Community West Bancshares

Previous wording

We are a central California-based bank holding company for a bank subsidiary, Community West Bank (the “Bank”). We offer 31 full-service banking centers covering greater Sacramento in the north, throughout the San Joaquin Valley south to Bakersfield, and west to the Central Coast. We provide traditional commercial banking services to small and medium-sized businesses and individuals in the communities that we serve. On April 1, 2026, the Company completed its previously announced merger of United Security Bancshares pursuant to which USB merged with and into the Company, with the Company continuing as the surviving entity. Refer to Note 2 - Business Combinations for further discussion of this transaction.

Current wording

We are a central California-based bank holding company for a bank subsidiary, Community West Bank (the “Bank”). We offer 34 full-service banking centers covering greater Sacramento in the north, throughout the San Joaquin Valley south to Bakersfield, and west to the Central Coast. We provide traditional commercial banking services to small and medium-sized businesses and individuals in the communities that we serve. On April 1, 2026, the Company completed its previously announced merger of United Security Bancshares pursuant to which USB merged with and into the Company, with the Company continuing as the surviving entity. Refer to Note 2 - Business Combination for further discussion of this transaction.

Previous wording

•Net income during the second quarter decreased to $2.70 million, or $0.10 per diluted common share, compared to net income of $11.49 million and $0.60 per diluted common share, respectively, in the first quarter of 2026. The decrease in net income was due to an increase in non-recurring items: an increase in merger expenses of $7,458,000 and a net realized loss on sales and calls of investment securities of $5,899,000, in addition to an increase to the provision for credit losses of $5,545,000 as compared to the trailing quarter.

Current wording

•Net income during the third quarter increased to $8.07 million, or $0.30 per diluted common share, compared to net income of $2.70 million and $0.10 per diluted common share, respectively, in the second quarter of 2026.

Previous wording

•The Company recorded a provision for credit losses of $5,635,000 during the quarter ended June 30, 2026, as compared to $90,000 during the trailing quarter. The current quarter provision is attributed to a provision for loan losses totaling $5,259,000, a provision for unfunded commitments of $430,000, partially offset by a credit to the reserve for held-to-maturity securities of $54,000. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter. Charge-offs during the quarter were associated with loans previously fully reserved or absorbed within the Day 1 allowance recorded at the time of the Merger.

Current wording

•The Company recorded a provision for credit losses of $578,000 during the quarter ended September 30, 2026, as compared to $5,635,000 during the trailing quarter. The current quarter provision is attributed to a provision for credit losses on loans totaling $588,000, a provision for unfunded commitments of $89,000, partially offset by a credit to the reserve for held-to-maturity securities of $99,000.

Previous wording

•Gross loans increased by $992.7 million or 38.91% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and increased $1.0 billion or 39.47% year-to-date. The fair value of loans acquired from USB was $878.5 million as of April 1, 2026.

Current wording

•Gross loans increased by $19.1 million or 0.54% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and increased $1.0 billion or 40.22% year-to-date. The fair value of loans acquired from USB was $877.8 million as of April 1, 2026.

Previous wording

•Total deposits increased by $977.9 million or 31.13% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and $1.0 billion or 33.09% year-to-date. Total deposits acquired as a result of the Merger was $1.1 billion as of April 1, 2026. Brokered deposits decreased by $73.1 million or 14.30% for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and decreased $80.5 million or 15.53% year-to-date.

Current wording

•Total deposits increased by $101.0 million or 2.45% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and $1.1 billion or 36.35% year-to-date. Total deposits acquired as a result of the Merger were $1.1 billion as of April 1, 2026. Brokered deposits decreased by $107.5 million or 24.53% for the quarter ended September 30, 2026 compared to the quarter ended June 30, 2026 and decreased $112.8 million or 25.45% year-to-date. The decrease in brokered deposits was a result of the Company’s strengthened liquidity position from strong core deposit growth, which reduced the need for brokered deposit funding during the period. Excluding the quarter-to-date decrease of $107.5 million in brokered deposits, total deposits increased by $208.5 million or 5.66% relative to the quarter ended June 30, 2026.

Previous wording

•Total cost of deposits decreased to 1.31% for the quarter ended June 30, 2026 compared to 1.40% for the quarter ended March 31, 2026, and decreased from 1.39% for the quarter ended December 31, 2025.

Current wording

•Total cost of deposits decreased to 1.27% for the quarter ended September 30, 2026 compared to 1.31% for the quarter ended June 30, 2026, and decreased from 1.39% for the quarter ended December 31, 2025.

