Hanmi Financial (NASDAQ: HAFC) completes $55M 6.50% subordinated notes
Rhea-AI Filing Summary
Hanmi Financial Corporation completed a private placement of $55.0 million of 6.50% fixed-to-floating rate subordinated notes due 2036. The notes pay a fixed 6.50% rate until July 31, 2031, then reset quarterly to Three-Month Term SOFR plus 234 bps and are intended to qualify as Tier 2 capital.
Hanmi plans to use the proceeds to redeem $110.0 million of 3.75% subordinated notes due 2031 and for general corporate purposes, with redemption expected on or about September 1, 2026. In its July 2026 investor presentation, the company reported 2Q26 net income of $23.5 million, or $0.79 per diluted share, ROAA of 1.20%, ROAE of 11.09%, loans of $6.5 billion, deposits of $7.0 billion, total assets of $8.0 billion, and tangible common equity to tangible assets of 10.03%. Asset quality remained strong, with nonperforming assets at 0.12% of total assets and nonperforming loans at 0.15% of total loans, while 58% of quarterly earnings was returned through $8.3 million in dividends and $5.2 million of share repurchases.
Positive
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Filing Explained
Hanmi replaced part of its subordinated-debt funding with new notes; the larger older-note redemption is notified but remains pending.
On
The new notes are unsecured obligations that rank behind senior debt and obligations to general and secured creditors. They generally cannot be redeemed before the fifth anniversary of issuance, adding a longer-dated financing obligation while the older notes remain outstanding until redemption.
A private placement is a sale to selected investors outside a public offering. The notes were not registered, so resale requires registration or an applicable exemption; the filing does not report a public-market offering of these securities.
The next specified milestone is the redemption of the 2031 notes: the company has given notice, but completion remains expected rather than reported as complete. The redemption price is 100% of principal plus accrued and unpaid interest.
8-K Event Classification
Key Figures
Key Terms
Fixed-to-Floating Rate Subordinated Notes financial
Tier 2 capital regulatory
tangible common equity to tangible assets financial
preprovision net revenue financial
Three-Month Term SOFR market
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FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 1.01 | Entry into a Material Definitive Agreement |
On July 30, 2026, Hanmi Financial Corporation (the “Company”), the holding company for Hanmi Bank, a California state-chartered bank (the “Bank”), entered into Subordinated Note Purchase Agreements (collectively, the “Agreements”) with certain qualified institutional buyers and institutional accredited investors (the “Purchasers”) and, pursuant to the Agreements, issued to the Purchasers $55.0 million in aggregate principal amount of the Company’s 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Notes”). The Notes were offered and sold in a private placement in reliance on exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506(b) of Regulation D thereunder.
The Company intends to use the net proceeds from the issuance and sale of the Notes to redeem its currently outstanding 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031 in an aggregate payment amount of $110.0 million (the “2031 Notes”) and for general corporate purposes. The Notes are intended to qualify at the holding company level as Tier 2 capital under the capital guidelines of the Federal Reserve Board.
The Notes, which mature on July 31, 2036, bear interest at a fixed annual rate of 6.50% for the period up to, but excluding, July 31, 2031 (the “Fixed Interest Rate Period”). From and including July 31, 2031 until maturity or redemption (the “Floating Interest Rate Period”), the interest rate will adjust to a floating rate equal to a benchmark rate, which is expected to be the then-current Three-Month Term SOFR, plus 234 basis points. The Company will pay interest in arrears semi-annually during the Fixed Interest Rate Period and quarterly during the Floating Interest Rate Period. The Notes constitute unsecured and subordinated obligations of the Company and rank junior in right of payment to any senior indebtedness and obligations to general and secured creditors. Subject to limited exceptions, the Company cannot redeem the Notes before the fifth anniversary of the issuance date. Thereafter, the Notes are redeemable by the Company on July 31, 2031 and any subsequent interest payment date.
The Agreements and Notes contain customary subordination provisions, representations and warranties, covenants, and events of default.
The foregoing description of the Agreements and the Notes does not purport to be complete and is qualified in its entirety by reference to the form of the Agreements and the form of the Notes, which are filed as Exhibits 10.1 and 4.1, respectively, to this Current Report on Form 8-K and are incorporated by reference into this Item 1.01.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant |
The discussion under Item 1.01 is incorporated by reference into this Item 2.03.
| Item 7.01 | Regulation FD Disclosure |
In connection with the offering of the Notes, the Company delivered an investor presentation to potential investors on a confidential basis, a copy of which is furnished herewith as Exhibit 99.1.
