Open the filing on EDGARHOPE BANCORP REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2025
For the fourth quarter of 2025, net income of $34.5 million, up 12% quarter-over-quarter and up 42% year-over-year
LOS ANGELES - January 27, 2026 - Hope Bancorp, Inc. (the “Company”) (NASDAQ: HOPE), the holding company of Bank of Hope (the “Bank”), today reported unaudited financial results for its fourth quarter and full year ended December 31, 2025.
For the three months ended December 31, 2025, the Company recorded net income of $34.5 million, or $0.27 per diluted common share, up 12% from net income of $30.8 million, or $0.24 per diluted common share, for the three months ended September 30, 2025, and up 42% from net income of $24.3 million, or $0.20 per diluted common share, for the three months ended December 31, 2024.
For the full year ended December 31, 2025, net income totaled $61.6 million, or $0.49 per diluted common share.
Excluding notable items, net income for the full year ended December 31, 2025, totaled $113.3 million, or $0.89 per diluted common share, up 10% from $103.4 million, or $0.85 per diluted common share, for the full year ended December 31, 2024.
“We delivered solid earnings growth in the fourth quarter of 2025, with net income up 12% from the third quarter of 2025, reflecting growth in net interest income, strength in customer fee revenue, and lower provisions for credit losses,” commented Kevin S. Kim, Chairman, President and Chief Executive Officer.
“For the full year 2025, we significantly lowered our cost of deposits, reduced reliance on brokered deposits, enhanced our earning assets mix, added experienced senior leadership as well as front line talent, and strengthened our asset quality with a steady decrease in criticized assets in each quarter of 2025. We also completed the acquisition of Territorial Bancorp in April 2025, which expanded our banking footprint to the strategically attractive market of Hawaii,” continued Kim. “These actions contributed to further optimizing our balance sheet and meaningfully improved our underlying core profitability metrics. We are well positioned to build on this momentum in 2026 and beyond, as we continue making progress towards enhancing our financial performance and earnings growth.”
“I am deeply grateful for the dedication of our colleagues at Bank of Hope. Their steadfast commitment to excellence has propelled our organization forward and strengthened our position as the leading regional bank serving multicultural communities across the continental United States and Hawaii. I am confident that our collective focus and hard work will drive even greater positive outcomes in the years to come,” concluded Kim.
Net income, profitability metrics and earnings per share excluding notable items are non-GAAP financial measures. Notable items in 2025 comprised merger-related expenses, restructuring-related items, a net loss on investment portfolio repositioning, a reversal of an FDIC special assessment, and the impact of a California state tax law change. Notable items in 2024 comprised merger-related expenses, restructuring-related items, and an FDIC special assessment expense. 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.
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Operating Results for the Fourth Quarter of 2025
Net interest income and net interest margin. Net interest income before provision for credit losses totaled $127.4 million for the fourth quarter of 2025, an increase of $0.8 million, or 1%, compared with $126.6 million for the third quarter of 2025. Net interest margin for the fourth quarter of 2025 increased by 1 basis point to 2.90%, up from 2.89% for the third quarter of 2025, and expanded 40 basis points year-over-year, up from 2.50% for the fourth quarter of 2024.
The quarter-over-quarter increases in net interest income and net interest margin were primarily driven by a faster decline in the cost of interest bearing liabilities, relative to the change in the yield on average earning assets. For the fourth quarter of 2025, the cost of interest bearing deposits decreased 17 basis points to 3.52%, reflecting deposit repricing and the impact of federal funds target rate cuts, compared with an 11 basis point decrease in the yield on average earning assets.
Noninterest income. For the fourth quarter of 2025, noninterest income totaled $18.4 million, up $3.0 million, or 19%, compared with $15.4 million for the third quarter of 2025. The increase was driven by a meaningful growth in customer-level swap fees, which increased $2.4 million quarter-over-quarter, as well as higher service fees on deposit accounts, gains on the sale of securities, and increased loan-related fees. The Company sold $46.0 million of Small Business Administration (“SBA”) loans in the fourth quarter of 2025 for a net gain of $2.6 million, compared with $48.1 million in the third quarter of 2025 for a net gain of $2.8 million.
Noninterest expense. Noninterest expense for the fourth quarter of 2025 totaled $99.4 million, up 3% from $96.9 million for the third quarter of 2025. The quarter-over-quarter change in noninterest expense was primarily driven by higher compensation-related costs, which largely reflected the impact of hiring to strengthen the franchise and support revenue generation capabilities. The efficiency ratio was 68.2% for the fourth quarter of 2025, essentially stable compared with the third quarter of 2025 as revenue growth supported the investment spending.
Income tax provision and tax rate. For the fourth quarter of 2025, the Company recorded a provision for income tax of $4.7 million, compared with a provision for income tax of $5.6 million for the third quarter of 2025. For the fourth quarter of 2025, the reported effective tax rate was 11.9%. For the full year ended December 31, 2025, the reported effective tax rate was 20.3%, compared with 25.1% for the full year ended December 31, 2024. The year-over-year decrease in the full year effective tax rate was primarily due to the positive impacts from renewable energy and affordable housing partnership investment tax credits that the Company realized in 2025. The fourth quarter 2025 provision for income tax also included true up entries related to deferred tax asset and liability remeasurement.
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Balance Sheet Summary
Total assets. At December 31, 2025, total assets totaled $18.53 billion, compared with $18.51 billion as of September 30, 2025 and $17.05 billion as of December 31, 2024.
Loans. At December 31, 2025, gross loans totaled $14.79 billion, up 1%, or 4% annualized, from $14.62 billion at September 30, 2025. The quarter-over-quarter increase in loans was spread across the major loan portfolios of commercial real estate, commercial and industrial, and residential mortgage loans. Year-over-year, gross loans were up 8% from $13.63 billion at December 31, 2024, largely reflecting organic residential mortgage growth and the impact of the Territorial Bancorp acquisition.