Previous wording

•Average non-interest bearing demand deposits as a percentage of total average deposits totaled 34.14% and 33.32% for the quarters ended June 30, 2026 and March 31, 2026, respectively.

Current wording

•Average non-interest bearing demand deposits as a percentage of total average deposits totaled 34.82% and 34.14% for the quarters ended September 30, 2026 and June 30, 2026, respectively.

Previous wording

•Net interest margin (calculated on a fully tax equivalent basis) increased to 4.56% for the quarter ended June 30, 2026, from 4.30% for the quarter ended March 31, 2026.

Current wording

•Net interest margin (calculated on a fully tax equivalent basis) increased to 4.65% for the quarter ended September 30, 2026, from 4.56% for the quarter ended June 30, 2026.

Previous wording

•There were $27.9 million of non-performing assets as of June 30, 2026. Net loan charge offs were $5,498,000 for the quarter ended June 30, 2026 and loans delinquent 30 days or more were $34.3 million as of June 30, 2026.

Current wording

•There were $46.5 million of non-performing assets as of September 30, 2026. Net loan charge offs were $1,377,000 for the quarter ended September 30, 2026 and loans delinquent 30 days or more were $60.4 million as of September 30, 2026.

Previous wording

•Capital positions remain strong at June 30, 2026 with a 9.79% Tier 1 Leverage Ratio; a 11.41% Common Equity Tier 1 Ratio; a 11.53% Tier 1 Risk-Based Capital Ratio; and a 13.63% Total Risk-Based Capital Ratio.

Current wording

•Capital positions remain strong at September 30, 2026 with a 9.69% Tier 1 Leverage Ratio; a 11.14% Common Equity Tier 1 Ratio; a 11.26% Tier 1 Risk-Based Capital Ratio; and a 13.28% Total Risk-Based Capital Ratio.

Previous wording

During the three months ended June 30, 2026, the Company reported net income of $2,695,000. Basic and diluted earnings per share for the three months ended June 30, 2026 were $0.10 compared to $0.41 for the three months ended June 30, 2025. During the three months ended June 30, 2026, the Company recorded a $5,635,000 provision for credit losses compared to a $2,613,000 provision for credit losses during the three months ended June 30, 2025. During the quarter ended June 30, 2026, the Company realized a net loss on sales and calls of securities of $5,899,000 compared to a net loss of $15,000 during the prior year quarter ended June 30, 2025 as part of a strategic repositioning of the investment portfolio. The increase in both quarter-to-date and year-to-date non-interest expense categories was driven primarily by increases in merger expenses, salary and employee benefits, and amortization of core deposit intangibles as a result of the Merger.

Current wording

During the three months ended September 30, 2026, the Company reported net income of $8,066,000. Basic and diluted earnings per share for the three months ended September 30, 2026 were $0.30 compared to $0.57 for the three months ended September 30, 2025. During the three months ended September 30, 2026, the Company recorded a $578,000 provision for credit losses compared to a $667,000 provision for credit losses during the three months ended September 30, 2025.

Previous wording

(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $336 and $347 at June 30, 2026 and June 30, 2025, respectively.

Current wording

(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $334 and $338 at September 30, 2026 and September 30, 2025, respectively.

Previous wording

(2) Loan interest income includes loan (costs) fees of $(280) and $217 at June 30, 2026 and June 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $5,163 and $2,987 at June 30, 2026 and June 30, 2025, respectively.

Current wording

(2) Loan interest income includes loan (costs) fees of $344 and $(44) at September 30, 2026 and September 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $4,498 and $2,567 at September 30, 2026 and September 30, 2025, respectively.

Previous wording

(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $673 and $695 at June 30, 2026 and June 30, 2025, respectively.

Current wording

(1) Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $1,007 and $1,034 at September 30, 2026 and September 30, 2025, respectively.

Previous wording

(2) Loan interest income includes loan fees (costs) of $309 and $316 at June 30, 2026 and June 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $7,416 and $6,326 at June 30, 2026 and June 30, 2025, respectively.

Current wording

(2) Loan interest income includes loan fees (costs) of $654 and $272 at September 30, 2026 and September 30, 2025, respectively. Loan interest income includes an accretion on loan marks of $11,914 and $8,866 at September 30, 2026 and September 30, 2025, respectively.

