HANMI FINANCIAL CORP

Previous wording

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three and nine months ended September 30, 2025. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”) and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q for the period ended September 30, 2025 (this “Report”).

Current wording

The following is management’s discussion and analysis of our results of operations and financial condition as of and for the three months ended March 31, 2026. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report on Form 10-K”) and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q for the period ended March 31, 2026 (this “Report”).

Previous wording

Some of the statements contained in this Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial condition and liquidity, asset quality, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Current wording

Some of the statements contained in this Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements in this Report other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial condition and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Previous wording

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, financial condition, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include:

Current wording

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, financial condition, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

Previous wording

general economic and business conditions internationally, nationally and in those areas in which we operate, including potential recessionary conditions;

Current wording

general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;

Previous wording

the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;

Current wording

the imposition of tariffs or other domestic or international governmental policies and any retaliatory responses;

Previous wording

the impact of the current federal government shutdown, including our ability to effect sales of Small Business Administration loans;

Current wording

the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans;

Previous wording

the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial considerations;

Current wording

the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;

Previous wording

our ability to control expenses; and

Current wording

our ability to control expenses;

Previous wording

For additional information concerning risks we face, see “Part II, Item 1A. Risk Factors” in this Report and in the Quarterly Report on Form 10-Q for the period ended June 30, 2025 and “Item 1A. Risk Factors” in Part I of the 2024 Annual Report on Form 10-K. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Current wording

For additional information concerning risks we face, see “Part II, Item 1A. Risk Factors” in this Report and “Item 1A. Risk Factors” in Part I of the 2025 Annual Report on Form 10-K. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Previous wording

We have established various accounting policies in accordance with GAAP in the preparation of our financial statements. Our significant accounting policies are described in the Notes to the consolidated financial statements in our 2024 Annual Report on Form 10-K. We had no significant changes in our accounting policies since the filing of our 2024 Annual Report on Form 10-K.

Current wording

We have established various accounting policies that govern the application of GAAP in the preparation of our financial statements. Our significant accounting policies are described in the Notes to the consolidated financial statements in the 2025 Annual Report on Form 10-K. We had no significant changes in what constituted our accounting policies since the filing of the 2025 Annual Report on Form 10-K.

Previous wording

Certain accounting policies require us to make significant estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities, and we consider these to be critical accounting policies. For a description of these critical accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in our 2024 Annual Report on Form 10-K. Actual results could differ significantly from these estimates and assumptions, which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Company’s Board of Directors.

Current wording

Certain accounting policies require us to make significant estimates and assumptions that have a material impact on the carrying value of certain assets and liabilities, and we consider these to be critical accounting policies. For a description of these critical accounting policies, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in the 2025 Annual Report on Form 10-K. Actual results could differ significantly from these estimates and assumptions, which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Company’s Board of Directors.

Previous wording

Our primary source of revenue is net interest income, which is the difference between interest derived from earning assets, and interest paid on liabilities obtained to fund those assets. Our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities, referred to as volume changes. Net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities, referred to as rate changes. Interest rates charged on loans are affected principally by changes to market interest rates, the demand for loans receivable, the supply of money available for lending purposes, and other competitive factors. Those factors are, in turn, affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the Federal Reserve.

Current wording

Our primary source of revenue is net interest income, which is the difference between interest derived from assets, and interest paid on liabilities obtained to fund those assets. Our net interest income is affected by changes in the level and mix of interest-earning assets and interest-bearing liabilities, referred to as volume changes. Net interest income is also affected by changes in the yields earned on assets and rates paid on liabilities, referred to as rate changes. Interest rates charged on loans are affected principally by changes to market interest rates, the demand for loans, the supply of money available for lending purposes, and other competitive factors. Those factors are, in turn, affected by general economic conditions and other factors beyond our control, such as federal economic policies, the general supply of money in the economy, legislative tax policies, governmental budgetary matters, and the actions of the Federal Reserve.