The following table sets forth the loan portfolio composition at December 31, 2025, September 30, 2025, and December 31, 2024:
| (dollars in thousands) (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| Balance | Percentage | Balance | Percentage | Balance | Percentage |
| Commercial real estate (“CRE”) loans | $8,494,508 | 57.4% | $8,434,919 | 57.7% | $8,527,008 | 62.6% |
| Commercial and industrial (“C&I”) loans | 3,794,788 | 25.7% | 3,752,111 | 25.6% | 3,981,441 | 29.2% |
| Residential mortgage and other loans | 2,498,621 | 16.9% | 2,436,607 | 16.7% | 1,124,314 | 8.2% |
| Gross loans (including held for sale) | $14,787,917 | 100.0% | $14,623,637 | 100.0% | $13,632,763 | 100.0% |
Deposits. Total deposits of $15.60 billion at December 31, 2025, decreased 1% from $15.83 billion at September 30, 2025, and increased 9% from $14.33 billion at December 31, 2024. The quarter-over-quarter change largely reflected typical year-end seasonality in certain commercial client funds. The year-over-year growth largely reflected the impact of the Territorial Bancorp acquisition.
The following table sets forth the deposit composition at December 31, 2025, September 30, 2025, and December 31, 2024:
| (dollars in thousands) (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| Balance | Percentage | Balance | Percentage | Balance | Percentage |
| Noninterest bearing demand deposits | $3,371,759 | 21.6% | $3,507,659 | 22.2% | $3,377,950 | 23.6% |
| Money market, interest bearing demand, and savings deposits | 5,856,373 | 37.5% | 5,995,488 | 37.9% | 5,175,735 | 36.1% |
| Time deposits | 6,375,011 | 40.9% | 6,328,115 | 39.9% | 5,773,804 | 40.3% |
| Total deposits | $15,603,143 | 100.0% | $15,831,262 | 100.0% | $14,327,489 | 100.0% |
| Gross loan-to-deposit ratio | | 94.8% | | 92.4% | | 95.2% |
Credit Quality and Allowance for Credit Losses
Criticized loans. Criticized loans decreased $21.8 million, or 6%, quarter-over-quarter to $351.1 million at December 31, 2025, down from $372.9 million at September 30, 2025, primarily driven by a 48% quarter-over-quarter reduction in C&I special mention loans. Year-over-year, criticized loans were down $98.9 million, or 22%, from $450.0 million at December 31, 2024, reflecting sustained improvement from successful workouts of problem loans and the Company’s proactive approach to credit risk management. The criticized loan ratio improved to 2.39% of total loans receivable at December 31, 2025, down 17 basis points from 2.56% at September 30, 2025, and down 91 basis points from 3.30% at December 31, 2024.
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The following table sets forth the breakdown of criticized loans at December 31, 2025, September 30, 2025, and December 31, 2024:
| (dollars in thousands) (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| Special mention loans | $94,003 | $131,384 | $179,073 |
| Classified loans | 257,113 | 241,483 | 270,896 |
| Total criticized loans | $351,116 | $372,867 | $449,969 |
| Criticized loans/total loans receivable | 2.39% | 2.56% | 3.30% |
Nonperforming assets. Nonperforming assets totaled $136.1 million, or 0.73% of total assets, at December 31, 2025, compared with $112.2 million, or 0.61% of total assets, at September 30, 2025, and $90.8 million, or 0.53% of total assets, at December 31, 2024.
The following table sets forth the components of nonperforming assets at December 31, 2025, September 30, 2025, and December 31, 2024:
| (dollars in thousands) (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| Loans on nonaccrual status | $131,747 | $110,010 | $90,564 |
| Accruing delinquent loans past due 90 days or more | 3,943 | 2,149 | 229 |
| Total nonperforming loans | 135,690 | 112,159 | 90,793 |
| Other real estate owned | 365 | - | - |
| Total nonperforming assets | $136,055 | $112,159 | $90,793 |
| Nonperforming assets/total assets | 0.73% | 0.61% | 0.53% |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.6 million, $15.3 million and $12.8 million at December 31, 2025, September 30, 2025, and December 31, 2024, respectively.
Net charge offs. The Company recorded net charge-offs of $3.6 million for the fourth quarter of 2025, equivalent to 0.10%, annualized, of average loans. This compares with net charge-offs of $5.1 million, or 0.14%, annualized, of average loans for the third quarter of 2025. For the full year 2025, net charge-offs were $29.0 million, or 0.20% of average loans.
Allowance for credit losses. The allowance for credit losses totaled $156.7 million at December 31, 2025, compared with $152.5 million at September 30, 2025, and $150.5 million at December 31, 2024. The allowance coverage ratio was 1.07% of loans receivable at December 31, 2025, compared with 1.05% at September 30, 2025, and 1.11% at December 31, 2024. The year-over-year change in the allowance coverage ratio largely reflects the impact of the Territorial Bancorp acquisition.
The following table sets forth the allowance for credit losses and the coverage ratios at December 31, 2025, September 30, 2025, and December 31, 2024:
| (dollars in thousands) (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| Allowance for credit losses | $156,661 | $152,509 | $150,527 |
| Allowance for credit losses/loans receivable | 1.07% | 1.05% | 1.11% |
Provision for credit losses. For the fourth quarter of 2025, the Company recorded provision for credit losses of $7.2 million, compared with $8.7 million for the third quarter of 2025. The quarter-over-quarter decrease in the provision for credit losses primarily reflected lower net charge-offs in the fourth quarter of 2025, as well as the quarter-over-quarter change in the allowance for unfunded commitments. For the full year 2025, the provision for credit losses was $31.8 million.
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Capital
At December 31, 2025, the Company and the Bank’s capital ratios continued to exceed all regulatory capital requirements generally required to meet the definition of a “well-capitalized” financial institution. The completion of the Territorial Bancorp acquisition on April 2, 2025, impacted prior year capital and capital ratio comparisons.
