Open the filing on EDGARHOPE BANCORP REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2025
Net income of $30.8 million, up 28% year-over-year
LOS ANGELES - October 28, 2025 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its third quarter ended September 30, 2025.
For the three months ended September 30, 2025, the Company recorded net income of $30.8 million, or $0.24 per diluted common share, up 28% from net income of $24.2 million, or $0.20 per diluted share, for the three months ended September 30, 2024, and up from a net loss of $27.9 million, or $(0.22) per diluted common share, for the three months ended June 30, 2025. The second quarter of 2025 reported loss reflected notable items related to a securities portfolio repositioning, the completion of the Territorial Bancorp Inc. (“Territorial”) acquisition on April 2, 2025, and a change to the California state tax apportionment law.
Excluding notable items, net income for the third quarter of 2025 was $31.6 million, or $0.25 per diluted common share, up 26% from $25.2 million year-over-year, and up 29% from $24.5 million for the second quarter of 2025.
“We are pleased to report strong earnings growth for the third quarter of 2025, driven by the momentum that we have been building in our business lines. Net interest income grew a robust 8% quarter-over-quarter, which was our highest linked quarter organic growth in three years,” commented Kevin S. Kim, Chairman, President and Chief Executive Officer. “In addition, positive operating leverage and lower credit costs contributed to the strong earnings growth and improved profitability this quarter.”
“Highlights this quarter included diversified loan growth, lower cost of deposits and improved asset quality with a 10% reduction in criticized loans from June 30, 2025. We have been making sustained investments in talent at Bank of Hope to strengthen our loan production capabilities, and we remain focused on enhancing our deposit mix and reducing our cost of funds. The linked quarter net interest margin expansion of 20 basis points for the third quarter of 2025 was our widest since 2012.”
“Our capital levels are strong, and our liquidity is ample. This quarter reflects progress that we have been making on our strategic priorities to improve our financial performance, laying a strong foundation for the coming years. I want to extend my gratitude to all the bankers at Bank of Hope for their unwavering dedication and commitment to excellence. Their hard work is the driving force behind our continued growth and success, and I am proud of what we are building together as the leading regional bank catering to multicultural customers across the continental United States and Hawaii,” concluded Kim.
Net income excluding notable items is a non-GAAP financial measure. Notable items in the third quarter of 2025 and in the third quarter of 2024 comprised merger-related expenses. Notable items in the second quarter of 2025 comprised a loss on restructuring of investment securities, merger-related items and an impact of California state tax law change. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
2-2-2 NASDAQ: HOPE
Operating Results for the Third Quarter of 2025
Net interest income and net interest margin. Net interest income before provision for credit losses totaled $126.6 million for the third quarter of 2025, an increase of $9.1 million, or 8%, compared with $117.5 million for the second quarter of 2025. Net interest margin for the third quarter of 2025 expanded by 20 basis points to 2.89%, up from 2.69% for the second quarter of 2025.
The quarter-over-quarter increase in net interest income and expansion in net interest margin were primarily driven by average loan growth, higher yields on earning assets, and a lower cost of interest bearing deposits. Quarter-over-quarter, the yield on average investment securities increased 52 basis points to 3.77% for the third quarter of 2025, reflecting a securities portfolio repositioning executed in the second quarter of 2025. For the third quarter of 2025, the yield on average loans was up five basis points sequentially to 5.93% and the cost of average interest bearing deposits decreased eight basis points sequentially to 3.69%.
Noninterest income. For the third quarter of 2025, noninterest income totaled $15.4 million, compared with $(23.0) million for the second quarter of 2025. Noninterest income for the second quarter of 2025 included a net loss on sales of available-for-sale securities of $38.9 million, pre-tax, related to an investment securities portfolio repositioning executed in June 2025. Excluding the net loss on sales of securities, which the Company considered a notable item, noninterest income for the third quarter of 2025 decreased $515 thousand quarter-over-quarter. Growth in deposit service fees, international service fees, loan-related fees, foreign exchange and wire fees was offset by decreases in customer swap fee income and lower net gains on the sale of SBA loans. The Company sold $48.1 million of SBA loans in the third quarter of 2025, compared with $67.4 million in the second quarter of 2025.
Noninterest expense. Noninterest expense for the third quarter of 2025 totaled $96.9 million, down from noninterest expense of $109.5 million for the second quarter of 2025. Excluding notable items, which consisted of merger-related expenses, noninterest expense for the third quarter of 2025 was $95.9 million, up 4% from $92.2 million for the second quarter of 2025. The quarter-over-quarter change in noninterest expense, excluding notable items, was primarily driven by an increase in compensation-related costs, reflecting the Company’s sustained investment in talent to support growth. Revenue growth outpaced expense growth, generating positive operating leverage, and the efficiency ratio, excluding notable items, improved quarter-over-quarter to 67.5% for the third quarter of 2025, compared with 69.1% for the second quarter of 2025.
Income tax provision (benefit) and tax rate. For the third quarter of 2025, the Company recorded a provision for income tax of $5.6 million, compared with an income tax benefit of $2.0 million for the second quarter of 2025. For the second quarter of 2025, tax expense and tax rate included the impact of several notable items: a net loss on sales of securities related to an investment securities repositioning, merger-related items, and a change in California’s state tax apportionment law. For the third quarter of 2025, the reported effective tax rate was 15.4%.
Noninterest income excluding notable items, noninterest expense excluding notable items, and efficiency ratio excluding notable items, are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
3-3-3 NASDAQ: HOPE
Balance Sheet Summary
Total assets. At September 30, 2025, total assets totaled $18.51 billion, compared with $18.55 billion as of June 30, 2025.
Loans. At September 30, 2025, gross loans totaled $14.62 billion, up 1.2%, or 4.8% annualized, from $14.45 billion at June 30, 2025. All major loan segments grew in the third quarter of 2025, led by residential mortgage, which increased 4.6% quarter-over-quarter.
