the federal funds rate, which is the cost of immediately available overnight funds, decreased 75 basis points in 2025 to end the year at 3.50% to 3.75%. The federal funds rate increased 25 basis points in September 2026 to end the third quarter at 3.75% to 4.00%. There continues to be uncertainty in the changing market and economic conditions.

Previous wording

The Provision was $5.6 million for the three months ended June 30, 2026, an increase of $1.1 million or 24% compared to the same period in 2025. The increase was primarily due to increases in the provision for consumer loans, construction loans and commercial real estate loans and the provision for unfunded construction commitments. This was partially offset by decreases in the provision for commercial and industrial loans and residential mortgage loans. We recorded net charge-offs of loans and leases of $4.1 million and $3.3 million for the three months ended June 30, 2026 and 2025, respectively. This represented net charge-offs of 0.11% and 0.09% of average loans and leases, on an annualized basis, for the three months ended June 30, 2026 and 2025, respectively. The Provision was $10.6 million for the six months ended June 30, 2026, a decrease of $4.4 million or 29% compared to the same period in 2025. The decrease was primarily due to decreases in the provision for commercial and industrial loans, consumer loans, home equity lines and lease financing and the provision for unfunded home equity line commitments. This was partially offset by increases in the provision for commercial real estate loans and residential mortgage loans and the provision for unfunded construction commitments. We recorded net charge-offs of loans and leases of $9.0 million and $7.1 million for the six months ended June 30, 2026 and 2025, respectively. This represented net charge-offs of 0.13% and 0.10% of average loans and leases, on an annualized basis, for the six months ended June 30, 2026 and 2025, respectively. The ACL was $168.1 million as of June 30, 2026, a decrease of $0.4 million from December 31, 2025 and represented 1.15% of total outstanding loans and leases as of June 30, 2026, compared to 1.18% of total outstanding loans and leases as of December 31, 2025. The reserve for unfunded commitments was $37.7 million as of June 30, 2026, compared to $35.7 million as of December 31, 2025. The Provision is recorded to maintain the ACL and the reserve for unfunded commitments at levels deemed adequate by management based on the factors noted in the “Risk Governance and Quantitative and Qualitative Disclosures About Market Risk — Credit Risk” section of this MD&A.

Current wording

The Provision was $20.3 million for the three months ended September 30, 2026, an increase of $15.8 million as compared to the same period in 2025. This increase was primarily driven by a $12.5 million partial charge-off of a single commercial real estate loan during the third quarter of 2026. The increase was also attributable to increases in the provision for construction loans and commercial and industrial loans and the provision for unfunded commercial and industrial commitments. This was partially offset by decreases in the provision for home equity lines, residential mortgage loans, lease financing and consumer loans and the provision for unfunded construction commitments. We recorded net charge-offs of loans and leases of $21.9 million and $4.2 million for the three months ended September 30, 2026 and 2025, respectively. This represented net charge-offs of 0.60% and 0.12% of average loans and leases, on an annualized basis, for the three months ended September 30, 2026 and 2025, respectively. The Provision was $30.9 million for the nine months ended September 30, 2026, an increase of $11.4 million or 59% as compared to the same period in 2025. Consistent with the increase for the three months ended September 30, 2026, the increase was primarily driven by a $12.5 million partial charge-off of a single commercial real estate loan during the third quarter of 2026. The increase was also attributable to increases in the provision for construction loans and residential mortgage loans and the provision for unfunded commercial and industrial and construction commitments. This was partially offset by decreases in the provision for consumer loans, commercial and industrial loans, home equity lines and lease financing and the provision for unfunded home equity line commitments. We recorded net charge-offs of loans and leases of $31.0 million and $11.3 million for the nine months ended September 30, 2026 and 2025, respectively. This represented net charge-offs of 0.29% and 0.11% of average loans and leases, on an annualized basis, for the nine months ended September 30, 2026 and 2025, respectively. The ACL was $164.4 million as of September 30, 2026, a decrease of $4.0 million or 2% from December 31, 2025 and represented 1.14% of total outstanding loans and leases as of September 30, 2026, compared to 1.18% of total outstanding loans and leases as of December 31, 2025. The reserve for unfunded commitments was $39.7 million as of September 30, 2026, compared to $35.7 million as of December 31, 2025. The Provision is recorded to maintain the ACL and the reserve for unfunded commitments at levels deemed adequate by management based on the factors noted in the “Risk Governance and Quantitative and Qualitative Disclosures About Market Risk — Credit Risk” section of this MD&A.