The following table sets forth the regulatory capital ratios for the Company at December 31, 2025, September 30, 2025, and December 31, 2024:
| (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 | Minimum Guideline for “Well-Capitalized” |
| Common Equity Tier 1 Capital Ratio | 12.27% | 12.14% | 13.06% | 6.50% |
| Tier 1 Capital Ratio | 12.96% | 12.83% | 13.79% | 8.00% |
| Total Capital Ratio | 13.99% | 13.85% | 14.78% | 10.00% |
| Leverage Ratio | 11.05% | 10.86% | 11.83% | 5.00% |
At December 31, 2025, total stockholders’ equity was $2.28 billion, an increase of 1% compared with $2.26 billion at September 30, 2025. Tangible common equity (“TCE”) per share was $13.71 at December 31, 2025, compared with $13.53 at September 30, 2025. The TCE ratio was 9.76% at December 31, 2025, up 12 basis points compared with 9.64% at September 30, 2025.
The following table sets forth the TCE per share and the TCE ratio at December 31, 2025, September 30, 2025, and December 31, 2024.
| (unaudited) | 12/31/2025 | 9/30/2025 | 12/31/2024 |
| TCE per share | $13.71 | $13.53 | $13.81 |
| TCE ratio | 9.76% | 9.64% | 10.05% |
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, January 27, 2026, at 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time to review its unaudited financial results for its fourth quarter and full year ended December 31, 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 February 3, 2026, with the replay access code 3224067.
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 for Bank of Hope, the only regional Korean American bank in the United States, with $18.53 billion in total assets as of December 31, 2025. Following the addition of Territorial Savings as a division of Bank of Hope, the Company became the largest regional bank serving multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, Bank of Hope offers a comprehensive range of commercial, corporate and consumer banking products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and consumer lending, treasury management, foreign exchange solutions, interest rate derivatives, and international trade finance. Bank of Hope 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. Bank of Hope 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 and other documents Hope Bancorp files with the SEC from time to time. 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: | 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change |
| Cash and due from banks | $560,059 | $454,909 | 23% | $458,199 | 22% |
| Investment securities | 2,072,864 | 2,266,034 | (9)% | 2,075,628 | - % |
| Federal Home Loan Bank (“FHLB”) stock and other investments | 60,176 | 106,411 | (43)% | 57,196 | 5% |
| Gross loans, including loans held for sale | 14,787,917 | 14,623,637 | 1% | 13,632,763 | 8% |
| Allowance for credit losses | (156,661) | (152,509) | 3% | (150,527) | 4% |
| Accrued interest receivable | 52,211 | 53,159 | (2)% | 51,169 | 2% |
| Premises and equipment, net | 69,589 | 69,152 | 1% | 51,759 | 34% |
| Goodwill and intangible assets | 525,938 | 524,503 | - % | 466,781 | 13% |
| Other assets | 559,533 | 565,503 | (1)% | 411,040 | 36% |
| Total assets | $18,531,626 | $18,510,799 | - % | $17,054,008 | 9% |
| Liabilities: | | | | | |
| Deposits | $15,603,143 | $15,831,262 | (1)% | $14,327,489 | 9% |
| FHLB and Federal Reserve Bank (“FRB”) borrowings | 284,922 | 24,878 | 1,045% | 239,000 | 19% |
| Subordinated debentures and convertible notes, net | 110,962 | 110,610 | - % | 109,584 | 1% |
| Accrued interest payable | 78,310 | 74,376 | 5% | 93,784 | (16)% |
| Other liabilities | 171,021 | 210,713 | (19)% | 149,646 | 14% |
| Total liabilities | $16,248,358 | $16,251,839 | - % | $14,919,503 | 9% |
| Stockholders’ Equity: | | | | | |
| Common stock, $0.001 par value | $146 | $146 | - % | $138 | 6% |
| Additional paid-in capital | 1,523,702 | 1,521,669 | - % | 1,445,373 | 5% |
| Retained earnings | 1,172,394 | 1,155,874 | 1% | 1,181,533 | (1)% |
| Treasury stock, at cost | (264,667) | (264,667) | - % | (264,667) | - % |
| Accumulated other comprehensive loss, net | (148,307) | (154,062) | 4% | (227,872) | 35% |
| Total stockholders’ equity | 2,283,268 | 2,258,960 | 1% | 2,134,505 | 7% |
| Total liabilities and stockholders’ equity | $18,531,626 | $18,510,799 | - % | $17,054,008 | 9% |
| Common stock shares - authorized | 300,000,000 | 300,000,000 | | 300,000,000 | |
| Common stock shares - outstanding | 128,201,655 | 128,185,271 | | 120,755,658 | |
| Treasury stock shares | 17,382,835 | 17,382,835 | | 17,382,835 | |
Table Page 1
Selected Financial Data
| Three Months Ended | Twelve Months Ended |
|---|
| 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change | 12/31/2025 | 12/31/2024 | % change |
|---|
| Interest and fees on loans | $214,128 | $216,774 | (1)% | $203,828 | 5% | $837,226 | $837,159 | - % | |