Previous wording

The Company’s net interest margin (fully tax equivalent basis), expressed as a percentage of average earning assets, increased 46 basis points to 4.56% for the second quarter of 2026, from 4.10% for the second quarter of 2025. Average interest earning assets were $4,507,223,000 for the three months ended June 30, 2026 compared to $3,290,580,000 for the three months ended June 30, 2025. The $1,216,643,000 increase in average earning assets was attributed to the $1,115,945,000 or 47.20% increase in average loans, a $25,230,000 increase in interest-earning deposits and $75,468,000 increase in investment securities. For the three months ended June 30, 2026, the effective yield on investment securities including Federal funds sold and interest-earning deposits in other banks increased 10 basis points. The effective yield on loans increased 5 basis points. Average interest bearing liabilities increased 36.84% to $2,885,938,000 for the three months ended June 30, 2026, compared to $2,108,955,000 for the same period in 2025.

Current wording

The Company’s net interest margin (fully tax equivalent basis), expressed as a percentage of average earning assets, increased 45 basis points to 4.65% for the third quarter of 2026, from 4.20% for the third quarter of 2025. Average interest earning assets were $4,577,074,000 for the three months ended September 30, 2026 compared to $3,333,432,000 for the three months ended September 30, 2025. The $1,243,642,000 increase in average earning assets was attributed to the $1,137,589,000 or 47.20% increase in average loans, a $38,379,000 increase in interest-earning deposits and $67,674,000 increase in investment securities. For the three months ended September 30, 2026, the effective yield on investment securities including Federal funds sold and interest-earning deposits in other banks increased 29 basis points. The effective yield on loans increased 8 basis points. Average interest bearing liabilities increased 40.04% to $2,890,118,000 for the three months ended September 30, 2026, compared to $2,063,735,000 for the same period in 2025.

Previous wording

Interest and fee income from loans increased $19,093,000 or 48.29% for the three months ended June 30, 2026 compared to the same period in 2025. The yield on average loans, excluding nonaccrual loans, was 6.76% for the three months ended June 30, 2026 compared to 6.71% for the same period in 2025. The accretion from fair value marks on loans contributed 60 basis points to the loan yield for the three months ended June 30, 2026 compared to 31 basis points for the same period in 2025.

Current wording

Interest and fee income from loans increased $19,779,000 or 48.98% for the three months ended September 30, 2026 compared to the same period in 2025. The yield on average loans, excluding nonaccrual loans, was 6.73% for the three months ended September 30, 2026 compared to 6.65% for the same period in 2025. The accretion from fair value marks on loans contributed 51 basis points to the loan yield for the three months ended September 30, 2026 compared to 28 basis points for the same period in 2025.

Previous wording

Interest income from interest-earning deposits in other banks increased $45,000 in the three months ended June 30, 2026 to $1,099,000 compared to $1,054,000 for the same period in 2025. The yield on average interest-earning deposits decreased 77 basis points to 3.62% for the three month period ended June 30, 2026 compared to 4.39% for the same period in 2025. Average interest-earning deposits for the three month period ended June 30, 2026 increased $25,230,000 or 26.24% to $121,366,000 compared to $96,136,000 for the same period in 2025.

Current wording

Interest income from interest-earning deposits in other banks increased $214,000 in the three months ended September 30, 2026 to $1,363,000 compared to $1,149,000 for the same period in 2025. The yield on average interest-earning deposits decreased 58 basis points to 3.82% for the three month period ended September 30, 2026 compared to 4.40% for the same period in 2025. Average interest-earning deposits for the three month period ended September 30, 2026 increased $38,379,000 or 36.78% to $142,723,000 compared to $104,344,000 for the same period in 2025.

Previous wording

Interest income from total investment securities increased $946,000 in the three months ended June 30, 2026 to $6,727,000 compared to $5,781,000 for the same period in 2025. The yield on average total investment securities increased 18 basis points to 2.97% for the three month period ended June 30, 2026 compared to 2.79% for the same period in 2025. Average total investment securities for the three month period ended June 30, 2026 increased $75,468,000 or 9.09% to $905,456,000 compared to $829,988,000 for the same period in 2025.

Current wording

Interest income from total investment securities increased $1,295,000 in the three months ended September 30, 2026 to $6,988,000 compared to $5,693,000 for the same period in 2025. The yield on average total investment securities increased 37 basis points to 3.15% for the three month period ended September 30, 2026 compared to 2.78% for the same period in 2025. Average total investment securities for the three month period ended September 30, 2026 increased $67,674,000 or 8.26% to $886,490,000 compared to $818,816,000 for the same period in 2025.

Previous wording

Total interest income for the three months ended June 30, 2026 increased $20,094,000 or 43.66% to $66,119,000 compared to $46,025,000 for the three months ended June 30, 2025. The yield on interest earning assets increased 26 basis points to 5.91% on a fully tax equivalent basis for the three months ended June 30, 2026 from 5.65% for the period ended June 30, 2025. The increase was the result of yield changes, increases in interest rates, asset mix changes, and the Merger.