Previous wording

Table 7 presents the major components of noninterest income for the three months ended June 30, 2026 and 2025 and Table 8 presents the major components of noninterest income for the six months ended June 30, 2026 and 2025:

Current wording

Table 7 presents the major components of noninterest income for the three months ended September 30, 2026 and 2025 and Table 8 presents the major components of noninterest income for the nine months ended September 30, 2026 and 2025:

Previous wording

Total noninterest income was $60.3 million for the three months ended June 30, 2026, an increase of $6.3 million or 12% as compared to the same period in 2025. Total noninterest income was $113.1 million for the six months ended June 30, 2026, an increase of $8.7 million or 8% as compared to the same period in 2025.

Current wording

Total noninterest income was $56.1 million for the three months ended September 30, 2026, a decrease of $0.9 million or 2% as compared to the same period in 2025. Total noninterest income was $169.2 million for the nine months ended September 30, 2026, an increase of $7.7 million or 5% as compared to the same period in 2025.

Previous wording

Service charges on deposit accounts were $8.3 million for the three months ended June 30, 2026, an increase of $0.5 million or 6% as compared to the same period in 2025. This increase was primarily due to a $0.6 million increase in overdraft and checking account fees. Service charges on deposit accounts were $16.5 million for the six months ended June 30, 2026, an increase of $1.1 million or 7% as compared to the same period in 2025. This increase was primarily due to a $1.1 million increase in overdraft and checking account fees.

Current wording

Service charges on deposit accounts were $8.7 million for the three months ended September 30, 2026, an increase of $0.6 million or 7% as compared to the same period in 2025. This increase was primarily due to a $0.7 million increase in overdraft and checking account fees. Service charges on deposit accounts were $25.2 million for the nine months ended September 30, 2026, an increase of $1.7 million or 7% as compared to the same period in 2025. This increase was primarily due to a $1.8 million increase in overdraft and checking account fees.

Previous wording

Credit and debit card fees were $15.4 million for the three months ended June 30, 2026, a decrease of $0.5 million or 3% as compared to the same period in 2025. This decrease was primarily due to a $0.2 million increase in network association dues and $0.1 million decrease in merchant services revenues. Credit and debit card fees were $30.5 million for the six months ended June 30, 2026, an increase of $0.1 million as compared to the same period in 2025.

Current wording

Credit and debit card fees were $15.7 million for the three months ended September 30, 2026, a decrease of $0.1 million or 1% as compared to the same period in 2025. Credit and debit card fees were $46.2 million for the nine months ended September 30, 2026, a minimal change as compared to the same period in 2025.

Previous wording

Other service charges and fees were $14.4 million for the three months ended June 30, 2026, an increase of $1.1 million or 8% as compared to the same period in 2025. This increase was primarily due to a $1.2 million increase in fees from annuities and securities. Other service charges and fees were $28.2 million for the six months ended June 30, 2026, an increase of $2.7 million or 10% as compared to the same period in 2025. This increase was primarily due to a $2.9 million increase in fees from annuities and securities, partially offset by a $0.4 million decrease in online banking fees.

Current wording

Other service charges and fees were $15.4 million for the three months ended September 30, 2026, an increase of $1.6 million or 11% as compared to the same period in 2025. This increase was primarily due to a $2.0 million increase in fees from annuities and securities, partially offset by a $0.3 million decrease in service fees related to participation loans. Other service charges and fees were $43.6 million for the nine months ended September 30, 2026, an increase of $4.3 million or 11% as compared to the same period in 2025. This increase was primarily due to a $4.9 million increase in fees from annuities and securities, partially offset by a $0.6 million decrease in online banking fees.