Previous wording

The average yield on interest-earning assets, on a taxable equivalent basis, increased six basis points to 5.54% for the three months ended September 30, 2025, from 5.48% for the three months ended September 30, 2024. The average yield on loans increased to 6.03% for the three months ended September 30, 2025, from 6.00% for the three months ended September 30, 2024. The average loan yield during the three months ended September 30, 2025 benefited by four basis points from the $0.6 million recovery. The average yield on securities, on a taxable equivalent basis, increased to 2.70% for the three months ended September 30, 2025, from 2.27% for the three months ended September 30, 2024. The increase in the average yield on securities was primarily due to the Company using the proceeds from lower-coupon maturing securities to reinvest into higher-coupon securities.

Current wording

The average yield on interest-earning assets, on a taxable equivalent basis, increased three basis points to 5.48% for the three months ended March 31, 2026, from 5.45% for the three months ended March 31, 2025. The average yield on FHLB stock increased by 11.64% to 20.56% for the three months ended March 31, 2026, from 8.92% for the three months ended March 31, 2025, primarily due to a $0.5 million special dividend received on FHLB stock. The average yield on securities, on a taxable equivalent basis, increased to 2.62% for the three months ended March 31, 2026, from 2.49% for the three months ended March 31, 2025. The average yield on loans decreased to 5.90% for the three months ended March 31, 2026, from 5.95% for the three months ended March 31, 2025.

Previous wording

For the nine months ended September 30, 2025, the Company recorded $12.5 million of credit loss expense, comprised of a $12.5 million provision for loan losses. For the same period in 2024, the Company recorded $3.5 million of credit loss expense, comprised of a $4.0 million provision for loan losses, partially offset by a $0.5 million recovery for off-balance sheet items. The $9.0 million increase in provision for loan losses was primarily the result of a $8.5 million increase in net charge-offs.

Current wording

For the first quarter of 2026, the Company recorded $2.9 million of credit loss expense, comprising a $3.2 million provision for loan losses and a $0.3 million recovery for off-balance sheet items. For the same period in 2025, the Company recorded $2.7 million of credit loss expense, comprising a $2.4 million provision for loan losses and a $0.3 million provision for off-balance sheet items. The $0.8 million increase in the provision for loan losses was primarily due to higher net charge-offs, which were $0.7 million higher in the three months ended March 31, 2026 than in the three months ended March 31, 2025.

Previous wording

During the third quarter of 2025, the Company sold $67.8 million of residential mortgage loans, recognizing a net gain of $1.2 million and sold $32.6 million of SBA loans, recognizing a net gain of $1.9 million. During the third quarter of 2024, the Company sold $20.9 million of residential loans, recognizing a net gain of $0.3 million, and sold $23.0 million of SBA loans, recognizing a net gain of $1.5 million. Trade premiums on SBA loan sales were 6.95% and 8.54% for the three months ended

Current wording

During the first quarter of 2026, the Company sold $31.7 million of residential loans, recognizing a net gain of $0.5 million, and sold $32.5 million of SBA loans, recognizing a net gain of $2.1 million. During the first quarter of 2025, the Company sold $10.0 million of residential loans, recognizing a net gain of $0.2 million, and sold $32.2 million of SBA loans, recognizing a net gain of $2.0 million. Trade premiums on SBA loan sales were 7.88% and 7.82% for the three months ended March 31, 2026 and 2025, respectively. Trade premiums on residential mortgage loan sales remained consistent at 2.50% for the first three months of both 2026 and 2025.

Previous wording

As of September 30, 2025, our securities portfolio, which is all available for sale, consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities, tax-exempt municipal bonds and U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10% of stockholders’ equity as of September 30, 2025 or December 31, 2024.

Current wording

As of March 31, 2026, our securities portfolio consisted of U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities, tax-exempt municipal bonds and U.S. Treasury securities. Most of these securities carry fixed interest rates. Other than holdings of U.S. government agency and sponsored agency obligations, there were no securities of any one issuer exceeding 10% of stockholders’ equity as of March 31, 2026 or December 31, 2025.