Current wording

Total interest income for the three months ended September 30, 2026 increased $21,292,000 or 45.41% to $68,180,000 compared to $46,888,000 for the three months ended September 30, 2025. The yield on interest earning assets increased 32 basis points to 5.94% on a fully tax equivalent basis for the three months ended September 30, 2026 from 5.62% for the period ended September 30, 2025. The increase was the result of yield changes, increases in interest rates, asset mix changes, and the Merger.

Previous wording

Interest expense on deposits for the three months ended June 30, 2026 and 2025 was $13,732,000 and $10,538,000, respectively. The average interest rate on interest bearing deposits decreased to 2.00% for the three months ended June 30, 2026 compared to 2.18% for the period ended June 30, 2025. Average interest-bearing deposits increased 41.96% or $814,674,000 to $2,755,993,000 for the three months ended June 30, 2026 compared to $1,941,319,000 for the period ended June 30, 2025.

Current wording

Interest expense on deposits for the three months ended September 30, 2026 and 2025 was $13,563,000 and $10,785,000, respectively. The average interest rate on interest bearing deposits decreased to 1.94% for the three months ended September 30, 2026 compared to 2.17% for the period ended September 30, 2025. Average interest-bearing deposits increased 41.02% or $808,717,000 to $2,780,127,000 for the three months ended September 30, 2026 compared to $1,971,410,000 for the period ended September 30, 2025.

Previous wording

Average other borrowed funds were $129,945,000 with an effective rate of 4.54% for the three months ended June 30, 2026 compared to $167,636,000 with an effective rate of 5.15% for the three months ended June 30, 2025. Total interest expense on other borrowed funds was $1,475,000 for the three months ended June 30, 2026 and $2,183,000 for the three months ended June 30, 2025.

Current wording

Average other borrowed funds were $109,991,000 with an effective rate of 4.63% for the three months ended September 30, 2026 compared to $92,325,000 with an effective rate of 4.91% for the three months ended September 30, 2025. Total interest expense on other borrowed funds was $1,273,000 for the three months ended September 30, 2026 and $1,159,000 for the three months ended September 30, 2025.

Previous wording

The cost of interest-bearing liabilities decreased 31 basis points to 2.11% for the three month period ended June 30, 2026 compared to 2.42% for the same period in 2025. The cost of total deposits decreased to 1.31% compared to 1.43% for the three month periods ended June 30, 2026 and 2025, respectively. The decrease in cost of deposits was due to reduction of rates paid for money market and time deposit accounts over the two time periods. Average non-interest bearing demand deposits increased 39.84% to $1,428,442,000 for the three month period ended June 30, 2026 compared to $1,021,513,000 for the same period in 2025. The ratio of average non-interest bearing demand deposits to average total deposits decreased to 34.14% in the three month period ended June 30, 2026 compared to 34.48% for the same period in 2025.

Current wording

The cost of interest-bearing liabilities decreased 26 basis points to 2.04% for the three month period ended September 30, 2026 compared to 2.30% for the same period in 2025. The cost of total deposits decreased to 1.27% compared to 1.39% for the three month periods ended September 30, 2026 and 2025, respectively. The decrease in the cost of deposits is primarily attributed to the addition of the USB deposit portfolio which carried an overall lower interest cost. This decrease was further driven by strong organic deposit growth that allowed the maturation and payoff of brokered deposits during the quarter. Average non-interest bearing demand deposits increased 35.14% to $1,485,004,000 for the three month period ended September 30, 2026 compared to $1,098,889,000 for the same period in 2025. The ratio of average non-interest bearing demand deposits to average total deposits decreased to 34.82% in the three month period ended September 30, 2026 compared to 35.79% for the same period in 2025.

Previous wording

Net interest income before the provision for credit losses for the three months ended June 30, 2026 increased by $17,608,000 or 52.87% to $50,912,000 compared to $33,304,000 for the same period in 2025. The increase was a result of increased interest income on average earnings assets and an increase in interest expense on average interest bearing liabilities.

Current wording

Net interest income before the provision for credit losses for the three months ended September 30, 2026 increased by $18,400,000 or 52.66% to $53,344,000 compared to $34,944,000 for the same period in 2025. The increase was a result of increased interest income on average earning assets and a decrease in interest expense on average interest bearing liabilities.