Previous wording

Trust and investment services income was $9.1 million for the three months ended June 30, 2026, a decrease of $0.1 million or 1% as compared to the same period in 2025. Trust and investment services income was $18.2 million for the six months ended June 30, 2026, a decrease of $0.3 million or 2% as compared to the same period in 2025.

Current wording

Trust and investment services income was $9.1 million for the three months ended September 30, 2026, a decrease of $0.1 million or 1% as compared to the same period in 2025. Trust and investment services income was $27.4 million for the nine months ended September 30, 2026, a decrease of $0.4 million or 1% as compared to the same period in 2025. This decrease was primarily due to a $0.5 million decrease in investment management fees.

Previous wording

BOLI income was $7.1 million for the three months ended June 30, 2026, an increase of $2.3 million or 50% as compared to the same period in 2025. This increase was primarily due to a $2.3 million increase in BOLI earnings. BOLI income was $11.2 million for the six months ended June 30, 2026, an increase of $2.1 million or 23% as compared to the same period in 2025. This increase was primarily due to a $1.4 million increase in BOLI earnings and a $0.7 million increase in death benefit proceeds from life insurance policies.

Current wording

BOLI income was $4.7 million for the three months ended September 30, 2026, a decrease of $1.6 million or 25% as compared to the same period in 2025. This decrease was primarily due to a $1.2 million decrease in BOLI earnings and a $0.4 million decrease in death benefit proceeds from life insurance policies. BOLI income was $15.9 million for the nine months ended September 30, 2026, an increase of $0.5 million or 3% as compared to the same period in 2025. This increase was primarily due to a $0.3 million increase in death benefit proceeds from life insurance policies and a $0.2 million increase in BOLI earnings.

Previous wording

Other noninterest income was $6.0 million for the three months ended June 30, 2026, an increase of $3.0 million as compared to the same period in 2025. This increase was primarily due to $1.6 million in excise tax refunds received during the three months ended June 30, 2026, a $1.0 million increase in customer-related interest rate swap fees and a $0.8 million class action settlement the Company received during the three months ended June 30, 2026, partially offset by a $0.4 million decrease in insurance proceeds received. Other noninterest income was $8.6 million for the six months ended June 30, 2026, an increase of $3.1 million or 56% as compared to the same period in 2025. This increase was primarily due to $1.7 million in excise tax refunds received during the six months ended June 30, 2026, a $0.8 million class action settlement the Company received during the six months ended June 30, 2026, a $0.6 million increase in volume-based incentives and a $0.5 million increase in customer-related interest rate swap fees, partially offset by a $0.4 million decrease in insurance proceeds received.

Current wording

Other noninterest income was $2.4 million for the three months ended September 30, 2026, a decrease of $1.3 million or 36% as compared to the same period in 2025. This decrease was primarily due to a $1.1 million decrease in customer-related interest rate swap fees and a $0.8 million decrease in volume-based incentives, partially offset by a $0.5 million decrease in net losses recognized in income related to derivative contracts. Other noninterest income was $11.0 million for the nine months ended September 30, 2026, an increase of $1.7 million or 18% as compared to the same period in 2025. This increase was primarily due to $1.7 million in excise tax refunds received during the nine months ended September 30, 2026, a $0.8 million class action settlement the Company received during the nine months ended September 30, 2026 and a $0.7 million decrease in net losses recognized in income related to derivative contracts. This was partially offset by a $0.6 million decrease in customer-related interest rate swap fees, a $0.4 million decrease in insurance proceeds received and a $0.3 million decrease in income due to adjustments to certain liabilities assumed as a result of the Reorganization Transactions.