Previous wording

Securities decreased $1.1 million to $904.7 million at September 30, 2025 from $905.8 million at December 31, 2024, mainly attributed to $169.5 million in payments and maturities, partially offset by $139.3 million in securities purchases and a decrease in unrealized losses on securities, net of tax, of $22.3 million during the nine months ended September 30, 2025.

Current wording

Securities decreased $44.9 million to $835.7 million at March 31, 2026 from $880.6 million at December 31, 2025, mainly attributed to $76.8 million in payments and maturities as well as a $3.2 million decline in market value , partially offset by $35.7 million in purchases.

Previous wording

The following table summarizes the contractual maturity schedule for securities, at amortized cost, and their cost weighted average yield, which is calculated using amortized cost as the weight, as of September 30, 2025:

Current wording

The following table summarizes the contractual or expected maturity schedule for securities, at amortized cost, and their cost-weighted average yield, as of March 31, 2026:

Previous wording

As of September 30, 2025 and December 31, 2024, loans receivable (excluding loans held for sale), net of deferred loan fees and costs, discounts and allowance for credit losses, were $6.46 billion and $6.18 billion, respectively. The increase of $277.2 million was primarily due to $1.2 billion in new loan production, offset partially by $565.2 million in loan sales and payoffs, and amortization and other reductions of $403.8 million. Loan production consisted of commercial real estate loans of $435.4 million, residential mortgages of $242.0 million, commercial and industrial loans of $307.2 million, equipment financing agreements of $114.6 million and SBA loans of $147.0 million.

Current wording

As of March 31, 2026 and December 31, 2025, loans (excluding loans held for sale), net of deferred loan fees and costs, discounts and the allowance for credit losses, were $6.47 billion and $6.49 billion, respectively. For the three months ended March 31, 2026, there was $377.9 million in new loan production, offset by $263.6 million in loan sales and payoffs, and amortization and other reductions of $132.2 million. Loan production consisted of commercial real estate loans of $131.4 million, residential mortgage loans of $29.1 million, commercial and industrial loans of $134.7 million, equipment financing agreements of $40.7 million and SBA loans of $42.1 million.

Previous wording

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses as of September 30, 2025. In addition, the table shows the distribution of such loans between those with variable interest rates (including floating, adjustable and hybrids) and those with fixed or predetermined interest rates.

Current wording

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses as of March 31, 2026. In addition, the table shows the distribution of such loans between those with floating or variable interest rates and those with fixed or predetermined interest rates.

Previous wording

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with variable interest rates (including floating, adjustable and hybrids), as of September 30, 2025.

Current wording

The table below shows the maturity distribution of outstanding loans, before the allowance for credit losses, with floating or variable interest rates (including floating, adjustable and hybrids), as of March 31, 2026.

Previous wording

As of September 30, 2025, the loan portfolio included the following concentrations of loan types to borrowers in industries that represented greater than 10.0% of loans receivable outstanding:

Current wording

As of March 31, 2026, the loan portfolio included the following concentrations of loan types to borrowers in industries that represented greater than 10.0% of loans outstanding:

Previous wording

Criticized loans include special mention and classified loans. Activity in criticized loans was as follows for the periods indicated:

Current wording

Activity in criticized loans was as follows for the three months ended March 31:

Previous wording

Loans 30 to 89 days past due and still accruing were $11.6 million at September 30, 2025, compared with $18.5 million at December 31, 2024.

Current wording

Loans 30 to 89 days past due and still accruing were $13.3 million at March 31, 2026, compared with $19.9 million at December 31, 2025. There were no loans 90 or more days past due and still accruing at March 31, 2026 or December 31, 2025.

Previous wording

Nonaccrual loans were $19.4 million and $14.3 million as of September 30, 2025 and December 31, 2024, respectively, representing an increase of $5.1 million, or 35.7%. As of September 30, 2025 and December 31, 2024, 1.62% and 1.81% of equipment financing agreements were on nonaccrual status, respectively. At September 30, 2025, there were no loans 90 days or more past due and still accruing interest. At December 31, 2024, all loans 90 days or more past due were classified as nonaccrual.