Previous wording

The Company’s net interest margin (fully tax equivalent basis), expressed as a percentage of average earning assets, increased 38 basis points to 4.45% for the six months ended June 30, 2026, from 4.07% for the same period of 2025. Average interest earning assets were $3,968,596,000 for the six months ended June 30, 2026 compared to $3,277,105,000 for the six months ended June 30, 2025. The $691,491,000 increase in average earning assets was attributed to the $662,010,000 or 28.22% increase in average loans, partially offset by the $3,248,000 decrease in average non-taxable investment securities. For the six months ended June 30, 2026, the effective yield on loans increased 4 basis points. Average interest bearing liabilities increased 20.25% to $2,540,108,000 for the six months ended June 30, 2026, compared to $2,112,318,000 for the same period in 2025.

Current wording

The Company’s net interest margin (fully tax equivalent basis), expressed as a percentage of average earning assets, increased 41 basis points to 4.53% for the nine months ended September 30, 2026, from 4.12% for the same period of 2025. Average interest earning assets were $4,173,689,000 for the nine months ended September 30, 2026 compared to $3,296,089,000 for the nine months ended September 30, 2025. The $877,600,000 increase in average earning assets was attributed to the $822,314,000 or 34.73% increase in average loans, partially offset by the $3,085,000 decrease in average non-taxable investment securities. For the nine months ended September 30, 2026, the effective yield on loans increased 5 basis points. Average interest bearing liabilities increased 26.82% to $2,658,060,000 for the nine months ended September 30, 2026, compared to $2,095,945,000 for the same period in 2025.

Previous wording

Interest and fee income from loans increased $22,573,000 or 28.95% for the six months ended June 30, 2026 compared to the same period in 2025. Net interest income during the first six months of 2026 was impacted by an increase in average total loans of $662,010,000 or 28.22% to $3,008,254,000 compared to $2,346,244,000 for the same period in 2025. The yield on average loans, excluding nonaccrual loans, was 6.74% for the six months ended June 30, 2026 compared to 6.70% for the same period in 2025. The accretion from fair value marks on loans contributed 50 basis points to the loan yield for the six months ended June 30, 2026 compared to 54 basis points for the same period in 2025.

Current wording

Interest and fee income from loans increased $42,352,000 or 35.79% for the nine months ended September 30, 2026 compared to the same period in 2025. Net interest income during the first nine months of 2026 was impacted by an increase in average total loans of $822,314,000 or 34.73% to $3,190,138,000 compared to $2,367,824,000 for the same period in 2025. The yield on average loans, excluding nonaccrual loans, was 6.73% for the nine months ended September 30, 2026 compared to 6.68% for the same period in 2025. The accretion from fair value marks on loans contributed 49 basis points to the loan yield for the nine months ended September 30, 2026 compared to 54 basis points for the same period in 2025.

Previous wording

Total interest income for the six months ended June 30, 2026 increased $22,849,000 or 25.06% to $114,012,000 compared to $91,163,000 for the six months ended June 30, 2025. The yield on interest earning assets increased 18 basis points to 5.83% on a fully tax equivalent basis for the six months ended June 30, 2026 from 5.65% for the six months ended June 30, 2025. The increase to interest income was the result of the acquisition of United Security Bancshares as of April 1, 2026, yield changes, increase in interest rates, and asset mix changes.

Current wording

Total interest income for the nine months ended September 30, 2026 increased $44,140,000 or 31.97% to $182,192,000 compared to $138,052,000 for the nine months ended September 30, 2025. The yield on interest earning assets increased 23 basis points to 5.87% on a fully tax equivalent basis for the nine months ended September 30, 2026 from 5.64% for the nine months ended September 30, 2025. The increase to interest income was the result of the acquisition of United Security Bancshares as of April 1, 2026, yield changes, increase in interest rates, and asset mix changes.

Previous wording

Average other borrowed funds were $110,738,000 with an effective rate of 4.57% for the six months ended June 30, 2026 compared to $186,792,000 with an effective rate of 5.09% for the six months ended June 30, 2025. Total interest expense on other borrowed funds was $2,529,000 for the six months ended June 30, 2026 and $4,751,000 for the six months ended June 30, 2025.

Current wording

Average other borrowed funds were $110,486,000 with an effective rate of 4.59% for the nine months ended September 30, 2026 compared to $154,957,000 with an effective rate of 5.09% for the nine months ended September 30, 2025. Total interest expense on other borrowed funds was $3,802,000 for the nine months ended September 30, 2026 and $5,910,000 for the nine months ended September 30, 2025.

Previous wording

Net interest income before the provision for credit losses for the six months ended June 30, 2026 increased by $21,430,000 or 32.72% to $86,916,000 compared to $65,486,000 for the same period in 2025. The increase was a result of the acquisition of United Security Bancshares as of April 1, 2026, yield changes, asset mix changes, and an increase in average earning assets, offset by an increase in interest expense on average interest bearing liabilities.