Previous wording

Table 9 presents the major components of noninterest expense for the three months ended June 30, 2026 and 2025 and Table 10 presents the major components of noninterest expense for the six months ended June 30, 2026 and 2025:

Current wording

Table 9 presents the major components of noninterest expense for the three months ended September 30, 2026 and 2025 and Table 10 presents the major components of noninterest expense for the nine months ended September 30, 2026 and 2025:

Previous wording

Total noninterest expense was $130.4 million for the three months ended June 30, 2026, an increase of $5.5 million or 4% as compared to the same period in 2025. Total noninterest expense was $258.3 million for the six months ended June 30, 2026, an increase of $9.8 million or 4% as compared to the same period in 2025.

Current wording

Total noninterest expense was $160.0 million for the three months ended September 30, 2026, an increase of $34.3 million or 27% as compared to the same period in 2025. Total noninterest expense was $418.4 million for the nine months ended September 30, 2026, an increase of $44.1 million or 12% as compared to the same period in 2025.

Previous wording

Salaries and employee benefits expense was $62.4 million for the three months ended June 30, 2026, an increase of $2.9 million or 5% as compared to the same period in 2025. This increase was primarily due to a $1.5 million increase in base salaries and related payroll taxes, a $1.2 million increase in incentive compensation, a $0.6 million increase in group health plan costs and a $0.3 million increase in adjustments made to the deferred compensation plan as a result of market conditions. This was partially offset by a $0.9 million increase in payroll and benefit costs being deferred as loan origination costs. Salaries and employee benefits expense was $126.5 million for the six months ended June 30, 2026, an increase of $6.9 million or 6% as compared to the same period in 2025. This increase was primarily due to a $3.4 million increase in base salaries and related payroll taxes, a $2.6 million increase in incentive compensation, a $1.1 million increase in group health plan costs, a $0.4 million increase in mortgage banking commissions expense and a $0.3 million increase in adjustments made to the deferred compensation plan as a result of market conditions. This was partially offset by a $1.1 million increase in payroll and benefit costs being deferred as loan origination costs.

Current wording

Salaries and employee benefits expense was $63.2 million for the three months ended September 30, 2026, an increase of $1.6 million or 3% as compared to the same period in 2025. This increase was primarily due to a $1.1 million increase in base salaries and related payroll taxes, a $0.7 million decrease in payroll and benefit costs being deferred as loan origination costs, a $0.3 million increase in nonrecurring separation agreements and severance costs and a $0.3 million increase in group health plan costs. This was partially offset by a $0.7 million decrease in adjustments made to the deferred compensation plan as a result of market conditions. Salaries and employee benefits expense was $189.6 million for the nine months ended September 30, 2026, an increase of $8.5 million or 5% as compared to the same period in 2025. This increase was primarily due to a $4.5 million increase in base salaries and related payroll taxes, a $2.5 million increase in incentive compensation and a $1.4 million increase in group health plan costs.

Previous wording

Contracted services and professional fees were $18.4 million for the three months ended June 30, 2026, an increase of $2.4 million or 15% as compared to the same period in 2025. This increase was primarily due to a $4.2 million increase in audit, legal and consultant fees, partially offset by a $1.7 million decrease in outside services, primarily attributable to technology-related projects, marketing and new customer services. Contracted services and professional fees were $32.4 million for the six months ended June 30, 2026, an increase of $1.5 million or 5% as compared to the same period in 2025. This increase was primarily due to a $4.3 million increase in audit, legal and consultant fees, partially offset by a $2.7 million decrease in outside services, primarily attributable to technology-related projects, marketing and new customer services.

Current wording

Contracted services and professional fees were $13.8 million for the three months ended September 30, 2026, a decrease of $2.0 million or 13% as compared to the same period in 2025. This decrease was primarily due to a $2.2 million decrease in outside services, primarily attributable to technology-related projects, marketing and new customer services. Contracted services and professional fees were $42.0 million for the nine months ended September 30, 2026, a decrease of $4.6 million or 10% as compared to the same period in 2025. This decrease was primarily due to a $4.9 million decrease in outside services, primarily attributable to technology-related projects, marketing and new customer services.