The following table sets forth the loan portfolio composition at September 30, 2025, June 30, 2025, and September 30, 2024:
| (dollars in thousands) (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| Balance | Percentage | Balance | Percentage | Balance | Percentage |
| Commercial real estate (“CRE”) loans | $8,418,797 | 57.6% | $8,385,764 | 58.0% | $8,630,757 | 63.3% |
| Commercial and industrial (“C&I”) loans | 3,736,497 | 25.6% | 3,725,295 | 25.8% | 3,901,368 | 28.6% |
| Residential mortgage and other loans | 2,431,605 | 16.6% | 2,323,728 | 16.1% | 1,085,863 | 7.9% |
| Loans receivable | 14,586,899 | 99.8% | 14,434,787 | 99.9% | 13,617,988 | 99.8% |
| Loans held for sale | 33,118 | 0.2% | 12,051 | 0.1% | 25,714 | 0.2% |
| Gross loans | $14,620,017 | 100.0% | $14,446,838 | 100.0% | $13,643,702 | 100.0% |
Deposits. Total deposits of $15.83 billion at September 30, 2025, decreased 1% from $15.94 billion at June 30, 2025, reflecting a decrease in brokered deposits, partially offset by growth in customer deposit balances. During the third quarter of 2025, brokered deposits decreased $139.5 million, down 18% quarter-over-quarter. Noninterest bearing demand deposits grew 1% quarter-over-quarter.
The following table sets forth the deposit composition at September 30, 2025, June 30, 2025, and September 30, 2024:
| (dollars in thousands) (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| Balance | Percentage | Balance | Percentage | Balance | Percentage |
| Noninterest bearing demand deposits | $3,507,659 | 22.2% | $3,485,502 | 21.9% | $3,722,985 | 25.3% |
| Money market, interest bearing demand, and savings deposits | 5,995,488 | 37.9% | 6,102,999 | 38.3% | 5,013,305 | 34.0% |
| Time deposits | 6,328,115 | 39.9% | 6,354,854 | 39.8% | 5,993,208 | 40.7% |
| Total deposits | $15,831,262 | 100.0% | $15,943,355 | 100.0% | $14,729,498 | 100.0% |
| Gross loan-to-deposit ratio | | 92.3% | | 90.6% | | 92.6% |
Credit Quality and Allowance for Credit Losses
Criticized loans. Criticized loans decreased $41.9 million, or 10%, to $372.9 million at September 30, 2025, down from $414.7 million at June 30, 2025, driven by improvement in C&I criticized loans, which decreased 17% quarter-over-quarter. Total classified loans were down $35.9 million, or 13%, and total special mention loans were down $5.9 million, or 4%, from June 30, 2025. The criticized loans to total loans ratio improved to 2.56% at September 30, 2025, down 31 basis points from 2.87% at June 30, 2025.
4-4-4 NASDAQ: HOPE
The following table sets forth the breakdown of criticized loans at September 30, 2025, June 30, 2025, and September 30, 2024:
| (dollars in thousands) (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| Special mention loans | $131,384 | $137,313 | $184,443 |
| Classified loans | 241,481 | 277,418 | 321,283 |
| Total criticized loans | $372,865 | $414,731 | $505,726 |
| Criticized loans/total loans | 2.56% | 2.87% | 3.71% |
Nonperforming assets. Nonperforming assets totaled $112.2 million, or 0.61% of total assets, at September 30, 2025, compared with $112.9 million, or 0.61% of total assets, at June 30, 2025.
The following table sets forth the components of nonperforming assets at September 30, 2025, June 30, 2025, and September 30, 2024:
| (dollars in thousands) (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| Loans on nonaccrual status | $110,008 | $110,739 | $103,602 |
| Accruing delinquent loans past due 90 days or more | 2,149 | 2,149 | 226 |
| Total nonperforming loans | 112,157 | 112,888 | 103,828 |
| Other real estate owned | - | - | - |
| Total nonperforming assets | $112,157 | $112,888 | $103,828 |
| Nonperforming assets/total assets | 0.61% | 0.61% | 0.60% |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.3 million, $15.3 million and $13.1 million at September 30, 2025, June 30, 2025, and September 30, 2024, respectively.
Net charge offs. The Company recorded net charge-offs of $5.1 million for the third quarter of 2025, equivalent to 0.14%, annualized, of average loans. This compares with net charge-offs of $12.0 million, or 0.33%, annualized, of average loans for the second quarter of 2025. The quarter-over-quarter improvement reflects lower charge-offs in C&I loans.
Allowance for credit losses. The allowance for credit losses totaled $152.5 million at September 30, 2025, compared with $149.5 million at June 30, 2025. The allowance coverage ratio was 1.05% of loans receivable at September 30, 2025, compared with 1.04% at June 30, 2025.
The following table sets forth the allowance for credit losses and the coverage ratios at September 30, 2025, June 30, 2025, and September 30, 2024:
| (dollars in thousands) (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| Allowance for credit losses | $152,509 | $149,505 | $153,270 |
| Allowance for credit losses/loans receivable | 1.05% | 1.04% | 1.13% |
Provision for credit losses. For the third quarter of 2025, the Company recorded provision for credit losses of $8.7 million. This compares with provision for credit losses of $15.0 million for the second quarter of 2025, which included $4.5 million of merger-related provision expenses that the Company considered a notable item. The quarter-over-quarter decrease in the provision for credit losses, excluding notable items, largely reflected lower net charge-offs during the third quarter of 2025.
Provision for credit losses excluding notable items is a non-GAAP financial measure. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
5-5-5 NASDAQ: HOPE
Capital
At September 30, 2025, the Company and the Bank’s strong capital ratios continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. All capital ratios increased quarter-over-quarter from June 30, 2025. The completion of the Territorial acquisition on April 2, 2025, impacted prior year capital ratio comparisons.
The following table sets forth the capital ratios for the Company at September 30, 2025, June 30, 2025, and September 30, 2024:
| (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 | Minimum Guideline for “Well-Capitalized” |
| Common Equity Tier 1 Capital Ratio | 12.12% | 12.06% | 13.07% | 6.50% |
| Tier 1 Capital Ratio | 12.81% | 12.76% | 13.79% | 8.00% |
| Total Capital Ratio | 13.83% | 13.76% | 14.82% | 10.00% |
| Leverage Ratio | 10.85% | 10.57% | 11.61% | 5.00% |
At September 30, 2025, total stockholders’ equity was $2.26 billion, an increase of 1% compared with $2.22 billion at June 30, 2025. Tangible common equity (“TCE”) per share was $13.51 at September 30, 2025, compared with $13.26 at June 30, 2025. The TCE ratio was 9.63% at September 30, 2025, up 20 basis points compared with 9.43% at June 30, 2025.