Current wording

Nonperforming loans were $12.4 million and $18.1 million as of March 31, 2026 and December 31, 2025, respectively, representing a decrease of $5.7 million, or 31.5%. The decrease was primarily due to the previously mentioned $9.7 million payment received on a commercial real estate office loan, originally designated as nonaccrual during the first quarter of 2025. This was partially offset by the downgrades of several smaller loans during the first quarter of 2026. As of March 31, 2026 and December 31, 2025, 1.2% and 1.3% of equipment financing agreements were on nonaccrual status, respectively. At March 31, 2026 and December 31, 2025, there were no loans 90 days or more past due and still accruing interest.

Previous wording

The $19.4 million of nonperforming loans as of September 30, 2025 had individually evaluated allowances of $4.4 million, compared with $14.3 million of nonperforming loans with individually evaluated allowances of $6.2 million as of December 31, 2024.

Current wording

The $12.4 million of nonperforming loans as of March 31, 2026 had specific allowances of $3.2 million, compared to $18.1 million of nonperforming loans with specific allowances of $3.4 million as of December 31, 2025.

Previous wording

Nonperforming assets were $21.4 million at September 30, 2025, or 0.27% of total assets, compared with $14.4 million, or 0.19%, at December 31, 2024. Additionally, not included in nonperforming assets were repossessed personal property assets associated with equipment finance agreements of $0.4 million and $0.6 million at September 30, 2025 and December 31, 2024, respectively.

Current wording

Nonperforming assets were $12.4 million at March 31, 2026, or 0.16% of total assets, compared to $20.1 million, or 0.26%, at December 31, 2025. Additionally, not included in nonperforming assets was repossessed personal property associated with equipment finance agreements of $0.3 million and $0.6 million at March 31, 2026 and December 31, 2025, respectively.

Previous wording

Individually evaluated loans were $19.4 million and $14.3 million as of September 30, 2025 and December 31, 2024, respectively, representing an increase of $5.1 million, or 35.7%. Specific allowances associated with individually evaluated loans decreased $1.8 million to $4.4 million as of September 30, 2025 compared with $6.2 million as of December 31, 2024, due to increased charge-offs, offset by new specific allowances on individually evaluated loans.

Current wording

Individually evaluated loans were $12.4 million and $18.1 million as of March 31, 2026 and December 31, 2025, respectively, representing a decrease of $5.7 million, or 31.5%. Specific allowances associated with individually evaluated loans decreased $0.2 million to $3.2 million as of March 31, 2026, compared with $3.4 million as of December 31, 2025.

Previous wording

No loans were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025.

Current wording

No loans were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2025.

Previous wording

During the three and nine months ended September 30, 2025 and 2024, there were no payment defaults on loans modified within the preceding 12 months.

Current wording

The modified loan above was current at March 31, 2026. The Company has not committed to lend any additional amounts to the borrower included in the table above as of March 31, 2026. During the three months ended March 31, 2026 and 2025, there were no payment defaults on loans modified within the preceding 12 months.

Previous wording

Effective January 1, 2025, the Company changed its methodology for estimating expected credit losses on its loan portfolio. The Company’s estimate of the allowance for credit losses at September 30, 2025 and December 31, 2024 reflected losses expected over the remaining contractual life of assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications.

Current wording

The Company’s estimate of the allowance for credit losses at March 31, 2026 and December 31, 2025 reflected losses expected over the remaining contractual life of assets based on historical, current, and forward-looking information. The contractual term does not consider extensions, renewals or modifications.

Previous wording

Our allowance for credit losses methodology incorporates a variety of risk considerations, both quantitative and qualitative, that management believes is appropriate to absorb lifetime credit losses at each reporting date. Quantitative factors include the general economic forecast in our markets, risk ratings, delinquency trends, collateral values, changes in nonperforming loans, and other factors.