| Interest on investment securities | 21,107 | 21,467 | (2)% | 16,930 | 25% | 76,235 | 68,549 | 11% | |
| Interest on cash and deposits at other banks | 4,204 | 5,273 | (20)% | 4,694 | (10)% | 23,465 | 44,668 | (47)% | |
| Interest on other investments and FHLB dividends | 767 | 1,186 | (35)% | 1,169 | (34)% | 4,238 | 3,604 | 18% | |
| Total interest income | 240,206 | 244,700 | (2)% | 226,621 | 6% | 941,164 | 953,980 | (1)% | |
| Interest on deposits | 109,388 | 115,425 | (5)% | 121,645 | (10)% | 457,250 | 495,448 | (8)% | |
| Interest on borrowings | 3,413 | 2,718 | 26% | 2,841 | 20% | 11,680 | 30,681 | (62)% | |
| Total interest expense | 112,801 | 118,143 | (5)% | 124,486 | (9)% | 468,930 | 526,129 | (11)% | |
| Net interest income before provision | 127,405 | 126,557 | 1% | 102,135 | 25% | 472,234 | 427,851 | 10% | |
| Provision for credit losses | 7,200 | 8,710 | (17)% | 10,000 | (28)% | 31,802 | 17,280 | 84% | |
| Net interest income after provision | 120,205 | 117,847 | 2% | 92,135 | 30% | 440,432 | 410,571 | 7% | |
| Service fees on deposit accounts | 3,249 | 3,235 | - % | 2,809 | 16% | 12,511 | 10,728 | 17% | |
| Net gains on sales of SBA loans | 2,566 | 2,774 | (7)% | 3,063 | (16)% | 12,469 | 7,765 | 61% | |
| Net gains (losses) on sales of securities available for sale | 1,168 | - | 100% | 837 | 40% | (37,688) | 936 | | N/A |
| Other income and fees | 11,368 | 9,376 | 21% | 8,166 | 39% | 39,176 | 26,642 | 47% | |
| Total noninterest income | 18,351 | 15,385 | 19% | 15,881 | 16% | 26,468 | 47,077 | (44)% | |
| Salaries and employee benefits | 57,906 | 54,910 | 5% | 42,016 | 38% | 214,110 | 177,860 | 20% | |
| Occupancy | 9,003 | 9,153 | (2)% | 6,837 | 32% | 34,206 | 27,469 | 25% | |
| Furniture and equipment | 8,706 | 8,780 | (1)% | 5,436 | 60% | 32,020 | 23,968 | 34% | |
| Data processing and communications | 3,624 | 3,346 | 8% | 2,961 | 22% | 12,475 | 9,684 | 29% | |
| Amortization of investments in affordable housing partnerships | 2,940 | 3,216 | (9)% | 2,429 | 21% | 10,547 | 9,051 | 17% | |
| FDIC assessment | 3,051 | 2,942 | 4% | 2,684 | 14% | 10,983 | 10,813 | 2% | |
| FDIC special assessment | (691) | - | 100% | - | 100% | (691) | 691 | | N/A |
| Earned interest credit | 3,028 | 3,529 | (14)% | 4,605 | (34)% | 12,954 | 23,447 | (45)% | |
| Merger and restructuring related costs | 776 | 958 | (19)% | 583 | 33% | 21,534 | 5,627 | 283% | |
| Other noninterest expense | 11,085 | 10,027 | 11% | 10,039 | 10% | 41,485 | 36,074 | 15% | |
| Total noninterest expense | 99,428 | 96,861 | 3% | 77,590 | 28% | 389,623 | 324,684 | 20% | |
| Income before income taxes | 39,128 | 36,371 | 8% | 30,426 | 29% | 77,277 | 132,964 | (42)% | |
| Income tax provision | 4,662 | 5,595 | (17)% | 6,089 | (23)% | 15,689 | 33,334 | (53)% | |
| Net income | $34,466 | $30,776 | 12% | $24,337 | 42% | $61,588 | $99,630 | (38)% | |
| Earnings per common share - diluted | $0.27 | $0.24 | | $0.20 | | $0.49 | $0.82 | |
| Weighted average shares outstanding - diluted | 128,769,564 | 128,593,874 | | 121,401,285 | | 126,774,552 | 121,108,594 | |
Table Page 2
Selected Financial Data
Unaudited
| For the Three Months Ended | For the Twelve Months Ended |
|---|
| Profitability measures (annualized): | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Earnings per common share - diluted (not annualized) | $0.27 | $0.24 | $0.20 | $0.49 | $0.82 |
| Earnings per common share - diluted excluding notable items (not annualized) | $0.27 | $0.25 | $0.20 | $0.89 | $0.85 |
| Return on average assets (“ROA”) | 0.74% | 0.66% | 0.57% | 0.34% | 0.56% |
| ROA excluding notable items | 0.74% | 0.68% | 0.56% | 0.62% | 0.58% |
| Return on average equity (“ROE”) | 6.06% | 5.50% | 4.51% | 2.77% | 4.68% |
| ROE excluding notable items | 6.06% | 5.64% | 4.46% | 5.10% | 4.85% |
| Return on average tangible common equity (“ROTCE”) | 7.87% | 7.19% | 5.76% | 3.60% | 5.99% |
| ROTCE excluding notable items | 7.88% | 7.36% | 5.69% | 6.62% | 6.22% |
| Net interest margin | 2.90% | 2.89% | 2.50% | 2.76% | 2.55% |
| Efficiency ratio (not annualized) | 68.22% | 68.24% | 65.75% | 78.13% | 68.36% |
| Efficiency ratio excluding notable items (not annualized) | 68.16% | 67.56% | 65.81% | 68.60% | 67.18% |
| Earnings per common share - diluted excluding notable items, 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 |
|---|
| 12/31/2025 | 9/30/2025 | 12/31/2024 |
|---|
| | 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 | $14,646,767 | $214,128 | 5.80% | $14,522,425 | $216,774 | 5.92% | $13,626,965 | $203,828 | 5.95% |
| Investment securities | 2,261,726 | 21,107 | 3.70% | 2,256,228 | 21,467 | 3.77% | 2,177,613 | 16,930 | 3.09% |
| Interest earning cash and deposits at other banks | 433,029 | 4,204 | 3.85% | 488,992 | 5,273 | 4.28% | 416,467 | 4,694 | 4.48% |
| FHLB stock and other investments | 63,961 | 767 | 4.76% | 97,584 | 1,186 | 4.82% | 49,388 | 1,169 | 9.42% |