The following table sets forth the TCE per share and the TCE ratio at September 30, 2025, June 30, 2025, and September 30, 2024. The year-over-year changes between September 30, 2025, and September 30, 2024, primarily reflected the impact of the Territorial acquisition.
| (unaudited) | 9/30/2025 | 6/30/2025 | 9/30/2024 |
| TCE per share | $13.51 | $13.26 | $14.10 |
| TCE ratio | 9.63% | 9.43% | 10.08% |
TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 to 12.
6-6-6 NASDAQ: HOPE
Investor Conference Call
The Company previously announced that it will host an investor conference call on Tuesday, October 28, 2025, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its third quarter ended September 30, 2025. Investors and analysts are invited to access the conference call by dialing 866-235-9917 (domestic) or 412-902-4103 (international) and asking for the “Hope Bancorp Call.” A presentation to accompany the earnings call will be available at the Investor Relations section of Hope Bancorp’s website at www.ir-hopebancorp.com. Other interested parties are invited to listen to a live webcast of the call available at the Investor Relations section of Hope Bancorp’s website. After the live webcast, a replay will remain available at the Investor Relations section of Hope Bancorp’s website for at least one year. A telephonic replay of the call will be available at 877-344-7529 (domestic) or 412-317-0088 (international) for one week through November 4, 2025, replay access code 7734578.
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest income excluding notable items, noninterest expense excluding notable items, provision for credit losses excluding notable items, efficiency ratio excluding notable items, effective tax rate excluding notable items, PPNR, PPNR excluding notable items, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, TCE per share and TCE ratio. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12.
About Hope Bancorp, Inc.
Hope Bancorp, Inc. (NASDAQ: HOPE) is the holding company of Bank of Hope, the only regional Korean American bank in the United States with $18.51 billion in total assets as of September 30, 2025. With the addition of Territorial Savings, a division of Bank of Hope, effective April 2, 2025, the Company became the largest regional bank catering to multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, the Bank provides a full suite of commercial, corporate and consumer loans, deposit and fee-based products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending; treasury management services, foreign currency exchange solutions, interest rate derivative products, and international trade financing, among others. The Bank operates 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Alabama and Georgia under the Bank of Hope banner, and 29 branches in Hawaii under the Territorial Savings banner. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. For additional information, please go to www.bankofhope.com for Bank of Hope and www.tsbhawaii.bank for Territorial Savings, a division of Bank of Hope. By including the foregoing website address links, the Company does not intend to and shall not be deemed to incorporate by reference any material contained or accessible therein.
7-7-7 NASDAQ: HOPE
Forward-Looking Statements
Forward-looking statements notice
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions. With respect to any such forward-looking statements, Hope Bancorp claims the protection provided for in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. Hope Bancorp’s actual results, performance or achievements may differ significantly from the results, performance or achievements expressed or implied in any forward-looking statements. With the consummation of the acquisition of Territorial Bancorp, factors that may cause actual outcomes to differ from what is expressed or forecasted in these forward-looking statements include, among things: difficulties and delays in integrating Hope Bancorp and Territorial Bancorp and achieving anticipated synergies, cost savings and other benefits from the transaction; higher than anticipated transaction costs; and deposit attrition, operating costs, customer loss and business disruption following the acquisition, including difficulties in maintaining relationships with employees and customers, may be greater than expected. Other risks and uncertainties include, but are not limited to: possible renewed deterioration in economic conditions in Hope Bancorp’s areas of operation or elsewhere; interest rate risk associated with volatile interest rates and related asset-liability matching risk; liquidity risks; risk of significant non-earning assets, and net credit losses that could occur, particularly in times of weak economic conditions or times of rising interest rates; the failure of or changes to assumptions and estimates underlying Hope Bancorp’s allowances for credit losses; potential increases in deposit insurance assessments and regulatory risks associated with current and future regulations; the outcome of any legal proceedings that may be instituted against Hope Bancorp; the impact of U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; and risks from natural disasters. For additional information concerning these and other risk factors, see Hope Bancorp’s most recent Annual Report on Form 10-K. Hope Bancorp does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.