Current wording

Net interest income before the provision for credit losses for the nine months ended September 30, 2026 increased by $39,829,000 or 39.66% to $140,260,000 compared to $100,431,000 for the same period in 2025. The increase was a result of the acquisition of United Security Bancshares as of April 1, 2026, yield changes, asset mix changes, and an increase in average earning assets, offset by an increase in interest expense on average interest bearing liabilities.

Previous wording

During the second quarter of 2026, the Company recorded net loan charge-offs of $5,498,000 compared to $13,000 for the same period in 2025. The primary reason for the increase in loan charge-offs during the quarter was due to $2.6 million in charge-offs within an acquired student loan portfolio from the Merger, in which the Company recorded a Day 1 allowance of $9.5 million in anticipation of future charge-offs in this portfolio segment. Additionally, the Company charged off one commercial real estate loan that was individually evaluated and had a specific reserve in prior quarters. The net charge-off ratio reflects annualized net charge-offs to average loans of 0.63% for the quarter ended June 30, 2026, compared to annualized net charge-offs of 0.00% for the quarter ended June 30, 2025. During the quarter ended June 30, 2026, non-accrual loans decreased $3,240,000 to $19,757,000 compared to $22,997,000 at March 31, 2026 and increased $12,802,000 year-to-date to $19,757,000 compared to $6,955,000 at December 31, 2025. The quarter-to-date increase in substandard loans is attributable primarily to the Merger with USB, which contributed $30 million in substandard loan balances. While total dollar balances of substandard loans increased relative to the prior quarter, the ratio of substandard loans to total loans remained consistent with the trailing quarter.

Current wording

During the third quarter of 2026, the Company recorded net loan charge-offs of $1,377,000 compared to net recoveries of $75,000 for the same period in 2025. The primary reason for loan charge-offs during the quarter was for charge-offs within an acquired student loan portfolio from the Merger, in which the Company recorded a Day 1 allowance of $8.4 million in anticipation of future charge-offs in this portfolio segment. The net charge-off ratio reflects annualized net charge-offs to average loans of 0.15% for the quarter ended September 30, 2026, compared to annualized net recoveries of 0.01% for the quarter ended September 30, 2025. During the quarter ended September 30, 2026, non-accrual loans increased $18,516,000 to $38,273,000 compared to $19,757,000 at June 30, 2026 and increased $31,318,000 year-to-date to $38,273,000 compared to $6,955,000 at December 31, 2025. The increase in non-accrual loans was due to two loan relationships that reached 90 days past due during the quarter. These loans are evaluated as collateral dependent loans as of September 30, 2026 and the Company believes the loans are adequately reserved for on an individual basis.

Previous wording

During the quarter ended June 30, 2026, the Company recorded a $5,259,000 provision for loan losses, compared to $2,640,000 for the same period in 2025. The provision for loan losses during the quarter ended June 30, 2026 was primarily due to an update of the Company’s peer group based on its larger asset size following the completion of the Merger and also from organic loan growth during the quarter. In addition to the provision for credit losses on loans for the quarter ended June 30, 2026, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $54,000 as compared to $188,000 in the prior year quarter. The Company recorded a provision for for unfunded loan commitments totaling $430,000 for the quarter ended June 30, 2026 compared to a provision for unfunded loan commitments of $161,000 in the prior year quarter.

Current wording

During the quarter ended September 30, 2026, the Company recorded a $588,000 provision for credit losses on loans, compared to $793,000 for the same period in 2025. In addition to the provision for credit losses on loans for the quarter ended September 30, 2026, the Company recorded a credit to the provision for credit losses on held-to-maturity securities of $99,000 as compared to $62,000 in the prior year quarter. The Company recorded a provision for unfunded loan commitments totaling $89,000 for the quarter ended September 30, 2026 compared to a credit to the provision of unfunded loan commitments of $64,000 in the prior year quarter. The provision for credit losses for the quarter ended September 30, 2026 was primarily in the

Previous wording

The decreases in non-interest income quarter-to-date and year-to-date were primarily due to net realized losses on sales and calls of investment securities as part of the Company’s strategic repositioning of the balance sheet. The investment sales proceeds were reinvested into higher yielding investment securities and will be accretive to income in future quarters. Partially offsetting these losses were increases in service charges, interchange fees, loan placement fees, bank-owned life insurance income, and other income, all of which benefited from the expanded customer and asset base resulting from the Merger with USB completed on April 1, 2026.