| Total interest earning assets | $17,405,483 | $240,206 | 5.48% | $17,365,229 | $244,700 | 5.59% | $16,270,433 | $226,621 | 5.54% |
| INTEREST BEARING LIABILITIES: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Money market, interest bearing demand and savings | $6,023,423 | $45,901 | 3.02% | $6,045,464 | $49,458 | 3.25% | $5,187,715 | $50,510 | 3.87% |
| Time deposits | 6,310,036 | 63,487 | 3.99% | 6,359,578 | 65,967 | 4.12% | 5,856,439 | 71,135 | 4.83% |
| Total interest bearing deposits | 12,333,459 | 109,388 | 3.52% | 12,405,042 | 115,425 | 3.69% | 11,044,154 | 121,645 | 4.38% |
| FHLB and FRB borrowings | 122,986 | 1,063 | 3.43% | 27,286 | 273 | 3.97% | 113,533 | 248 | 0.87% |
| Subordinated debentures and convertible notes | 106,835 | 2,350 | 8.61% | 106,485 | 2,445 | 8.98% | 105,482 | 2,593 | 9.62% |
| Total interest bearing liabilities | $12,563,280 | $112,801 | 3.56% | $12,538,813 | $118,143 | 3.74% | $11,263,169 | $124,486 | 4.40% |
| Noninterest bearing demand deposits | 3,474,131 | | | 3,506,559 | | | 3,546,613 | | |
| Total funding liabilities/cost of funds | $16,037,411 | | 2.79% | $16,045,372 | | 2.92% | $14,809,782 | | 3.34% |
| Net interest income/net interest spread | | $127,405 | 1.92% | | $126,557 | 1.85% | | $102,135 | 1.14% |
| Net interest margin | | | 2.90% | | | 2.89% | | | 2.50% |
| Cost of deposits: | | | | | | | | | |
| Noninterest bearing demand deposits | $3,474,131 | $ - | - % | $3,506,559 | $ - | - % | $3,546,613 | $ - | - % |
| Interest bearing deposits | 12,333,459 | 109,388 | 3.52% | 12,405,042 | 115,425 | 3.69% | 11,044,154 | 121,645 | 4.38% |
| Total deposits | $15,807,590 | $109,388 | 2.75% | $15,911,601 | $115,425 | 2.88% | $14,590,767 | $121,645 | 3.32% |
Table Page 4
Selected Financial Data
| Twelve Months Ended |
|---|
| 12/31/2025 | 12/31/2024 |
|---|
| | 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 | $14,267,020 | $837,226 | 5.87% | $13,634,728 | $837,159 | 6.14% |
| Investment securities | 2,199,219 | 76,235 | 3.47% | 2,213,068 | 68,549 | 3.10% |
| Interest earning cash and deposits at other banks | 563,560 | 23,465 | 4.16% | 856,768 | 44,668 | 5.21% |
| FHLB stock and other investments | 86,632 | 4,238 | 4.89% | 48,738 | 3,604 | 7.39% |
| Total interest earning assets | $17,116,431 | $941,164 | 5.50% | $16,753,302 | $953,980 | 5.69% |
| INTEREST BEARING LIABILITIES: | | | | | | |
| Deposits: | | | | | | |
| Money market, interest bearing demand and savings | $5,951,849 | $197,861 | 3.32% | $5,043,411 | $200,070 | 3.97% |
| Time deposits | 6,176,559 | 259,389 | 4.20% | 5,954,272 | 295,378 | 4.96% |
| Total interest bearing deposits | 12,128,408 | 457,250 | 3.77% | 10,997,683 | 495,448 | 4.51% |
| FHLB and FRB borrowings | 79,945 | 2,056 | 2.57% | 531,869 | 19,860 | 3.73% |
| Subordinated debentures and convertible notes | 106,324 | 9,624 | 8.93% | 104,989 | 10,821 | 10.14% |
| Total interest bearing liabilities | $12,314,677 | $468,930 | 3.81% | $11,634,541 | $526,129 | 4.52% |
| Noninterest bearing demand deposits | 3,447,893 | | | 3,679,947 | | |
| Total funding liabilities/cost of funds | $15,762,570 | | 2.97% | $15,314,488 | | 3.44% |
| Net interest income/net interest spread | | $472,234 | 1.69% | | $427,851 | 1.17% |
| Net interest margin | | | 2.76% | | | 2.55% |
| Cost of deposits: | | | | | | |
| Noninterest bearing demand deposits | $3,447,893 | $ - | - % | $3,679,947 | $ - | - % |
| Interest bearing deposits | 12,128,408 | 457,250 | 3.77% | 10,997,683 | 495,448 | 4.51% |
| Total deposits | $15,576,301 | $457,250 | 2.94% | $14,677,630 | $495,448 | 3.38% |
Table Page 5
Selected Financial Data
Unaudited (dollars in thousands, except per share data)
| Three Months Ended | Twelve Months Ended |
|---|
| AVERAGE BALANCES: | 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change | 12/31/2025 | 12/31/2024 | % change |
| Gross loans, including loans held for sale | $14,646,767 | $14,522,425 | 1% | $13,626,965 | 7% | $14,267,020 | $13,634,728 | 5% |
| Investment securities | 2,261,726 | 2,256,228 | - % | 2,177,613 | 4% | 2,199,219 | 2,213,068 | (1)% |
| Interest earning cash and deposits at other banks | 433,029 | 488,992 | (11)% | 416,467 | 4% | 563,560 | 856,768 | (34)% |
| Interest earning assets | 17,405,483 | 17,365,229 | - % | 16,270,433 | 7% | 17,116,431 | 16,753,302 | 2% |
| Goodwill and intangible assets | 524,118 | 525,022 | - % | 467,021 | 12% | 510,404 | 467,620 | 9% |
| Total assets | 18,595,446 | 18,548,982 | - % | 17,228,881 | 8% | 18,244,370 | 17,746,408 | 3% |
| Noninterest bearing demand deposits | 3,474,131 | 3,506,559 | (1)% | 3,546,613 | (2)% | 3,447,893 | 3,679,947 | (6)% |
| Interest bearing deposits | 12,333,459 | 12,405,042 | (1)% | 11,044,154 | 12% | 12,128,408 | 10,997,683 | 10% |
| Total deposits | 15,807,590 | 15,911,601 | (1)% | 14,590,767 | 8% | 15,576,301 | 14,677,630 | 6% |