Selected Financial Data
Unaudited (dollars in thousands, except share data)
| Assets: | 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change |
| Cash and due from banks | $454,909 | $689,734 | (34)% | $680,857 | (33)% |
| Investment securities | 2,266,034 | 2,268,889 | - % | 2,177,301 | 4% |
| Federal Home Loan Bank (“FHLB”) stock and other investments | 106,411 | 106,752 | - % | 57,158 | 86% |
| Gross loans, including loans held for sale | 14,620,017 | 14,446,838 | 1% | 13,643,702 | 7% |
| Allowance for credit losses | (152,509) | (149,505) | 2% | (153,270) | - % |
| Accrued interest receivable | 53,159 | 53,589 | (1)% | 51,898 | 2% |
| Premises and equipment, net | 69,152 | 69,141 | - % | 51,543 | 34% |
| Goodwill and intangible assets | 524,503 | 525,428 | - % | 467,182 | 12% |
| Other assets | 566,059 | 536,151 | 6% | 377,818 | 50% |
| Total assets | $18,507,735 | $18,547,017 | - % | $17,354,189 | 7% |
| Liabilities: | | | | | |
| Deposits | $15,831,262 | $15,943,355 | (1)% | $14,729,498 | 7% |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 24,878 | 29,752 | (16)% | 100,000 | (75)% |
| Subordinated debentures and convertible notes, net | 110,610 | 110,263 | - % | 109,249 | 1% |
| Accrued interest payable | 74,376 | 72,004 | 3% | 107,017 | (31)% |
| Other liabilities | 210,713 | 167,526 | 26% | 138,640 | 52% |
| Total liabilities | $16,251,839 | $16,322,900 | - % | $15,184,404 | 7% |
| Stockholders’ Equity: | | | | | |
| Common stock, $0.001 par value | $146 | $146 | - % | $138 | 6% |
| Additional paid-in capital | 1,521,669 | 1,520,129 | - % | 1,442,993 | 5% |
| Retained earnings | 1,152,810 | 1,139,913 | 1% | 1,174,100 | (2)% |
| Treasury stock, at cost | (264,667) | (264,667) | - % | (264,667) | - % |
| Accumulated other comprehensive loss, net | (154,062) | (171,404) | 10% | (182,779) | 16% |
| Total stockholders’ equity | 2,255,896 | 2,224,117 | 1% | 2,169,785 | 4% |
| Total liabilities and stockholders’ equity | $18,507,735 | $18,547,017 | - % | $17,354,189 | 7% |
| Common stock shares - authorized | 300,000,000 | 300,000,000 | | 300,000,000 | |
| Common stock shares - outstanding | 128,185,271 | 128,124,458 | | 120,737,908 | |
| Treasury stock shares | 17,382,835 | 17,382,835 | | 17,382,835 | |
Table Page 1
Selected Financial Data
| Three Months Ended | Nine Months Ended |
|---|
| 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change | 9/30/2025 | 9/30/2024 | % change |
|---|
| Interest and fees on loans | $216,859 | $211,441 | 3% | | $210,022 | 3% | $623,261 | $633,331 | (2)% | |
| Interest on investment securities | 21,467 | 17,769 | 21% | | 16,741 | 28% | 55,128 | 51,619 | 7% | |
| Interest on cash and deposits at other banks | 5,273 | 8,783 | (40)% | | 7,507 | (30)% | 19,261 | 39,974 | (52)% | |
| Interest on other investments and FHLB dividends | 1,186 | 1,177 | 1% | | 814 | 46% | 3,471 | 2,435 | 43% | |
| Total interest income | 244,785 | 239,170 | 2% | | 235,084 | 4% | 701,121 | 727,359 | (4)% | |
| Interest on deposits | 115,425 | 118,852 | (3)% | | 127,193 | (9)% | 347,862 | 373,803 | (7)% | |
| Interest on borrowings | 2,718 | 2,785 | (2)% | | 3,082 | (12)% | 8,267 | 27,840 | (70)% | |
| Total interest expense | 118,143 | 121,637 | (3)% | | 130,275 | (9)% | 356,129 | 401,643 | (11)% | |
| Net interest income before provision | 126,642 | 117,533 | 8% | | 104,809 | 21% | 344,992 | 325,716 | 6% | |
| Provision for credit losses | 8,710 | 15,000 | (42)% | | 3,280 | 166% | 28,510 | 7,280 | 292% | |
| Net interest income after provision | 117,932 | 102,533 | 15% | | 101,529 | 16% | 316,482 | 318,436 | (1)% | |
| Service fees on deposit accounts | 3,235 | 3,106 | 4% | | 2,651 | 22% | 9,262 | 7,919 | 17% | |
| Net gains on sales of SBA loans | 2,774 | 3,998 | (31)% | | 2,722 | 2% | 9,903 | 4,702 | 111% | |
| Net (losses) gains on sales of securities available for sale | - | (38,856) | (100)% | | (326) | (100)% | (38,856) | 99 | | N/A |
| Other income and fees | 9,376 | 8,796 | 7% | | 6,792 | 38% | 27,808 | 18,476 | 51% | |
| Total noninterest income (loss) | 15,385 | (22,956) | | N/A | 11,839 | 30% | 8,117 | 31,196 | (74)% | |
| Salaries and employee benefits | 54,910 | 52,834 | 4% | | 44,160 | 24% | 156,204 | 135,844 | 15% | |
| Occupancy | 9,153 | 8,884 | 3% | | 6,940 | 32% | 25,203 | 20,632 | 22% | |
| Furniture and equipment | 7,895 | 7,817 | 1% | | 5,341 | 48% | 21,425 | 16,156 | 33% | |
| Data processing and communications | 4,231 | 3,602 | 17% | | 3,112 | 36% | 10,740 | 9,099 | 18% | |
| Amortization of investments in affordable housing partnerships | 3,216 | 2,430 | 32% | | 2,206 | 46% | 7,607 | 6,623 | 15% | |
| FDIC assessment | 2,942 | 2,488 | 18% | | 2,200 | 34% | 7,932 | 8,129 | (2)% | |
| FDIC special assessment | - | - | - % | | - | - % | - | 691 | (100)% | |
| Earned interest credit | 3,529 | 3,310 | 7% | | 6,869 | (49)% | 9,926 | 18,842 | (47)% | |
| Merger and restructuring related costs | 958 | 17,281 | (94)% | | 1,433 | (33)% | 20,758 | 5,044 | 312% | |
| Other noninterest expense | 10,027 | 10,827 | (7)% | | 9,007 | 11% | 30,400 | 26,034 | 17% | |
| Total noninterest expense | 96,861 | 109,473 | (12)% | | 81,268 | 19% | 290,195 | 247,094 | 17% | |
| Income (loss) before income taxes | 36,456 | (29,896) | | N/A | 32,100 | 14% | 34,404 | 102,538 | (66)% | |
| Income tax provision (benefit) | 5,613 | (2,015) | | N/A | 7,941 | (29)% | 10,346 | 27,245 | (62)% | |