The information furnished in this Item 7.01 and in Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 8.01 | Other Events |
On July 30, 2026, the Company provided notice to the trustee to redeem all $110.0 million of the outstanding principal amount of the 2031 Notes. The redemption price for the 2031 Notes will equal 100% of the aggregate principal amount of the 2031 Notes, plus accrued and unpaid interest to, but excluding the redemption date. The redemption is expected to occur on or about September 1, 2026.
On July 30, 2026, the Company issued a press release announcing the completion of the offering of the Notes. A copy of the press release is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Company intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this Current Report on Form 8-K. All statements regarding the Company’s expected financial position and operating results, the Company’s business strategy, the Company’s financial plans, forecasted demographic and economic trends relating to the Company’s industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Company’s use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend.” The Company cannot guarantee that its expectations in such forward-looking statements will turn out to be correct. The Company’s actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, tariffs, cybersecurity risks, changes in FDIC assessments, bank failures, difficulties in managing the Company’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends. Information concerning these and other factors, including Risk Factors, can be found in the Company’s periodic filings with the Securities and Exchange Commission, including the discussion under the heading “Item 1A. Risk Factors” in the Company’s 2025 Annual Report on Form 10-K. The Company does not undertake, and specifically disclaims, any obligation to publicly revise any
forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Accordingly, you should not place undue reliance on forward-looking statements.
| Item 9.01 | Financial Statements and Exhibits |
| (a) | Financial statements of businesses acquired. None. | |||
| (b) | Pro forma financial information. None. | |||
| (c) | Shell company transactions: None. | |||
| (d) | Exhibits. | |||
| 4.1 | Form of 6.50% Fixed-to-Floating Rate Subordinated Note due 2036 of Hanmi Financial Corporation | |||
| 10.1 | Form of Subordinated Note Purchase Agreement, dated as of July 30, 2026, by and between Hanmi Financial Corporation and the several Purchasers | |||
| 99.1 | Investor Presentation | |||
| 99.2 | Press release dated July 30, 2026 | |||
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) | |||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HANMI FINANCIAL CORPORATION | ||||||
| DATE: July 30, 2026 | By: | /s/ Bonita I. Lee | ||||
| Bonita I. Lee | ||||||
| President and Chief Executive Officer | ||||||
California | Colorado | Georgia | Illinois | New Jersey | New York | Texas | Virginia | Washington Fixed Income Presentation July 2026 NASDAQ | HAFC Exhibit 99.1
TABLE OF CONTENTS TERMS OF THE PROPOSED OFFERING HANMI FINANCIAL CORPORATION OVERVIEW 2Q26 PERFORMANCE RESULTS BALANCE SHEET COMPOSITION AND TRENDS ASSET QUALITY CAPITAL AND LIQUIDITY NON-GAAP RECONCILIATION 6 8 12 20 27 33 40
FORWARD-LOOKING STATEMENTS Hanmi Financial Corporation (the “Company”) cautions investors that any statements contained herein that are not historical facts are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, those statements regarding operating performance, financial position, financial results and liquidity, business strategies, regulatory, economic and competitive outlook, investment and expenditure plans, capital and financing needs and availability, litigation, plans and objectives, merger or sale activity, and all other forecasts and statements of expectation or assumption underlying any of the foregoing. These statements involve known and unknown risks and uncertainties that are difficult to predict. Investors should not rely on any forward-looking statement and should consider risks, such as a failure to maintain adequate levels of capital and liquidity to support our operations, general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions, volatility and deterioration in the credit and equity markets, changes in investor sentiment or consumer spending, borrowing and savings habits, availability of capital from private and government sources, demographic changes, competition for loans and deposits and failure to attract or retain loans and deposits, inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding, our ability to enter new markets successfully and capitalize on growth opportunities, the current or anticipated impact of military conflict, terrorism, or other geopolitical events, the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams, risks of natural disasters, legal proceedings and litigation brought against us, risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors, the failure to maintain current technologies, risks associated with Small Business Administration loans, failure to attract, develop, or retain key employees, our ability to access cost-effective funding, the imposition of tariffs or other domestic or international governmental policies or trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy, the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans or debt ceiling impasses or fiscal uncertainty, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, fluctuations in real estate values, changes in accounting policies and practices, changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests, strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make, the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses, our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses, changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements, and our ability to control expenses. Forward-looking statements are based upon the good faith beliefs and expectations of management as of this date only and are further subject to additional risks and uncertainties, including, but not limited to, the risk factors set forth in our earnings release dated July 21, 2026, including the section titled “Forward Looking Statements” and the Company’s most recent Form 10-K, 10-Q and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise the forward-looking statements herein.