Current wording

Our allowance for credit losses incorporate a variety of risk considerations, both quantitative and qualitative, that management believes is appropriate to absorb lifetime credit losses at each reporting date. Quantitative factors include the general economic forecast in our markets, risk ratings, delinquency trends, collateral values, changes in nonperforming, criticized and classified loans, and other factors.

Previous wording

The following table reflects our allocation of the allowance for credit losses by loan category as well as the amount of loans in each loan category, including related percentages:

Current wording

The following table reflects our allocation of the allowance for credit losses by loan category as well as the amount of loans in each loan category, including related percentages, as of the periods indicated:

Previous wording

The allowance for credit losses was $69.8 million and $70.1 million at September 30, 2025 and December 31, 2024, respectively. The allowance attributed to individually evaluated loans was $4.5 million and $6.2 million as of September 30, 2025 and December 31, 2024, respectively. The allowance attributed to collectively evaluated loans was $65.3 million and $64.0 million as of September 30, 2025 and December 31, 2024, respectively.

Current wording

The allowance for credit losses was $70.5 million and $69.9 million at March 31, 2026 and December 31, 2025, respectively. The allowance attributed to individually evaluated loans was $3.2 million and $3.4 million as of March 31, 2026 and December 31, 2025, respectively. The allowance attributed to collectively evaluated loans was $67.3 million and $66.5 million as of March 31, 2026 and December 31, 2025, respectively.

Previous wording

As of both September 30, 2025 and December 31, 2024, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $2.1 million. The Bank closely monitors the borrower’s repayment capabilities, while funding existing commitments to ensure losses are minimized. Based on management’s evaluation and analysis of portfolio credit quality, prevailing economic conditions and economic forecasts, we believe these allowances were adequate for current expected lifetime losses in the loan portfolio and off-balance sheet exposure as of September 30, 2025.

Current wording

As of March 31, 2026 and December 31, 2025, the allowance for credit losses related to off-balance sheet items, primarily unfunded loan commitments, was $2.1 million and $2.3 million, respectively. The Bank closely monitors each borrower’s repayment capabilities while funding existing commitments to ensure losses are minimized. Based on management’s evaluation and analysis of portfolio credit quality, prevailing economic conditions and economic forecasts, we believe these allowances were adequate for current expected lifetime losses in the loan portfolio and off-balance sheet exposure as of March 31, 2026.

Previous wording

For the three months ended September 30, 2025, gross charge-offs decreased $1.2 million from the same period in 2024. Gross recoveries for the three months ended September 30, 2025 increased $0.2 million from the same period in 2024. Gross charge-offs for the three months ended September 30, 2025 primarily consisted of $2.4 million of equipment financing agreements charge-offs. Gross charge-offs for the three months ended September 30, 2024 primarily consisted of a $1.1 million charge-off on a construction loan, $2.5 million of equipment financing charge-offs and commercial and industrial charge-offs of $0.2 million. Gross recoveries for the three months ended September 30, 2025 primarily consisted of a $2.0 million recovery on a commercial loan and $0.8 million of recoveries on equipment financing agreements. Proceeds received on the commercial loan totaled $2.6 million, representing the $2.0 million recovery and $0.6 million recognized as interest income. Gross recoveries for the three months ended September 30, 2024 primarily consisted of a $1.7 million recovery on a commercial loan, $0.7 million in recoveries on real estate loans and $0.5 million in recoveries on equipment financing agreements.

Current wording

For the three months ended March 31, 2026, gross charge-offs were consistent with the same period in 2025 at $3.2 million. Gross recoveries for the three months ended March 31, 2026 decreased $0.7 million from the same period in 2025. Gross charge-offs for the three months ended March 31, 2026 and 2025 primarily consisted of $2.9 million and $2.8 million of equipment financing agreements charge-offs, respectively. Gross recoveries for the three months ended March 31, 2026 and 2025 primarily consisted of $0.5 million and $0.8 million of recoveries on equipment financing agreements, respectively.