| Net income (loss) | $30,843 | $(27,881) | | N/A | $24,159 | 28% | $24,058 | $75,293 | (68)% | |
| Earnings (loss) per common share - diluted | $0.24 | $(0.22) | | $0.20 | | $0.19 | $0.62 | |
| Weighted average shares outstanding - diluted | 128,593,874 | 128,223,991 | | 121,159,977 | | 126,110,136 | 121,027,793 | |
Table Page 2
Selected Financial Data
Unaudited
| For the Three Months Ended | For the Nine Months Ended |
|---|
| Profitability measures (annualized): | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Return on average assets (“ROA”) | 0.67% | -0.60% | 0.56% | 0.18% | 0.56% |
| ROA excluding notable items | 0.68% | 0.52% | 0.58% | 0.58% | 0.59% |
| Return on average equity (“ROE”) | 5.52% | -5.02% | 4.52% | 1.46% | 4.73% |
| ROE excluding notable items | 5.66% | 4.42% | 4.71% | 4.78% | 4.99% |
| Return on average tangible common equity (“ROTCE”) | 7.22% | -6.58% | 5.78% | 1.89% | 6.07% |
| ROTCE excluding notable items | 7.39% | 5.79% | 6.02% | 6.21% | 6.40% |
| Net interest margin | 2.89% | 2.69% | 2.55% | 2.71% | 2.57% |
| Efficiency ratio (not annualized) | 68.20% | 115.75% | 69.67% | 82.18% | 69.23% |
| Efficiency ratio excluding notable items (not annualized) | 67.52% | 69.09% | 68.44% | 68.74% | 67.62% |
| ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 through 12. |
Table Page 3
Selected Financial Data
| Three Months Ended |
|---|
| 9/30/2025 | 6/30/2025 | 9/30/2024 |
|---|
| | Interest | Annualized | | Interest | Annualized | | Interest | Annualized |
|---|
| Average | Income/ | Average | Average | Income/ | Average | Average | Income/ | Average |
|---|
| Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost |
|---|
| INTEREST EARNING ASSETS: | | | | | | | | | |
| Loans, including loans held for sale | $14,518,721 | $216,859 | 5.93% | $14,423,923 | $211,441 | 5.88% | $13,574,539 | $210,022 | 6.16% |
| Investment securities | 2,256,228 | 21,467 | 3.77% | 2,192,533 | 17,769 | 3.25% | 2,182,847 | 16,741 | 3.05% |
| Interest earning cash and deposits at other banks | 488,992 | 5,273 | 4.28% | 807,979 | 8,783 | 4.36% | 570,754 | 7,507 | 5.23% |
| FHLB stock and other investments | 97,584 | 1,186 | 4.82% | 98,052 | 1,177 | 4.81% | 48,956 | 814 | 6.61% |
| Total interest earning assets | $17,361,525 | $244,785 | 5.59% | $17,522,487 | $239,170 | 5.47% | $16,377,096 | $235,084 | 5.71% |
| INTEREST BEARING LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Money market, interest bearing demand and savings | $6,045,464 | $49,458 | 3.25% | $6,278,578 | $51,884 | 3.31% | $4,963,727 | $50,707 | 4.06% |
| Time deposits | 6,359,578 | 65,967 | 4.12% | 6,353,525 | 66,968 | 4.23% | 6,053,924 | 76,486 | 5.03% |
| Total interest bearing deposits | 12,405,042 | 115,425 | 3.69% | 12,632,103 | 118,852 | 3.77% | 11,017,651 | 127,193 | 4.59% |
| FHLB and FRB borrowings | 27,286 | 273 | 3.97% | 48,671 | 364 | 3.00% | 120,326 | 329 | 1.09% |
| Subordinated debentures and convertible notes | 106,485 | 2,445 | 8.98% | 106,150 | 2,421 | 9.02% | 105,152 | 2,753 | 10.24% |
| Total interest bearing liabilities | $12,538,813 | $118,143 | 3.74% | $12,786,924 | $121,637 | 3.82% | $11,243,129 | $130,275 | 4.61% |
| Noninterest bearing demand deposits | 3,506,559 | | | 3,464,085 | | | 3,704,088 | | |
| Total funding liabilities/cost of funds | $16,045,372 | | 2.92% | $16,251,009 | | 3.00% | $14,947,217 | | 3.47% |
| Net interest income/net interest spread | | $126,642 | 1.85% | | $117,533 | 1.65% | | $104,809 | 1.10% |
| Net interest margin | | | 2.89% | | | 2.69% | | | 2.55% |
| Cost of deposits: | | | | | | | | | |
| Noninterest bearing demand deposits | $3,506,559 | $ - | - % | $3,464,085 | $ - | - % | $3,704,088 | $ - | - % |
| Interest bearing deposits | 12,405,042 | 115,425 | 3.69% | 12,632,103 | 118,852 | 3.77% | 11,017,651 | 127,193 | 4.59% |
| Total deposits | $15,911,601 | $115,425 | 2.88% | $16,096,188 | $118,852 | 2.96% | $14,721,739 | $127,193 | 3.44% |
Table Page 4
Selected Financial Data
| Nine Months Ended |
|---|
| 9/30/2025 | 9/30/2024 |
|---|
| | Interest | Annualized | | Interest | Annualized |
|---|
| Average | Income/ | Average | Average | Income/ | Average |
|---|
| Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost |
|---|
| INTEREST EARNING ASSETS: | | | | | | |
| Loans, including loans held for sale | $14,136,511 | $623,261 | 5.89% | $13,637,335 | $633,331 | 6.20% |
| Investment securities | 2,178,155 | 55,128 | 3.38% | 2,224,972 | 51,619 | 3.10% |
| Interest earning cash and deposits at other banks | 607,549 | 19,261 | 4.24% | 1,004,606 | 39,974 | 5.32% |
| FHLB stock and other investments | 94,272 | 3,471 | 4.92% | 48,520 | 2,435 | 6.70% |
| Total interest earning assets | $17,016,487 | $701,121 | 5.51% | $16,915,433 | $727,359 | 5.74% |
| INTEREST BEARING LIABILITIES: | | | | | | |
| Deposits: | | | | | | |
| Money market, interest bearing demand and savings | $5,927,729 | $151,960 | 3.43% | $4,994,958 | $149,560 | 4.00% |
| Time deposits | 6,131,577 | 195,902 | 4.27% | 5,987,121 | 224,243 | 5.00% |
| Total interest bearing deposits | 12,059,306 | 347,862 | 3.86% | 10,982,079 | 373,803 | 4.55% |
| FHLB and FRB borrowings | 65,441 | 993 | 2.03% | 672,332 | 19,612 | 3.90% |
| Subordinated debentures and convertible notes | 106,153 | 7,274 | 9.04% | 104,824 | 8,228 | 10.31% |
| Total interest bearing liabilities | $12,230,900 | $356,129 | 3.89% | $11,759,235 | $401,643 | 4.56% |