NON-GAAP FINANCIAL INFORMATION This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures include tangible common equity to tangible assets, tangible common equity per share (including without the impact of available for sale securities on the accumulated other comprehensive income) and pro forma regulatory capital. Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided at the end of this presentation.
SAFE HARBOR STATEMENT The information contained in this presentation is a summary and is not complete. It has been prepared for use only in connection with the proposed private placement (the "Offering") of subordinated notes of Hanmi Financial Corporation (the "Company") (the "Securities"). The offer and sale of the Securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and are being offered in a private placement exempt from registration under the Securities Act and other applicable securities laws and may not be re-offered or re-sold absent registration or an applicable exemption from the registration requirements. The Securities are being offered only to entities that qualify as institutional "accredited investors," as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated by the SEC under the Securities Act, and "qualified institutional buyers" as defined in Rule 144A under the Securities Act. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of the Company. Neither this presentation nor any of the information contained herein may be reproduced or distributed, directly or indirectly, to any other person and is provided conditioned upon, and subject to, an agreement regarding confidentiality between the Company and the original recipient hereof. This presentation is provided for informational purposes only and is being furnished on a confidential basis to a limited number of institutional accredited investors and qualified institutional buyers solely for the purposes of enabling them to determine whether they wish to proceed with further investigation of the Company and the Offering. As it is a summary, such information is not intended to and does not contain all the information that you will require to form the basis of any investment decision. The information contained in this presentation speaks only as of the date hereof. Neither the delivery of this presentation nor any eventual sale of the Securities shall, under any circumstances, imply that the information contained herein is correct as of any future date or that there has been no change in the Company's business affairs described herein after the date hereof. Nothing contained herein is, or should be relied upon as, a promise or representation as to the future performance of the Company or any of its subsidiaries and affiliates. Neither the Company nor any of its subsidiaries and affiliates undertakes any obligation to update or revise this presentation except to the extent required by applicable law. The Company anticipates providing you with the opportunity to ask questions, receive answers, obtain additional information, and complete your own due diligence review concerning the Company and the Offering prior to entering into any agreement to offer and sell the Securities to investors. By accepting delivery of the information contained herein, you agree to undertake and rely upon your own independent investigation and analysis and consult with your own attorneys, accountants, and other professional advisors regarding the Company and the merits and risks of an investment in the Securities, including all related legal, investment, tax and other matters. None of the Company or any representative of the foregoing, or any other person shall have any liability for any information included herein or otherwise made available in connection with the Offering, except for liabilities expressly assumed by the Company in the definitive purchase agreement and the related documentation for the offer and sale of the Securities to investors. Any such offer or sale may be made only by a definitive purchase agreement and the information contained herein will be superseded in its entirety by such definitive purchase agreement. Each potential investor should review the purchase agreement, make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities mentioned in this presentation and should consult its own legal counsel and financial, accounting, regulatory and tax advisors to determine the consequences of such an investment before making an investment decision and should not rely on any information set forth in this presentation. Each investor must comply with all legal requirements in each jurisdiction in which it purchases, offers, or sells the Securities, and must obtain any consent, approval, or permission required by it in connection with the Securities or the Offering. The Company does not make any representation or warranty regarding, and has no responsibility for, the legality of an investment in the Securities under any investment, securities or similar laws or regulations. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED, AND THE COMPLETENESS AND ACCURACY OF THE DISCLOSURES IN THIS PRESENTATION HAVE NOT BEEN PASSED UPON BY, THE SEC, ANY STATE SECURITIES COMMISSION, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER REGULATORY BODY. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES ARE NOT A DEPOSIT OR A BANK ACCOUNT AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. Certain information contained in this presentation may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and have not independently verified such information.