Previous wording

Occupancy expense was $7.9 million for the three months ended June 30, 2026, a minimal change as compared to the same period in 2025. Occupancy expense was $15.7 million for the six months ended June 30, 2026, a decrease of $0.3 million or 2% as compared to the same period in 2025.

Current wording

Occupancy expense was $7.3 million for the three months ended September 30, 2026, an increase of $0.2 million or 3% as compared to the same period in 2025. Occupancy expense was $23.1 million for the nine months ended September 30, 2026, a decrease of $0.1 million as compared to the same period in 2025.

Previous wording

Equipment expense was $14.6 million for the three months ended June 30, 2026, an increase of $0.5 million or 4% as compared to the same period in 2025. This increase was primarily due to a $0.3 million increase in technology-related amortization and licensing and maintenance fees and a $0.2 million increase in furniture and equipment depreciation. Equipment expense was $29.3 million for the six months ended June 30, 2026, an increase of $1.4 million or 5% as compared to the same period in 2025. This increase was primarily due to a $0.8 million increase in furniture and equipment depreciation and a $0.7 million increase in technology-related amortization and licensing and maintenance fees.

Current wording

Equipment expense was $15.3 million for the three months ended September 30, 2026, an increase of $1.5 million or 11% as compared to the same period in 2025. This increase was primarily due to a $1.1 million increase in technology-related amortization and licensing and maintenance fees and a $0.3 million increase in furniture and equipment depreciation. Equipment expense was $44.7 million for the nine months ended September 30, 2026, an increase of $2.9 million or 7% as compared to the same period in 2025. This increase was primarily due to a $1.9 million increase in technology-related amortization and licensing and maintenance fees and a $1.1 million increase in furniture and equipment depreciation.

Previous wording

Regulatory assessment and fees were $3.4 million for the three months ended June 30, 2026, a decrease of $0.3 million or 9% as compared to the same period in 2025. Regulatory assessment and fees were $6.7 million for the six months ended June 30, 2026, a decrease of $0.9 million or 12% as compared to the same period in 2025. This decrease was primarily due to a decrease in the FDIC insurance assessment. During 2023, the FDIC approved a final rule for a special assessment to replenish the deposit insurance fund following bank failures occurring earlier in the year. As a result, the Company previously recorded a related loss of $16.3 million in the fourth quarter of 2023. During the first quarter of 2024, the FDIC issued a notice that the original loss estimate related to the 2023 bank failures was subsequently increased and that this increase would result in an additional assessment expense to affected institutions. As a result, we recorded a net expense related to the additional special assessment of $3.5 million for the year ended December 31, 2024. In December 2025, the FDIC reduced the rate at which the assessment is collected for the eighth quarter of the collection period, with an invoice payment date of March 30, 2026, from 3.36 basis points to 2.97 basis points. We recorded a reduction in the expense related to the additional special assessment of $2.6 million in 2025 and $0.2 million in the first quarter of 2026.

Current wording

Regulatory assessment and fees were $3.1 million for the three months ended September 30, 2026, a decrease of $0.2 million or 6% as compared to the same period in 2025. Regulatory assessment and fees were $9.8 million for the nine months ended September 30, 2026, a decrease of $1.1 million or 10% as compared to the same period in 2025. This decrease was primarily due to a decrease in the FDIC insurance assessment. During 2023, the FDIC approved a final rule for a special assessment to replenish the deposit insurance fund following bank failures occurring earlier in the year. As a result, the Company previously recorded a related loss of $16.3 million in the fourth quarter of 2023. During the first quarter of 2024, the FDIC issued a notice that the original loss estimate related to the 2023 bank failures was subsequently increased and that this increase would result in an additional assessment expense to affected institutions. As a result, we recorded a net expense related to the additional special assessment of $3.5 million for the year ended December 31, 2024. In December 2025, the FDIC reduced the rate at which the assessment is collected for the eighth quarter of the collection period, with an invoice payment date of March 30, 2026, from 3.36 basis points to 2.97 basis points. We recorded a reduction in the expense related to the additional special assessment of $2.6 million in 2025, $0.2 million in the first quarter of 2026 and $0.3 million in the third quarter of 2026.