Current wording

The increase in non-interest income quarter-to-date was primarily due to an increase in gain on sale of loans and minimal realized losses in the investment portfolio. The decrease in non-interest income year-to-date as compared to the prior year-to-date period was due to the realized loss on sales within the investment portfolio. The investment sales proceeds were reinvested into higher yielding investment securities and will be accretive to income in future quarters. Partially offsetting these losses were increases in service charges, interchange fees, gain on sale of loans, bank-owned life insurance, and loan placement fees, all of which benefited from the expanded customer and asset base resulting from the Merger with USB completed on April 1, 2026.

Previous wording

The Bank currently holds $17,250,000 in stock from the Federal Home Loan Bank (“FHLB”) of San Francisco in conjunction with our borrowing capacity and generally earns quarterly dividends. We received dividends totaling $773,000 for the three months ended June 30, 2026 compared to $478,000 for the three months ended June 30, 2025.

Current wording

The Bank currently holds $17,250,000 in stock from the Federal Home Loan Bank (“FHLB”) of San Francisco in conjunction with our borrowing capacity and generally earns quarterly dividends. We received dividends totaling $478,000 and $1,251,000 for the three and nine months ended September 30, 2026 compared to $240,000 and $718,000 for the three and nine months ended September 30, 2025.

Previous wording

Non-interest expenses increased $16,847,000 or 75.56% to $39,143,000 for the three months ended June 30, 2026, compared to $22,296,000 for the three months ended June 30, 2025. The net increase for the three months ended June 30, 2026 was primarily the result of increases in salaries and employee benefits of $4,058,000, information technology of $867,000, professional services of $201,000, data processing expenses of $363,000, and ATM/Debit card expenses of $280,000, partially offset by a decrease in personnel other of $72,000 and advertising expenses of $56,000. The increase in expenses for the quarter-to-date period was primarily driven by the Merger.

Current wording

Non-interest expenses increased $24,001,000 or 108.27% to $46,168,000 for the three months ended September 30, 2026, compared to $22,167,000 for the three months ended September 30, 2025. The net increase for the three months ended September 30, 2026 was primarily the result of merger expenses of $7,167,000, an expense incurred as a result of a one-time legal settlement of $6,615,000, increases in salaries and employee benefits of $4,142,000, amortization of core deposit intangibles of $1,624,000, occupancy and equipment of $1,025,000, and information technology of $964,000. The legal settlement resolved ongoing litigation related to a former depositor. The increase in expenses for the quarter-to-date period was primarily driven by the Merger.

Previous wording

Non-interest expenses increased $16,364,000 or 35.76% to $62,130,000 for the six months ended June 30, 2026, compared to $45,766,000 for the six months ended June 30, 2025. The net increase for the six month period was primarily the result of increases in merger expenses of $7,758,000, salaries and employee benefits of $3,862,000, occupancy and equipment of $1,037,000, other expenses of $837,000, information technology of $678,000, and regulatory assessments of $243,000. The increase in expenses for the year-to-date period was primarily driven by the Merger.

Current wording

Non-interest expenses increased $40,364,000 or 59.42% to $108,298,000 for the nine months ended September 30, 2026, compared to $67,934,000 for the nine months ended September 30, 2025. The net increase for the nine month period was primarily the result of increases in merger expenses of $14,924,000, salaries and employee benefits of $8,004,000, expense incurred as a result of a one-time settlement of $6,615,000, occupancy and equipment of $2,062,000, other expenses of $2,028,000, information technology of $1,642,000, and regulatory assessments of $461,000. The increase in expenses for the year-to-date period was primarily driven by the Merger.

Previous wording

Salaries and employee benefits increased $3,862,000 or 15.31% to $29,081,000 for the first six months of 2026 compared to $22,090,000 for the three months ended June 30, 2025. The Company added 100 full-time equivalent employees as a result of the Merger, including temporary employees to assist with systems integrations. The year-to-date average full time equivalent employees were 418 for the three months ended June 30, 2026, compared to 342 for the three months ended June 30, 2025.

Current wording

Salaries and employee benefits increased $8,004,000 or 21.21% to $45,748,000 for the first nine months of 2026 compared to $37,744,000 for the nine months ended September 30, 2025. The Company added 100 full-time equivalent employees as a result of the Merger, including temporary employees to assist with systems integrations. The average full time equivalent employees were 391 for the three months ended September 30, 2026, compared to 338 for the three months ended September 30, 2025.

Previous wording

Our effective income tax rate was 35.28% and 27.21% for the three month periods ended June 30, 2026 and 2025. The increase in the effective tax rate was primarily driven by non-deductible expenses incurred in connection with the Merger. Our effective income tax rate was 28.64% and 27.11% for the six month periods ended June 30, 2026 and 2025.