Terms of the Proposed Offering
A rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal at any time by assigning rating organization. Each rating organization has its own methodology for assigning ratings and, accordingly, each rating should be evaluated independently of any other rating TERMS OF THE PROPOSED SUBORDINATED DEBT OFFERING Issuer Hanmi Financial Corporation (NASDAQ GS: HAFC) Security Bank Holding Company Subordinated Notes Issuance Type Regulation D Private Placement Security Rating(1) BBB- / Stable Outlook (Kroll Bond Rating Agency) Offering Size $55 Million Term / Maturity 10 Years / 2036 Redemption Provision 5-year non-call period, callable at par plus accrued but unpaid interest thereafter Interest Payments 5-year fixed-rate, semi-annual interest payments; thereafter 5-year floating-rate, quarterly interest payments Covenants / Restrictions Structured to comply with regulatory requirements for Tier 2 Capital treatment Use of Proceeds Redemption of outstanding indebtedness and general corporate purposes Sole Placement Agent
Hanmi Financial Corporation Overview
EXECUTIVE TEAM Bonnie Lee President & CEO With 39 years of banking experience and 12 years at Hanmi. Previous Experience: BBCN Bancorp, Shinhan Bank America, Nara Bank Romolo Santarosa Chief Financial Officer 34 years of banking experience and 10 years at Hanmi. Previous Experience: Opus Bank, First California Financial Group Anthony Kim Chief Banking Officer 31 years of banking experience and 12 years at Hanmi. Previous Experience: BBCN Bancorp Matthew Fuhr Chief Credit Officer 29 years of banking experience and 10 years at Hanmi. Previous Experience: Pacific Western Bank, FDIC Michael Du Chief Risk Officer 26 years of banking experience and 6 years at Hanmi. Previous Experience: Pacific Western Bank, Unify Financial Federal Credit Union Vivian Kim General Counsel & Chief People Officer 15 years of legal experience and 10 years at Hanmi. Previous Experience: Dykema Gossett LLP, a national law firm. Business Leadership Peter Yang, Division President Chris Cho, Division President Anna Chung, Chief Community Lending Officer Larsen Lee, Chief Mortgage Lending Officer Kevin Kepp, Sr. BDO - Commercial Equipment Leasing Division Fred Lie, Chief Digital Banking Officer Mansun Cho, Head of Regional Retail - California Jenny Simmons Chief Operations Officer 35 years of banking experience. Previous Experience: Genesis Bank, Opus Bank
NATIONWIDE NETWORK Second Largest Korean-American Bank in the U.S. Founded in 1982 in Los Angeles, as the first Korean-American bank 32 full-service branches, five loan production offices and three loan centers in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia Focused on MSAs with high Asian-American and multi-ethnic populations Strong track record of growth Well capitalized, significantly above regulatory requirements Experienced Bankers with Deep Community Ties 1 2 3 5 1 1 1 1 1 Branches Loan Production Office & Centers 20 1 2 $8.0B TOTAL ASSETS $6.5B LOANS $7.0B DEPOSITS 9% LOAN GROWTH(1) 10.03% TCE/TA(2) $27.04 TBVPS(2) INVESTMENT HIGHLIGHTS As of 2Q26 CAGR based on the average loan growth between 2013, when new executive management was appointed, and 2Q26 Non-GAAP financial measure; refer to the non-GAAP reconciliation slide 1
Acquired Central Bancorp, Inc. ($1.3 billion in assets) THE HANMI TIMELINE U.S. subsidiaries of Korean Corporations First Korean American Bank in the U.S. Began offering SBA loans Acquired First Global Bank Listed HAFC common stock Acquired Pacific Union Bank ($1.2 billion in assets) Completed $70 million secondary common stock offering Acquired Commercial Equipment Leasing Division ($228 million in assets) Assets surpassed $5 billion Opened a Manhattan, NY branch Assets surpassed $7 billion Celebrated 40th Anniversary Launch of USKC(1) Revitalization of mortgage lending Opened Chinatown branch in Houston, Texas Opened Representative Office in Seoul, South Korea 1982 1988 2001 2004 2007 2014 2016 2017 2018 2020 2022 2024 For over 40 years, we have been dedicated to helping our stakeholders bank on their dreams.