| Interest bearing liabilities | 12,563,280 | 12,538,813 | - % | 11,263,169 | 12% | 12,314,677 | 11,634,541 | 6% |
| Stockholders’ equity | 2,275,285 | 2,237,375 | 2% | 2,156,858 | 5% | 2,221,699 | 2,130,140 | 4% |
| LOAN PORTFOLIO: | 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change | | | |
| Loans receivable (held for investment) | $14,701,012 | $14,590,519 | 1% | $13,618,272 | 8% | | | |
| Loans held for sale | 86,905 | 33,118 | 162% | 14,491 | 500% | | | |
| Gross loans | $14,787,917 | $14,623,637 | 1% | $13,632,763 | 8% | | | |
| CRE LOANS HELD FOR INVESTMENT BY PROPERTY TYPE: | 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change | | | |
| Multi-tenant retail | $1,618,715 | $1,612,673 | - % | $1,619,505 | - % | | | |
| Industrial warehouses | 1,258,703 | 1,285,752 | (2)% | 1,264,703 | - % | | | |
| Multifamily | 1,191,145 | 1,219,701 | (2)% | 1,208,494 | (1)% | | | |
| Gas stations and car washes | 1,176,491 | 1,116,447 | 5% | 1,027,502 | 15% | | | |
| Mixed-use facilities | 691,821 | 665,239 | 4% | 771,695 | (10)% | | | |
| Hotels/motels | 821,845 | 771,089 | 7% | 769,635 | 7% | | | |
| Single-tenant retail | 658,440 | 629,269 | 5% | 659,993 | - % | | | |
| Office | 331,603 | 330,736 | - % | 394,431 | (16)% | | | |
| All other | 745,745 | 787,888 | (5)% | 811,050 | (8)% | | | |
| Total CRE loans | $8,494,508 | $8,418,794 | 1% | $8,527,008 | - % | | | |
| DEPOSIT COMPOSITION: | 12/31/2025 | 9/30/2025 | % change | 12/31/2024 | % change | | | |
| Noninterest bearing demand deposits | $3,371,759 | $3,507,659 | (4)% | $3,377,950 | - % | | | |
| Money market, interest bearing demand, and savings | 5,856,373 | 5,995,488 | (2)% | 5,175,735 | 13% | | | |
| Time deposits | 6,375,011 | 6,328,115 | 1% | 5,773,804 | 10% | | | |
| Total deposits | $15,603,143 | $15,831,262 | (1)% | $14,327,489 | 9% | | | |
Table Page 6
Selected Financial Data
| CAPITAL & CAPITAL RATIOS: | 12/31/2025 | | 9/30/2025 | | 12/31/2024 | | | | | | | | |
| Total stockholders’ equity | $2,283,268 | | $2,258,960 | | $2,134,505 | | | | | | | | |
| Total capital | $2,171,256 | | $2,128,319 | | $2,150,810 | | | | | | | | |
| Common equity tier 1 ratio | 12.27% | | 12.14% | | 13.06% | | | | | | | | |
| Tier 1 capital ratio | 12.96% | | 12.83% | | 13.79% | | | | | | | | |
| Total capital ratio | 13.99% | | 13.85% | | 14.78% | | | | | | | | |
| Leverage ratio | 11.05% | | 10.86% | | 11.83% | | | | | | | | |
| Total risk weighted assets | $15,520,691 | | $15,371,526 | | $14,549,658 | | | | | | | | |
| Book value per common share | $17.81 | | $17.62 | | $17.68 | | | | | | | | |
| Tangible common equity (“TCE”) per share | $13.71 | | $13.53 | | $13.81 | | | | | | | | |
| TCE ratio | 9.76% | | 9.64% | | 10.05% | | | | | | | | |
| 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 | | Twelve Months Ended |
| 12/31/2025 | | 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 12/31/2025 | | 12/31/2024 | |
| Balance at beginning of period | $152,509 | | $149,505 | | $147,412 | | $150,527 | | $153,270 | | $150,527 | | $158,694 |
| Initial allowance for purchased credit deteriorated (“PCD”) loans and purchased seasoned loans (“PSL”) acquired | - | | - | | 3,971 | | - | | - | | 3,971 | | - |
| Provision for losses on loans | 7,800 | | 8,100 | | 10,092 | | 5,200 | | 10,100 | | 31,192 | | 18,400 |
| Recoveries | 1,694 | | 1,517 | | 2,844 | | 233 | | 704 | | 6,288 | | 4,521 |
| Charge offs | (5,342) | | (6,613) | | (14,814) | | (8,548) | | (13,547) | | (35,317) | | (31,088) |
| Balance at end of period | $156,661 | | $152,509 | | $149,505 | | $147,412 | | $150,527 | | $156,661 | | $150,527 |
| During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly. |
| 12/31/2025 | | 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | | | |
| Allowance for unfunded loan commitments | $3,333 | | $3,933 | | $3,323 | | $2,323 | | $2,723 | | | | |
| Three Months Ended | | Twelve Months Ended |
| 12/31/2025 | | 9/30/2025 | | 6/30/2025 | | 3/31/2025 | | 12/31/2024 | | 12/31/2025 | | 12/31/2024 |
| Provision for losses on loans | $7,800 | | $8,100 | | $10,092 | | $5,200 | | $10,100 | | $31,192 | | $18,400 |
| Provision (credit) for unfunded loan commitments | (600) | | 610 | | 1,000 | | (400) | | (100) | | 610 | | (1,120) |
| Provision for credit losses | $7,200 | | $8,710 | | $11,092 | | $4,800 | | $10,000 | | $31,802 | | $17,280 |
Table Page 7
Selected Financial Data
| Three Months Ended | Twelve Months Ended |
|---|
| NET LOAN CHARGE OFFS (RECOVERIES): | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| CRE loans | $(1,467) | $(933) | $(843) | $899 | $156 | $(2,344) | $545 |
| C&I loans | 5,169 | 5,978 | 11,829 | 7,384 | 12,607 | 30,360 | 25,866 |
| Residential mortgage and other loans | (54) | 51 | 984 | 32 | 80 | 1,013 | 156 |