Previous wording

Total deposits were $6.77 billion and $6.44 billion as of September 30, 2025 and December 31, 2024, respectively, representing an increase of $330.9 million, or 5.1%. The increase in deposits was primarily driven by a $160.5 million increase in money market and savings deposits and a $173.4 million increase in time deposits as a result of new commercial accounts and branch openings during the first nine months of 2025. At September 30, 2025, the loan-to-deposit ratio was 96.5% compared with 97.1% at December 31, 2024.

Current wording

Total deposits were $6.80 billion and $6.68 billion as of March 31, 2026 and December 31, 2025, respectively, representing an increase of $123.0 million, or 1.8%. While all deposit types increased, deposit growth was primarily driven by a $72.0 million increase in time deposits, a $31.9 million increase in money market and savings deposits, and a $15.5 million increase in noninterest-bearing demand deposits. At March 31, 2026, the loan-to-deposit ratio was 96.2% compared to 98.3% at December 31, 2025.

Previous wording

As of September 30, 2025, the aggregate amount of uninsured deposit accounts (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $2.98 billion. For time deposits, the aggregate amount exceeding the insurance limit was $758.9 million. For demand money market and savings accounts, the aggregate amount exceeding the insurance limit was $2.22 billion. At September 30, 2025, $1.35 billion of total uninsured deposits were in accounts with balances of $5.0 million or more. As of December 31, 2024, the aggregate amount of uninsured deposits was $2.72 billion. The aggregate amount of uninsured time deposits was $647.3 million. For demand, money market and savings accounts, the aggregate amount of uninsured deposits was $2.07 billion. At December 31, 2024, $1.21 billion of total uninsured deposits were in accounts with balances of $5.0 million or more.

Current wording

As of March 31, 2026, the aggregate amount of uninsured deposits (deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance) was $3.0 billion. The aggregate amount of uninsured time deposits was $809.2 million. Other uninsured deposits, such as demand and money market and savings deposits were $2.19 billion. At March 31, 2026, $1.44 billion of total uninsured deposits were in accounts with balances of $5.0 million or more. As of December 31, 2025, the aggregate amount of uninsured deposits was $2.92 billion. The aggregate amount of uninsured time deposits was $750.8 million. Other uninsured deposits, such as demand, money market and savings deposits, were $2.17 billion. At December 31, 2025, $1.34 billion of total uninsured deposits were in accounts with balances of $5.0 million or more.

Previous wording

The Bank’s wholesale funds have historically consisted of FHLB advances, brokered deposits as well as State of California time deposits. As of September 30, 2025 and December 31, 2024, the Bank had $62.5 million and $262.5 million of FHLB advances, and $88.5 million and $60.7 million of brokered deposits, respectively. The Bank had $150.0 million and $120.0 million of State of California time deposits, as of September 30, 2025 and December 31, 2024, respectively.

Current wording

The Bank’s wholesale funds historically consisted of FHLB advances, brokered deposits as well as State of California time deposits. As of March 31, 2026, the Bank had no outstanding FHLB advances. As of December 31, 2025, the Bank had $150.0 million of FHLB advances. The Bank had $88.5 million of brokered deposits at both March 31, 2026 and December 31, 2025. The Bank also had had $150.0 million of State of California time deposits as of both March 31, 2026 and December 31, 2025.

Previous wording

The weighted-average interest rate of all FHLB advances at September 30, 2025 and December 31, 2024 was 4.56% and 4.75%, respectively.

Current wording

Borrowings mostly take the form of FHLB advances. At March 31, 2026, there were no outstanding FHLB advances. At December 31, 2025, FHLB advances were $150.0 million, all of which were term advances. Funds from deposit growth not used to fund loan production were used to pay off borrowings. The weighted-average interest rate of all FHLB advances at December 31, 2025 was 4.02%. The FHLB maximum amount outstanding at any month end during each of the year-to-date periods ended March 31, 2026 and December 31, 2025 was $90.0 million and $150.0 million, respectively. There were no contractual maturities of FHLB advances greater than twelve months at December 31, 2025.