2Q26 Performance Results
Net Income $23.5M Diluted EPS $0.79 ROAA 1.20% ROAE 11.09% NIM 3.36% Efficiency Ratio 54.07% Earnings Performance Net income was $23.5 million, or $0.79 per diluted share, up 4.2% from the first quarter, driven by continued growth in net interest income and lower credit loss expense. Return on average assets and return on average equity during the quarter were 1.20% and 11.09%, respectively. Net interest income increased 1.0% from the prior quarter, driven by higher earning asset yields from the growth in commercial real estate and commercial and industrial lending. The increase was further supported by an improved funding mix, including lower-cost interest-bearing deposits and reduced borrowings. Deposits and Loans Deposits increased 2.3% to $7.0 billion from the prior quarter and noninterest-bearing demand deposits increased to 31% of total deposits, from 30% for the prior quarter. New loan production was $371.9 million for the second quarter of 2026 at an average rate of 6.59%, while payoffs were $156.4 million at an average rate of 6.39%. Asset Quality and Capital Asset quality remained strong as nonperforming assets to total assets was 0.12%, an improvement of four basis points from the prior quarter, and nonperforming loans to total loans was 0.15%, also an improvement of four basis points from the prior quarter. Hanmi returned 58% of second-quarter net earnings to stockholders in the form of $8.3 million in dividends and $5.2 million in share repurchases; capital ratios remained healthy with tangible common equity to tangible assets(1) at 10.03%. 2Q26 HIGHLIGHTS Non-GAAP financial measure; refer to the non-GAAP reconciliation slide.
LOAN PRODUCTION Loan production of $371.9 million for the second quarter, which included Commercial Real Estate production of $170.1 million. Weighted average interest rate is the stated loan interest rate weighted by the loan amount. Production includes mortgage loan purchases of $10.3 million, $3.0 million, $3.4 million, and $12.3 million for 2Q25, 3Q25, 4Q25, and 2Q26, respectively. $46.8 million, $44.9 million, $44.1 million, $40.7 million, and $37.1 million of SBA loan production includes $23.3 million, $20.6 million, $22.3 million, $23.9 million, and $20.2 million of loans secured by CRE and the remainder represents C&I loans for 2Q25, 3Q25, 4Q25, 1Q26, and 2Q26, respectively. $170.1M Commercial real estate loan production $89.2M Commercial and industrial loan production $25.5M Equipment finance production $50.0M Residential mortgage production $37.1M SBA loan production New Production and Weighted Average Interest Rate(1) ($ in millions) (3) (2)
2Q26 FINANCIAL SUMMARY Note: Numbers may not add due to rounding. Percentage change calculated from dollars in thousands; change in basis points for selected balance sheet items and performance metrics. Non-GAAP financial measure, refer to the non-GAAP reconciliation slide. (2) Consolidated Statements of Income Source: Prologue Consolidated YTD IS after GL Close (In thousands, except share and per share data) Three Months Ended DO NOT DELETE Side Calcs (not part of the linked table) 46,203 46,112 Amount Percentage 45,838 Amount Percentage THESE COLUMNS Linked Quarter CYQ vs PYQ 46203 46112 Change Change 45838 Change Change $ Change $ Change Notes (related to the linked table) Interest and dividend income: Last Number Truncated Foot check Interest and fees on loans $94,808 $93,866 942 1.4% $92,589 $2,219 2.4% 6 $0 $1,277 Interest on securities 6,337 5,959 378 6.3% 6,261 76 1.2% 9 0 -,302 Dividends on FHLB stock 219 831 -,612 -0.73646209386281591 354 -,135 -0.38135593220338981 1 0 477 Interest on deposits in other banks 1,958 1,496 462 0.30882352941176472 2,129 -,171 -8.3% 6 0 -,633 Total interest and dividend income ,103,322 ,102,152 1,170 1.1% ,101,333 1,989 1.9628354040638292 2 0 0 819 Interest expense: Interest on deposits 37,774 36,738 1,036 2.8% 41,924 -4,150 -9.9% 8 0 -5,186 Interest on borrowings 154 676 -,522 -0.77218934911242598 684 -,530 -0.77485380116959068 6 0 -8 Interest on subordinated debentures 1,537 1,535 2 .1% 