Current wording

Our effective income tax rate was 28.48% and 27.88% for the three month periods ended September 30, 2026 and 2025. The increase in the effective tax rate was primarily driven by non-deductible expenses incurred in connection with the Merger. Our effective income tax rate was 28.59% and 27.42% for the nine month periods ended September 30, 2026 and 2025.

Previous wording

The Company reported an income tax provision of $1,469,000 and $2,927,000 for the three month periods ended June 30, 2026 and 2025, respectively. The Company reported an income tax provision of $5,694,000 and $5,998,000 for the six month periods ended June 30, 2026 and 2025, respectively.

Current wording

The Company reported an income tax provision of $3,212,000 and $4,203,000 for the three month periods ended September 30, 2026 and 2025, respectively. The Company reported an income tax provision of $8,906,000 and $10,201,000 for the nine month periods ended September 30, 2026 and 2025, respectively.

Previous wording

Total assets were $5,034,240,000 as of June 30, 2026, compared to $3,690,317,000 at December 31, 2025, an increase of 36.42% or $1,343,923,000. Total gross loans were $3,543,783,000 at June 30, 2026, compared to $2,540,857,000 at December 31, 2025, an increase of $1,002,926,000 or 39.47%. Total cash and cash equivalents increased 73.84% or $87,853,000 to $206,837,000 at June 30, 2026 compared to $118,984,000 at December 31, 2025. The investment portfolio increased 12.18% or $92,944,000 to $856,268,000 at June 30, 2026 compared to $763,324,000 at December 31, 2025. Total deposits increased 33.09% or $1,024,188,000 to $4,119,462,000 at June 30, 2026, compared to $3,095,274,000 at December 31, 2025. Shareholders’ equity increased 48.40% or $198,232,000 to $607,820,000 at June 30, 2026, compared to $409,588,000 at December 31, 2025. Accrued interest payable and other liabilities was $56,667,000 at June 30, 2026, compared to $42,929,000 at December 31, 2025, an increase of 32.00% or $13,738,000. The increase in shareholders’ equity was driven by the retention of earnings, issuance of common stock, and the completion of the Merger with USB, partially offset by dividends paid. The increases in the various asset categories were all driven by the Merger.

Current wording

Total assets were $5,013,088,000 as of September 30, 2026, compared to $3,690,317,000 at December 31, 2025, an increase of 35.84% or $1,322,771,000. Total gross loans were $3,562,892,000 at September 30, 2026, compared to $2,540,857,000 at December 31, 2025, an increase of $1,022,035,000 or 40.22%. Total cash and cash equivalents increased 49.82% or $59,277,000 to $178,261,000 at September 30, 2026 compared to $118,984,000 at December 31, 2025. The investment portfolio increased 9.29% or $70,917,000 to $834,241,000 at September 30, 2026 compared to $763,324,000 at December 31, 2025. Total deposits increased 36.35% or $1,125,208,000 to $4,220,482,000 at September 30, 2026, compared to $3,095,274,000 at December 31, 2025. Shareholders’ equity increased 47.02% or $192,598,000 to $602,186,000 at September 30, 2026, compared to $409,588,000 at December 31, 2025. Accrued interest payable and other liabilities was $74,508,000 at September 30, 2026, compared to $42,929,000 at December 31, 2025, an increase of 73.56% or $31,579,000. The increase in shareholders’ equity was driven by the retention of earnings, issuance of common stock, and the completion of the Merger with USB, partially offset by dividends paid. The increases in the various asset categories were all driven by the Merger.

Previous wording

Our investment portfolio consists primarily of private label mortgage, U.S. Government sponsored entities and agencies collateralized by residential mortgage backed obligations, asset backed securities (PLMABS), corporate debt securities, and obligations of states and political subdivision securities and are classified as available for sale or held to maturity. As of June 30, 2026, investment securities with a fair value of $477,894,000, or 56% of our investment securities portfolio, were held as collateral for public funds, short and long-term borrowings, treasury, tax, and for other purposes.

Current wording

Our investment portfolio consists primarily of private label mortgage, U.S. Government sponsored entities and agencies collateralized by residential mortgage backed obligations, asset backed securities (PLMABS), corporate debt securities, and obligations of states and political subdivision securities and are classified as available for sale or held to maturity. As of September 30, 2026, investment securities with a fair value of $454,408,000, or 54% of our investment securities portfolio, were held as collateral for public funds, short and long-term borrowings, treasury, tax, and for other purposes.