| Noninterest bearing demand deposits | 3,439,051 | | | 3,724,716 | | |
| Total funding liabilities/cost of funds | $15,669,951 | | 3.04% | $15,483,951 | | 3.46% |
| Net interest income/net interest spread | | $344,992 | 1.62% | | $325,716 | 1.18% |
| Net interest margin | | | 2.71% | | | 2.57% |
| Cost of deposits: | | | | | | |
| Noninterest bearing demand deposits | $3,439,051 | $ - | - % | $3,724,716 | $ - | - % |
| Interest bearing deposits | 12,059,306 | 347,862 | 3.86% | 10,982,079 | 373,803 | 4.55% |
| Total deposits | $15,498,357 | $347,862 | 3.00% | $14,706,795 | $373,803 | 3.40% |
Table Page 5
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
| Three Months Ended | Nine Months Ended |
|---|
| AVERAGE BALANCES: | 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change | 9/30/2025 | 9/30/2024 | % change |
| Gross loans, including loans held for sale | $14,518,721 | $14,423,923 | 1% | $13,574,539 | 7% | $14,136,511 | $13,637,335 | 4% |
| Investment securities | 2,256,228 | 2,192,533 | 3% | 2,182,847 | 3% | 2,178,155 | 2,224,972 | (2)% |
| Interest earning cash and deposits at other banks | 488,992 | 807,979 | (39)% | 570,754 | (14)% | 607,549 | 1,004,606 | (40)% |
| Interest earning assets | 17,361,525 | 17,522,487 | (1)% | 16,377,096 | 6% | 17,016,487 | 16,915,433 | 1% |
| Goodwill and intangible assets | 525,022 | 525,048 | - % | 467,419 | 12% | 505,782 | 467,822 | 8% |
| Total assets | 18,545,851 | 18,724,864 | (1)% | 17,369,169 | 7% | 18,123,718 | 17,920,176 | 1% |
| Noninterest bearing demand deposits | 3,506,559 | 3,464,085 | 1% | 3,704,088 | (5)% | 3,439,051 | 3,724,716 | (8)% |
| Interest bearing deposits | 12,405,042 | 12,632,103 | (2)% | 11,017,651 | 13% | 12,059,306 | 10,982,079 | 10% |
| Total deposits | 15,911,601 | 16,096,188 | (1)% | 14,721,739 | 8% | 15,498,357 | 14,706,795 | 5% |
| Interest bearing liabilities | 12,538,813 | 12,786,924 | (2)% | 11,243,129 | 12% | 12,230,900 | 11,759,235 | 4% |
| Stockholders’ equity | 2,234,244 | 2,220,633 | 1% | 2,139,861 | 4% | 2,201,301 | 2,121,169 | 4% |
| LOAN PORTFOLIO COMPOSITION: | 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change | | | |
| Commercial real estate (“CRE”) loans | $8,418,797 | $8,385,764 | - % | $8,630,757 | (2)% | | | |
| Commercial and industrial (“C&I”) loans | 3,736,497 | 3,725,295 | - % | 3,901,368 | (4)% | | | |
| Residential mortgage and other loans | 2,431,605 | 2,323,728 | 5% | 1,085,863 | 124% | | | |
| Loans receivable | 14,586,899 | 14,434,787 | 1% | 13,617,988 | 7% | | | |
| Loans held for sale | 33,118 | 12,051 | 175% | 25,714 | 29% | | | |
| Gross loans | $14,620,017 | $14,446,838 | 1% | $13,643,702 | 7% | | | |
| CRE LOANS BY PROPERTY TYPE: | 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change | | | |
| Multi-tenant retail | $1,612,673 | $1,589,994 | 1% | $1,640,769 | (2)% | | | |
| Industrial warehouses | 1,285,752 | 1,260,991 | 2% | 1,244,891 | 3% | | | |
| Multifamily | 1,219,701 | 1,211,785 | 1% | 1,204,734 | 1% | | | |
| Gas stations and car washes | 1,116,447 | 1,106,007 | 1% | 1,021,537 | 9% | | | |
| Mixed-use facilities | 665,239 | 671,144 | (1)% | 826,045 | (19)% | | | |
| Hotels/motels | 771,089 | 754,449 | 2% | 800,707 | (4)% | | | |
| Single-tenant retail | 629,269 | 647,374 | (3)% | 663,178 | (5)% | | | |
| Office | 330,736 | 340,329 | (3)% | 396,131 | (17)% | | | |
| All other | 787,891 | 803,691 | (2)% | 832,765 | (5)% | | | |
| Total CRE loans | $8,418,797 | $8,385,764 | - % | $8,630,757 | (2)% | | | |
| DEPOSIT COMPOSITION: | 9/30/2025 | 6/30/2025 | % change | 9/30/2024 | % change | | | |
| Noninterest bearing demand deposits | $3,507,659 | $3,485,502 | 1% | $3,722,985 | (6)% | | | |
| Money market, interest bearing demand, and savings | 5,995,488 | 6,102,999 | (2)% | 5,013,305 | 20% | | | |
| Time deposits | 6,328,115 | 6,354,854 | - % | 5,993,208 | 6% | | | |
| Total deposits | $15,831,262 | $15,943,355 | (1)% | $14,729,498 | 7% | | | |
Table Page 6
Selected Financial Data
| CAPITAL & CAPITAL RATIOS: | 9/30/2025 | | 6/30/2025 | | 9/30/2024 | | | | | | | | |
| Total stockholders’ equity | $2,255,896 | | $2,224,117 | | $2,169,785 | | | | | | | | |
| Total capital | $2,125,254 | | $2,092,212 | | $2,143,477 | | | | | | | | |
| Common equity tier 1 ratio | 12.12% | | 12.06% | | 13.07% | | | | | | | | |
| Tier 1 capital ratio | 12.81% | | 12.76% | | 13.79% | | | | | | | | |
| Total capital ratio | 13.83% | | 13.76% | | 14.82% | | | | | | | | |
| Leverage ratio | 10.85% | | 10.57% | | 11.61% | | | | | | | | |
| Total risk weighted assets | $15,368,455 | | $15,206,081 | | $14,466,152 | | | | | | | | |
| Book value per common share | $17.60 | | $17.36 | | $17.97 | | | | | | | | |
| Tangible common equity (“TCE”) per share | $13.51 | | $13.26 | | $14.10 | | | | | | | | |
| TCE ratio | 9.63% | | 9.43% | | 10.08% | | | | | | | | |
| TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
| ALLOWANCE FOR CREDIT LOSSES CHANGES: | Three Months Ended | | Nine Months Ended |
| 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 9/30/2024 | | 9/30/2025 | | 9/30/2024 | |
| Balance at beginning of period | $149,505 | | $147,412 | | $150,527 | | $153,270 | | $156,019 | | $150,527 | | $158,694 |
| Initial allowance for purchased credit deteriorated (“PCD”) loans acquired | - | | 63 | | - | | - | | - | | 63 | | - |