Previous wording

Advertising and marketing expense was $2.2 million for the three months ended June 30, 2026, an increase of $0.1 million or 7% as compared to the same period in 2025. Advertising and marketing expense was $4.4 million for the six months ended June 30, 2026, an increase of $0.2 million or 5% as compared to the same period in 2025.

Current wording

Advertising and marketing expense was $2.2 million for the three months ended September 30, 2026, an increase of $0.1 million or 6% as compared to the same period in 2025. Advertising and marketing expense was $6.6 million for the nine months ended September 30, 2026, an increase of $0.3 million or 5% as compared to the same period in 2025.

Previous wording

Card rewards program expense was $8.4 million for the three months ended June 30, 2026, a minimal change as compared to the same period in 2025. Card rewards program expense was $16.8 million for the six months ended June 30, 2026, an increase of $0.5 million or 3% as compared to the same period in 2025. This increase was primarily due to a $0.3 million increase in credit card cash reward redemptions and a $0.2 million increase in priority rewards card redemptions.

Current wording

Card rewards program expense was $9.1 million for the three months ended September 30, 2026, an increase of $0.4 million or 5% as compared to the same period in 2025. This increase was primarily due to a $0.5 million increase in credit card cash reward redemptions. Card rewards program expense was $25.9 million for the nine months ended September 30, 2026, an increase of $0.9 million or 4% as compared to the same period in 2025. This increase was primarily due to a $0.8 million increase in credit card cash reward redemptions.

Previous wording

Other noninterest expense was $13.2 million for the three months ended June 30, 2026, a decrease of $0.1 million as compared to the same period in 2025. Other noninterest expense was $26.5 million for the six months ended June 30, 2026, an increase of $0.5 million or 2% as compared to the same period in 2025. This increase was primarily due to a $0.8 million increase in charitable contributions, a $0.3 million increase in postage expenses, a $0.3 million increase in brokers fees and a $0.3 million increase in operational losses and other charge-offs, partially offset by a $1.0 million decrease in software amortization expense and a $0.3 million decrease in pension-related expenses.

Current wording

Other noninterest expense was $39.4 million for the three months ended September 30, 2026, an increase of $25.9 million as compared to the same period in 2025. This increase was primarily due to a $24.3 million increase in expense due to adjustments to certain liabilities assumed as a result of the Reorganization Transactions, a $1.5 million increase in operational losses and other charge-offs and a $0.6 million increase in charitable contributions, partially offset by a $0.3 million decrease in shipping and delivery expenses. Other noninterest expense was $65.9 million for the nine months ended September 30, 2026, an increase of $26.4 million or 67% as compared to the same period in 2025. This increase was primarily due to a $24.3 million increase in expense due to adjustments to certain liabilities assumed as a result of the Reorganization Transactions, a $1.8 million increase in operational losses and other charge-offs, a $1.4 million increase in charitable contributions and a $0.5 million increase in brokers fees, partially offset by a $1.2 million decrease in software amortization expense and a $0.4 million decrease in pension-related expenses.

Previous wording

Our business segments are Retail Banking and Commercial Banking, with all other activities, including Treasury, reported in Corporate/Other. Table 11 summarizes net income (loss) from our business segments and Corporate/Other for the three and six months ended June 30, 2026 and 2025. Additional information about operating segment performance and Corporate/Other is presented in “Note 16. Reportable Operating Segments” contained in our unaudited interim consolidated financial statements.

Current wording

Our business segments are Retail Banking and Commercial Banking, with all other activities, including Treasury, reported in Corporate/Other. Table 11 summarizes net income (loss) from our business segments and Corporate/Other for the three and nine months ended September 30, 2026 and 2025. Additional information about operating segment performance and Corporate/Other is presented in “Note 17. Reportable Operating Segments” contained in our unaudited interim consolidated financial statements.