| Net loan charge offs | $3,648 | $5,096 | $11,970 | $8,315 | $12,843 | $29,029 | $26,567 |
| Net charge offs/average loans (annualized) | 0.10% | 0.14% | 0.33% | 0.25% | 0.38% | 0.20% | 0.13% |
| NONPERFORMING ASSETS: | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 |
| Loans on nonaccrual status | $131,747 | $110,010 | $110,739 | $83,808 | $90,564 |
| Accruing delinquent loans past due 90 days or more | 3,943 | 2,149 | 2,149 | 98 | 229 |
| Total nonperforming loans | 135,690 | 112,159 | 112,888 | 83,906 | 90,793 |
| Other real estate owned (“OREO”) | 365 | - | - | - | - |
| Total nonperforming assets | $136,055 | $112,159 | $112,888 | $83,906 | $90,793 |
| Nonperforming assets/total assets | 0.73% | 0.61% | 0.61% | 0.49% | 0.53% |
| Nonperforming loans/loans receivable | 0.92% | 0.77% | 0.78% | 0.63% | 0.67% |
| Nonaccrual loans/loans receivable | 0.90% | 0.75% | 0.77% | 0.63% | 0.67% |
| Allowance for credit losses/loans receivable | 1.07% | 1.05% | 1.04% | 1.11% | 1.11% |
| Allowance for credit losses/nonperforming loans | 115.46% | 135.98% | 132.44% | 175.69% | 165.79% |
| Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling $15.6 million, $15.3 million, $15.3 million, $11.8 million, and $12.8 million, at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively. |
| NONACCRUAL LOANS BY TYPE: | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 |
| CRE loans | $65,106 | $54,016 | $55,368 | $24,106 | $23,396 |
| C&I loans | 53,136 | 45,494 | 46,945 | 50,544 | 60,807 |
| Residential mortgage and other loans | 13,505 | 10,500 | 8,426 | 9,158 | 6,361 |
| Total nonaccrual loans | $131,747 | $110,010 | $110,739 | $83,808 | $90,564 |
Table Page 8
Selected Financial Data
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 |
| 30 - 59 days past due | $19,056 | $15,788 | $4,909 | $11,927 | $8,681 |
| 60 - 89 days past due | 4,244 | 5,117 | 2,843 | 27,719 | 5,164 |
| Total accruing delinquent loans 30-89 days past due | $23,300 | $20,905 | $7,752 | $39,646 | $13,845 |
| ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 |
| CRE loans | $12,064 | $14,872 | $4,377 | $4,993 | $3,205 |
| C&I loans | 2,209 | 3,356 | 1,084 | 27,455 | 1,288 |
| Residential mortgage and other loans | 9,027 | 2,677 | 2,291 | 7,198 | 9,352 |
| Total accruing delinquent loans 30-89 days past due | $23,300 | $20,905 | $7,752 | $39,646 | $13,845 |
| CRITICIZED LOANS: | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 |
| Special mention loans | $94,003 | $131,384 | $137,313 | $184,659 | $179,073 |
| Classified loans | 257,113 | 241,483 | 277,418 | 264,064 | 270,896 |
| Total criticized loans | $351,116 | $372,867 | $414,731 | $448,723 | $449,969 |
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”) | 12/31/2025 | 9/30/2025 | 12/31/2024 | | |
| Total stockholders’ equity | $2,283,268 | $2,258,960 | $2,134,505 | | |
| Goodwill and core deposit intangible assets, net | (525,938) | (524,503) | (466,781) | | |
| TCE | $1,757,330 | $1,734,457 | $1,667,724 | | |
| Total assets | $18,531,626 | $18,510,799 | $17,054,008 | | |
| Goodwill and core deposit intangible assets, net | (525,938) | (524,503) | (466,781) | | |
| Tangible assets | $18,005,688 | $17,986,296 | $16,587,227 | | |
| TCE ratio | 9.76% | 9.64% | 10.05% | | |
| Common shares outstanding | 128,201,655 | 128,185,271 | 120,755,658 | | |
| TCE per share | $13.71 | $13.53 | $13.81 | | |
| Three Months Ended | Twelve Months Ended |
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY (“ROTCE”) | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Average stockholders’ equity | $2,275,285 | $2,237,375 | $2,156,858 | $2,221,699 | $2,130,140 |
| Average goodwill and core deposit intangible assets, net | (524,118) | (525,022) | (467,021) | (510,404) | (467,620) |
| Average TCE | $1,751,167 | $1,712,353 | $1,689,837 | $1,711,295 | $1,662,520 |
| Net income (GAAP) | $34,466 | $30,776 | $24,337 | $61,588 | $99,630 |
| ROTCE (annualized) | 7.87% | 7.19% | 5.76% | 3.60% | 5.99% |
| Three Months Ended | Twelve Months Ended |
| PROVISION FOR CREDIT LOSSES EXCLUDING NOTABLE ITEMS | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Provision for credit losses | $7,200 | $8,710 | $10,000 | $31,802 | $17,280 |
| Notable items: | | | | | |
| Merger-related provision for credit losses | - | - | - | (553) | - |
| Provision for credit losses excluding notable items | $7,200 | $8,710 | $10,000 | $31,249 | $17,280 |
| During the fourth quarter of 2025, the Company adopted ASU 2025-08 effective January 1, 2025, and applied the guidance to the acquisition of Territorial Bancorp which was completed on April 2, 2025. The presentation of prior periods has been adjusted accordingly. |
Table Page 10
Selected Financial Data
| Three Months Ended | Twelve Months Ended |
|---|
| PRE-PROVISION NET REVENUE (“PPNR”) | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Net interest income before provision for credit losses | $127,405 | $126,557 | $102,135 | $472,234 | $427,851 |