| Provision for credit losses on loans | 8,100 | | 14,000 | | 5,200 | | 10,100 | | 3,000 | | 27,300 | | 8,300 |
| Recoveries | 1,517 | | 2,844 | | 233 | | 704 | | 534 | | 4,594 | | 3,817 |
| Charge offs | (6,613) | | (14,814) | | (8,548) | | (13,547) | | (6,283) | | (29,975) | | (17,541) |
| Balance at end of period | $152,509 | | $149,505 | | $147,412 | | $150,527 | | $153,270 | | $152,509 | | $153,270 |
| 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 9/30/2024 | | | | |
| Allowance for unfunded loan commitments | $3,933 | | $3,323 | | $2,323 | | $2,723 | | $2,823 | | | | |
| Three Months Ended | | Nine Months Ended |
| 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 9/30/2024 | | 9/30/2025 | | 9/30/2024 |
| Provision for credit losses on loans | $8,100 | | $14,000 | | $5,200 | | $10,100 | | $3,000 | | $27,300 | | $8,300 |
| Provision (credit) for unfunded loan commitments | 610 | | 1,000 | | (400) | | (100) | | 280 | | 1,210 | | (1,020) |
| Provision for credit losses | $8,710 | | $15,000 | | $4,800 | | $10,000 | | $3,280 | | $28,510 | | $7,280 |
Table Page 7
Selected Financial Data
| Three Months Ended | Nine Months Ended |
|---|
| NET LOAN CHARGE OFFS (RECOVERIES): | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| CRE loans | $(933) | $(843) | $899 | $156 | $372 | $(877) | $389 |
| C&I loans | 5,978 | 11,829 | 7,384 | 12,607 | 5,287 | 25,191 | 13,259 |
| Residential mortgage and other loans | 51 | 984 | 32 | 80 | 90 | 1,067 | 76 |
| Net loan charge offs | $5,096 | $11,970 | $8,315 | $12,843 | $5,749 | $25,381 | $13,724 |
| Net charge offs/average loans (annualized) | 0.14% | 0.33% | 0.25% | 0.38% | 0.17% | 0.24% | 0.13% |
| NONPERFORMING ASSETS: | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| Loans on nonaccrual status | $110,008 | $110,739 | $83,808 | $90,564 | $103,602 |
| Accruing delinquent loans past due 90 days or more | 2,149 | 2,149 | 98 | 229 | 226 |
| Total nonperforming loans | 112,157 | 112,888 | 83,906 | 90,793 | 103,828 |
| Other real estate owned (“OREO”) | - | - | - | - | - |
| Total nonperforming assets | $112,157 | $112,888 | $83,906 | $90,793 | $103,828 |
| Nonperforming assets/total assets | 0.61% | 0.61% | 0.49% | 0.53% | 0.60% |
| Nonperforming loans/loans receivable | 0.77% | 0.78% | 0.63% | 0.67% | 0.76% |
| Nonaccrual loans/loans receivable | 0.75% | 0.77% | 0.63% | 0.67% | 0.76% |
| Allowance for credit losses/loans receivable | 1.05% | 1.04% | 1.11% | 1.11% | 1.13% |
| Allowance for credit losses/nonperforming loans | 135.98% | 132.44% | 175.69% | 165.79% | 147.62% |
| Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.3 million, $15.3 million, $11.8 million, $12.8 million, and $13.1 million, at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively. |
| NONACCRUAL LOANS BY TYPE: | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| CRE loans | $54,016 | $55,368 | $24,106 | $23,396 | $72,228 |
| C&I loans | 45,494 | 46,945 | 50,544 | 60,807 | 24,963 |
| Residential mortgage and other loans | 10,498 | 8,426 | 9,158 | 6,361 | 6,411 |
| Total nonaccrual loans | $110,008 | $110,739 | $83,808 | $90,564 | $103,602 |
Table Page 8
Selected Financial Data
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| 30 - 59 days past due | $15,786 | $4,909 | $11,927 | $8,681 | $10,746 |
| 60 - 89 days past due | 5,117 | 2,841 | 27,719 | 5,164 | 1,539 |
| Total accruing delinquent loans 30-89 days past due | $20,903 | $7,750 | $39,646 | $13,845 | $12,285 |
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| CRE loans | $14,872 | $4,377 | $4,993 | $3,205 | $816 |
| C&I loans | 3,356 | 1,084 | 27,455 | 1,288 | 9,037 |
| Residential mortgage and other loans | 2,675 | 2,289 | 7,198 | 9,352 | 2,432 |
| Total accruing delinquent loans 30-89 days past due | $20,903 | $7,750 | $39,646 | $13,845 | $12,285 |
| CRITICIZED LOANS: | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 |
| Special mention loans | $131,384 | $137,313 | $184,659 | $179,073 | $184,443 |
| Classified loans | 241,481 | 277,418 | 264,064 | 270,896 | 321,283 |
| Total criticized loans | $372,865 | $414,731 | $448,723 | $449,969 | $505,726 |
Table Page 9
Selected Financial Data
| Reconciliation of GAAP financial measures to non-GAAP financial measures |
| Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. |
| TANGIBLE COMMON EQUITY (“TCE”) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | |
| Total stockholders’ equity | $2,255,896 | $2,224,117 | $2,169,785 | | |
| Goodwill and core deposit intangible assets, net | (524,503) | (525,428) | (467,182) | | |
| TCE | $1,731,393 | $1,698,689 | $1,702,603 | | |
| Total assets | $18,507,735 | $18,547,017 | $17,354,189 | | |
| Goodwill and core deposit intangible assets, net | (524,503) | (525,428) | (467,182) | | |
| Tangible assets | $17,983,232 | $18,021,589 | $16,887,007 | | |
| TCE ratio | 9.63% | 9.43% | 10.08% | | |
| Common shares outstanding | 128,185,271 | 128,124,458 | 120,737,908 | | |
| TCE per share | $13.51 | $13.26 | $14.10 | | |
| Three Months Ended | Nine Months Ended |
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”) | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Average stockholders’ equity | $2,234,244 | $2,220,633 | $2,139,861 | $2,201,301 | $2,121,169 |
| Average goodwill and core deposit intangible assets, net | (525,022) | (525,048) | (467,419) | (505,782) | (467,822) |
| Average TCE | $1,709,222 | $1,695,585 | $1,672,442 | $1,695,519 | $1,653,347 |