Previous wording

During the quarter ended December 31, 2025, we realigned our internal organizational and management reporting structure. As a result of this change, we reduced our reportable operating segments from three to two. Our reportable segments are now Retail Banking and Commercial Banking. Activities previously reported within the Treasury and Other segment are now included in Corporate/Other, as Treasury exists to support our operating segments. The change in reportable segments reflects how our chief operating decision maker currently evaluates performance and allocates resources. In addition, during the third quarter of 2025, we made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to align loan and deposit balances within the business segment that directly manages them. Specifically, certain loan and deposit balances previously included as part of the Retail Banking and Commercial Banking segments were reclassified among the segments and what is now Corporate/Other. The reallocation of select loan and deposit balances affected net interest income, net interest income after provision for credit losses, provision for income taxes, net income and segment earning assets. We have reported our selected financial information using the new loan and deposit balance alignments and using two reportable operating segments for the three and six months ended June 30, 2026. Prior-period segment information has been recast to conform to the current presentation.

Current wording

During the quarter ended December 31, 2025, we realigned our internal organizational and management reporting structure. As a result of this change, we reduced our reportable operating segments from three to two. Our reportable segments are now Retail Banking and Commercial Banking. Activities previously reported within the Treasury and Other segment are now included in Corporate/Other, as Treasury exists to support our operating segments. The change in reportable segments reflects how our chief operating decision maker currently evaluates performance and allocates resources. We have reported our selected financial information using two reportable operating segments for the three and nine months ended September 30, 2026 and 2025.

Previous wording

Net income for the Retail Banking segment was $128.3 million for the six months ended June 30, 2026, an increase of $5.5 million or 4% as compared to the same period in 2025. The increase in net income for the Retail Banking segment was primarily due to a $9.4 million increase in net interest income, a $3.1 million decrease in the Provision and a $2.8 million increase in noninterest income, partially offset by a $7.4 million increase in the provision for income taxes and a $2.5 million increase in noninterest expense. The increase in net interest income was primarily due to higher deposit spreads and higher loan spreads. The decrease in the Provision allocated to the Retail Banking segment was primarily due to decreases in the provision for commercial and industrial loans, consumer loans and home equity lines, partially offset by increases in the provision for commercial real estate loans and residential mortgage loans. The increase in noninterest income was primarily due to increases in other service charges and fees and service charges on deposit accounts, partially offset by a decrease in trust and investment services income. The increase in the provision for income taxes was primarily due to the allocation of the revaluation of the California deferred tax assets in 2025, in addition to an increase in pretax income. The increase in noninterest expense was primarily due to increases in salaries and employee benefits expense and occupancy expense, partially offset by lower overall expenses that were allocated to the Retail Banking segment.

Current wording

Net income for the Retail Banking segment was $70.2 million for the three months ended September 30, 2026, an increase of $3.7 million or 5% as compared to the same period in 2025. The increase in net income for the Retail Banking segment was primarily due to an $8.5 million decrease in the provision for income taxes, a $4.9 million increase in net interest income and a $2.0 million increase in noninterest income, partially offset by a $7.1 million increase in the Provision and a $4.6 million increase in noninterest expense. The decrease in the provision for income taxes was primarily due to the allocation of the reversal of certain reserves for uncertain tax liabilities due to the execution of a settlement agreement with the California Franchise Tax Board. The increase in net interest income was primarily due to higher deposit spreads. The increase in noninterest income was primarily due to increases in other service charges and fees and service charges on deposit accounts. The increase in the Provision allocated to the Retail Banking segment was primarily due to increases in the provision for commercial real estate loans and construction loans. The increase in noninterest expense was primarily due to increases in operational losses and other charge-offs, salaries and employee benefits expense, occupancy expense and brokers fees.