| Noninterest income | 18,351 | 15,385 | 15,881 | 26,468 | 47,077 |
| Revenue | 145,756 | 141,942 | 118,016 | 498,702 | 474,928 |
| Less: Noninterest expense | 99,428 | 96,861 | 77,590 | 389,623 | 324,684 |
| PPNR | $46,328 | $45,081 | $40,426 | $109,079 | $150,244 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | $ - | $ - | $ - | $38,856 | $ - |
| FDIC special assessment expense (reversal) | (691) | - | - | (691) | 691 |
| Merger and restructuring-related (gains) costs, net (including gain on branch sale) | 776 | 958 | (423) | 21,534 | 4,621 |
| Total notable items included in PPNR | 85 | 958 | (423) | 59,699 | 5,312 |
| PPNR, excluding notable items | $46,413 | $46,039 | $40,003 | $168,778 | $155,556 |
| Three Months Ended | Twelve Months Ended |
| PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Net income (GAAP) | $34,466 | $30,776 | $24,337 | $61,588 | $99,630 |
| Notable items: | | | | | |
| Merger-related provision for credit losses | - | - | - | 553 | - |
| Loss on investment portfolio repositioning | - | - | - | 38,856 | - |
| FDIC special assessment expense (reversal) | (691) | - | - | (691) | 691 |
| Merger and restructuring-related (gains) costs, net (including gain on branch sale) | 776 | 958 | (423) | 21,534 | 4,621 |
| Total notable items included in pre-tax income | 85 | 958 | (423) | 60,252 | 5,312 |
| Tax effect on notable items in pre-tax income | (25) | (208) | 125 | (13,325) | (1,562) |
| Notable impact from California state tax apportionment law change | (49) | - | - | 4,829 | - |
| Total notable items, net of tax | 11 | 750 | (298) | 51,756 | 3,750 |
| Net income excluding notable items | $34,477 | $31,526 | $24,039 | $113,344 | $103,380 |
| Diluted common shares | 128,769,564 | 128,593,874 | 121,401,285 | 126,774,552 | 121,108,594 |
| EPS excluding notable items | $0.27 | $0.25 | $0.20 | $0.89 | $0.85 |
| Average assets | $18,595,446 | $18,548,982 | $17,228,881 | $18,244,370 | $17,746,408 |
| ROA excluding notable items (annualized) | 0.74% | 0.68% | 0.56% | 0.62% | 0.58% |
| Average equity | $2,275,285 | $2,237,375 | $2,156,858 | $2,221,699 | $2,130,140 |
| ROE excluding notable items (annualized) | 6.06% | 5.64% | 4.46% | 5.10% | 4.85% |
| Average TCE | $1,751,167 | $1,712,353 | $1,689,837 | $1,711,295 | $1,662,520 |
| ROTCE excluding notable items (annualized) | 7.88% | 7.36% | 5.69% | 6.62% | 6.22% |
Table Page 11
Selected Financial Data
| Three Months Ended | Twelve Months Ended |
|---|
| NONINTEREST INCOME EXCLUDING NOTABLE ITEMS | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Noninterest income | $18,351 | $15,385 | $15,881 | $26,468 | $47,077 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | - | - | - | 38,856 | - |
| Restructuring-related net gain on branch sale | - | - | (1,006) | - | (1,006) |
| Noninterest income excluding notable items | $18,351 | $15,385 | $14,875 | $65,324 | $46,071 |
| Three Months Ended | Twelve Months Ended |
| EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Noninterest expense | $99,428 | $96,861 | $77,590 | $389,623 | $324,684 |
| Notable items: | | | | | |
| FDIC special assessment (expense) reversal | 691 | - | - | 691 | (691) |
| Merger and restructuring-related costs | (776) | (958) | (583) | (21,534) | (5,627) |
| Noninterest expense excluding notable items | $99,343 | $95,903 | $77,007 | $368,780 | $318,366 |
| Revenue | $145,756 | $141,942 | $118,016 | $498,702 | $474,928 |
| Notable items: | | | | | |
| Loss on investment portfolio repositioning | - | - | - | 38,856 | - |
| Restructuring-related net gain on branch sale | - | - | (1,006) | - | (1,006) |
| Revenue excluding notable items | $145,756 | $141,942 | $117,010 | $537,558 | $473,922 |
| Efficiency ratio excluding notable items | 68.16% | 67.56% | 65.81% | 68.60% | 67.18% |
| Three Months Ended | Twelve Months Ended |
| EFFECTIVE TAX RATE EXCLUDING NOTABLE ITEMS | 12/31/2025 | 9/30/2025 | 12/31/2024 | 12/31/2025 | 12/31/2024 |
| Income before income taxes | $39,128 | $36,371 | $30,426 | $77,277 | $132,964 |
| Notable items before tax effect | 85 | 958 | (423) | 60,252 | 5,312 |
| Income before tax excluding notable items | $39,213 | $37,329 | $30,003 | $137,529 | $138,276 |
| GAAP income tax provision | $4,662 | $5,595 | $6,089 | $15,689 | $33,334 |
| Tax effect on notable items in pre-tax income | 25 | 208 | (125) | 13,325 | 1,562 |
| Notable impact from California state tax apportionment law change | 49 | - | - | (4,829) | - |
| Income tax provision excluding notable items | $4,736 | $5,803 | $5,964 | $24,185 | $34,896 |
| Effective tax rate excluding notable items | 12.08% | 15.55% | 19.88% | 17.59% | 25.24% |
Table Page 12
Contacts
Julianna Balicka
Executive Vice President & Chief Financial Officer
InvestorRelations@bankofhope.com
(tables follow)