| Net income (loss) | $30,843 | $(27,881) | $24,159 | $24,058 | $75,293 |
| ROTCE (annualized) | 7.22% | -6.58% | 5.78% | 1.89% | 6.07% |
| Three Months Ended | Nine Months Ended |
| PROVISION FOR CREDIT LOSSES EXCLUDING NOTABLE ITEMS | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Provision for credit losses | $8,710 | $15,000 | $3,280 | $28,510 | $7,280 |
| Notable items: | | | | | |
| Merger-related provision for credit losses | - | (4,461) | - | (4,461) | - |
| Provision for credit losses excluding notable items | $8,710 | $10,539 | $3,280 | $24,049 | $7,280 |
Table Page 10
Selected Financial Data
| Three Months Ended | Nine Months Ended |
|---|
| PRE-PROVISION NET REVENUE (“PPNR”) | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Net interest income before provision for credit losses | $126,642 | $117,533 | $104,809 | $344,992 | $325,716 |
| Noninterest income | 15,385 | (22,956) | 11,839 | 8,117 | 31,196 |
| Revenue | 142,027 | 94,577 | 116,648 | 353,109 | 356,912 |
| Less: Noninterest expense | 96,861 | 109,473 | 81,268 | 290,195 | 247,094 |
| PPNR | $45,166 | $(14,896) | $35,380 | $62,914 | $109,818 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | $ - | $38,856 | $ - | $38,856 | $ - |
| FDIC special assessment expense | - | - | - | - | 691 |
| Merger and restructuring-related costs | 958 | 17,281 | 1,433 | 20,758 | 5,044 |
| Total notable items included in PPNR | 958 | 56,137 | 1,433 | 59,614 | 5,735 |
| PPNR, excluding notable items | $46,124 | $41,241 | $36,813 | $122,528 | $115,553 |
| Three Months Ended | Nine Months Ended |
| PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Net income (loss) | $30,843 | $(27,881) | $24,159 | $24,058 | $75,293 |
| Notable items: | | | | | |
| Merger-related provision for credit losses | - | 4,461 | - | 4,461 | - |
| Loss on investment portfolio repositioning | - | 38,856 | - | 38,856 | - |
| FDIC special assessment expense | - | - | - | - | 691 |
| Merger and restructuring-related costs | 958 | 17,281 | 1,433 | 20,758 | 5,044 |
| Total notable items included in pre-tax income | 958 | 60,598 | 1,433 | 64,075 | 5,735 |
| Tax effect on notable items in pre-tax income | (208) | (13,064) | (421) | (14,013) | (1,687) |
| Notable impact from California state tax apportionment law change | - | 4,878 | - | 4,878 | - |
| Total notable items, net of tax | 750 | 52,412 | 1,012 | 54,940 | 4,048 |
| Net income excluding notable items | $31,593 | $24,531 | $25,171 | $78,998 | $79,341 |
| Diluted common shares | 128,593,874 | 128,223,991 | 121,159,977 | 126,110,136 | 121,027,793 |
| EPS excluding notable items | $0.25 | $0.19 | $0.21 | $0.63 | $0.66 |
| Average assets | $18,545,851 | $18,724,864 | $17,369,169 | $18,123,718 | $17,920,176 |
| ROA excluding notable items (annualized) | 0.68% | 0.52% | 0.58% | 0.58% | 0.59% |
| Average equity | $2,234,244 | $2,220,633 | $2,139,861 | $2,201,301 | $2,121,169 |
| ROE excluding notable items (annualized) | 5.66% | 4.42% | 4.71% | 4.78% | 4.99% |
| Average TCE | $1,709,222 | $1,695,585 | $1,672,442 | $1,695,519 | $1,653,347 |
| ROTCE excluding notable items (annualized) | 7.39% | 5.79% | 6.02% | 6.21% | 6.40% |
Table Page 11
Selected Financial Data
| Three Months Ended | Nine Months Ended |
|---|
| NONINTEREST INCOME EXCLUDING NOTABLE ITEMS | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Noninterest income (loss) | $15,385 | $(22,956) | $11,839 | $8,117 | $31,196 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | - | 38,856 | - | 38,856 | - |
| Noninterest income excluding notable items | $15,385 | $15,900 | $11,839 | $46,973 | $31,196 |
| Three Months Ended | Nine Months Ended |
| EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Noninterest expense | $96,861 | $109,473 | $81,268 | $290,195 | $247,094 |
| Notable items: | | | | | |
| FDIC special assessment expense | - | - | - | - | (691) |
| Merger and restructuring-related costs | (958) | (17,281) | (1,433) | (20,758) | (5,044) |
| Noninterest expense excluding notable items | $95,903 | $92,192 | $79,835 | $269,437 | $241,359 |
| Revenue | $142,027 | $94,577 | $116,648 | $353,109 | $356,912 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | - | 38,856 | - | 38,856 | - |
| Revenue excluding notable items | $142,027 | $133,433 | $116,648 | $391,965 | $356,912 |
| Efficiency ratio excluding notable items | 67.52% | 69.09% | 68.44% | 68.74% | 67.62% |
| Three Months Ended | Nine Months Ended |
| EFFECTIVE TAX RATE EXCLUDING NOTABLE ITEMS | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 |
| Income (loss) before income taxes | $36,456 | $(29,896) | $32,100 | $34,404 | $102,538 |
| Notable items before tax effect | 958 | 60,598 | 1,433 | 64,075 | 5,735 |
| Income before tax excluding notable items | $37,414 | $30,702 | $33,533 | $98,479 | $108,273 |
| GAAP income tax provision (benefit) | $5,613 | $(2,015) | $7,941 | $10,346 | $27,245 |
| Tax effect on notable items in pre-tax income | 208 | 13,064 | 421 | 14,013 | 1,687 |
| Notable impact from California state tax apportionment law change | - | (4,878) | - | (4,878) | - |
| Income tax provision excluding notable items | $5,821 | $6,171 | $8,362 | $19,481 | $28,932 |
| Effective tax rate excluding notable items | 15.56% | 20.10% | 24.94% | 19.78% | 26.72% |
Table Page 12
Contacts
Julianna Balicka
Executive Vice President & Chief Financial Officer
213-235-3235 julianna.balicka@bankofhope.com
(tables follow)