Previous wording

Net income for the Retail Banking segment was $68.2 million for the three months ended June 30, 2026, an increase of $2.8 million or 4% as compared to the same period in 2025. The increase in net income for the Retail Banking segment was primarily due to a $5.8 million increase in net interest income, a $1.4 million increase in noninterest income, a $1.0 million decrease in noninterest expense and a $0.9 million decrease in the Provision, partially offset by a $6.1 million increase in the provision for income taxes. The increase in net interest income was primarily due to higher deposit spreads and higher loan spreads. The increase in noninterest income was primarily due to increases in other service charges and fees and service charges on deposit accounts. The decrease in noninterest expense was primarily due to lower overall expenses that were allocated to the Retail Banking segment, partially offset by increases in occupancy expense and salaries and employee benefits expense. The decrease in the Provision allocated to the Retail Banking segment was primarily due to decreases in the provision for commercial and industrial loans and residential mortgage loans, partially offset by increases in the provision for consumer loans, constructions loans and commercial real estate loans. The increase in the provision for income taxes was primarily due to the allocation of the revaluation of the California deferred tax assets in 2025.

Current wording

Net income for the Retail Banking segment was $198.6 million for the nine months ended September 30, 2026, an increase of $9.1 million or 5% as compared to the same period in 2025. The increase in net income for the Retail Banking segment was primarily due to a $14.3 million increase in net interest income, a $4.8 million increase in noninterest income and a $1.1 million decrease in the provision for income taxes, partially offset by a $7.1 million increase in noninterest expense and a $4.0 million increase in the Provision. The increase in net interest income was primarily due to higher deposit spreads and higher loan spreads. The increase in noninterest income was primarily due to increases in other service charges and fees and service charges on deposit accounts. The decrease in the provision for income taxes was primarily due to the allocation of the reversal of certain reserves for uncertain tax liabilities due to the execution of a settlement agreement with the California Franchise Tax Board in 2026, partially offset by the allocation of the revaluation of the California deferred tax assets in 2025. The increase in noninterest expense was primarily due to increases in salaries and employee benefits expense, occupancy expense, operational losses and other charge-offs and brokers fees. This was partially offset by lower overall expenses that were allocated to the Retail Banking segment. The increase in the Provision allocated to the Retail Banking segment was primarily due to increases in the provision for commercial real estate loans and construction loans, partially offset by decreases in the provision for consumer loans.

Previous wording

Net income for the Commercial Banking segment was $36.8 million for the three months ended June 30, 2026, an increase of $3.8 million or 11% as compared to the same period in 2025. The increase in net income for the Commercial Banking segment was primarily due to a $2.5 million increase in net interest income, a $2.4 million increase in noninterest income, a $0.9 million decrease in noninterest expense and a $0.8 million decrease in the Provision, partially offset by a $2.8 million increase in the provision for income taxes. The increase in net interest income was primarily due to higher average loan balances and higher loan fees. The increase in noninterest income was primarily due to excise tax refunds received during the three months ended June 30, 2026 and an increase in customer-related interest rate swap fees. The decrease in noninterest expense was primarily due tohigher overall credits that were allocated to the Commercial Banking segment. The decrease in the Provision allocated to the Commercial Banking segment was primarily due to decreases in the provision for commercial and industrial loans and residential mortgage loans, partially offset by increases in the provision for consumer loans, construction loans and commercial real estate loans. The increase in the provision for income taxes was primarily due to the allocation of the revaluation of the California deferred tax assets in 2025.

Current wording

Net income for the Commercial Banking segment was $98.2 million for the nine months ended September 30, 2026, a decrease of $0.2 million as compared to the same period in 2025. The slight decrease in net income for the Commercial Banking segment was primarily due to a $6.8 million increase in the Provision, partially offset by a $3.9 million decrease in the provision for income taxes, a $1.6 increase in net interest income and a $1.1 million increase in noninterest income. The increase in the Provision allocated to the Commercial Banking segment was primarily due to increases in the provision for commercial real estate loans and construction loans, partially offset by decreases in the provision for consumer loans. The decrease in the provision for income taxes was primarily due to the decrease in pretax income for the Commercial Banking segment. The increase in net interest income was primarily due to higher average loan balances, higher loan fees and higher average deposit balances, partially offset by lower deposit spreads. The increase in noninterest income was primarily due to excise tax refunds received during the nine months ended September 30, 2026, partially offset by a decrease in customer-related interest rate swap fees.