1,586 -49 -3.9% 5 0 -51 Total interest expense 39,465 38,949 516 1.3% 44,194 -4,729 -0.10700547585645111 9 0 0 -5,245 Net interest income before credit loss expense 63,857 63,203 654 1.3% 57,139 6,718 0.11757293617319169 3 0 6,064 Credit loss expense 1,186 2,892 -1,706 -0.58990318118948826 7,631 -6,445 -0.84458131306512907 2 0 -4,739 Net interest income after credit loss expense 62,671 60,311 2,360 3.9% 49,508 13,163 0.26587622202472327 1 0 0 10,803 Noninterest income: Service charges on deposit accounts 2,102 2,127 -25 -1.2% 2,169 -67 -3.9% 7 0 -42 Trade finance and other service charges and fees 1,902 1,501 401 0.26715522984676882 1,461 441 0.30184804928131415 1 0 40 Gain on sale of Small Business Administration (“SBA”) loans 1,318 2,102 -,784 -0.37297811607992387 2,160 -,842 -0.38981481481481484 2 0 -58 Gain on sale of residential mortgage loans 357 485 -,128 -0.26391752577319588 0 357 - 0 485 new Q1 2026 Other operating income 2,669 2,324 345 0.14845094664371772 2,281 388 0.1701008329679965 4 0 43 Total noninterest income 8,348 8,539 -,191 -2.2% 8,071 277 3.4% 4 5 0 468 Noninterest expense: Salaries and employee benefits 22,784 21,956 828 3.8% 22,069 715 3.2% 6 0 -,113 Occupancy and equipment 4,383 4,414 -31 -0.7% 4,344 39 .9% 4 0 70 Data processing 4,555 4,386 169 3.9% 3,727 828 0.22216259726321438 6 0 659 Professional fees 1,997 2,780 -,783 -0.28165467625899282 1,725 272 0.15768115942028985 0 0 1,055 Supplies and communications 491 556 -65 -0.11690647482014388 515 -24 -4.7% 6 0 41 Advertising and promotion 679 688 -9 -1.3% 798 -,119 -0.14912280701754385 8 0 -,110 Other operating expenses 4,150 3,588 562 0.15663322185061315 3,169 981 0.30956137582833704 8 0 419 Total noninterest expense 39,039 38,368 671 1.7% 36,347 2,692 7.4% 8 0 0 2,021 CQ Linked quarter Change Income before tax 31,980 30,482 1,498 4.9% 21,232 10,748 0.50621703089675962 2 0 9,250 Tax rate - current quarter 0.25998950200118104 Gross revenues 71,742 71,178 .8% Income tax expense 8,475 7,925 550 6.9% 6,115 2,360 0.38593622240392478 5 0 1,810 Preprovision revenues 33,374 32,069 4.7% Net income $23,505 $22,557 948 4.2% $15,117 $8,388 0.55487199841238344 -3 4 0 7,440 Tax rate - linked quarter 0.2949943570337914 0 Basic earnings per share: $0.79072810016890305 $0.75521277128846465 $0.5 0 $0.25521277128846465 Diluted earnings per share: $0.79 $0.75 $0.5 0 $0.25 Tax rate - prior year quarter 0.29630072074224506 Weighted-average shares outstanding: Basic 29,514,712.263736263 29,629,130.211111113 29,948,836 0 -,319,705.78888888657 Diluted 29,689,113.59736263 29,808,999.247577779 30,054,456 0 -,245,456.752422221 Common shares outstanding 29,650,306 29,806,694 30,176,568 0 -,369,874 Consolidated Statements of Income, Continued (In thousands, except share and per share data) Twelve Months Ended DO NOT DELETE 46,022 45,657 Percentage THESE COLUMNS 46022 45657 Change Change Interest and dividend income: Last Number Truncated Foot check Interest and fees on loans receivable $93,866 $,366,153 -,272,287 -0.74364268488855756 6 Interest on securities 5,959 21,583 ,-15,624 -0.72390307186211367 9 Dividends on FHLB stock 831 1,436 -,605 -0.42130919220055713 1 Interest on deposits in other banks 1,496 9,611 -8,115 -0.84434502132972633 6 Total interest and dividend income ,102,152 ,398,783 -,296,631 -0.74384063513239029 2 0 Interest expense: Interest on deposits 36,738 ,182,692 -,145,954 -0.79890745079149605 8 Interest on borrowings 676 6,746 -6,070 -0.89979246961162174 6 Interest on subordinated debentures 1,534 6,571 -5,037 -0.76654999239080812 round Q4 2025 4 Total interest expense 38,948 ,196,009 -,157,061 -0.80129483850231364 8 0 Net interest income before credit loss expense 63,204 ,202,774 -,139,570 -0.68830323414244432 4 Credit loss expense 2,892 4,419 -1,527 -0.34555329260013579 2 Net interest income after credit loss expense 60,312 ,198,355 -,138,043 -0.69593909909001539 6 -4 Noninterest income: Service charges on deposit accounts 2,127 9,381 -7,254 -0.77326511032938916 7 Trade finance and other service charges and fees 1,501 5,309 -3,808 -0.71727255603691842 1 Gain on sale of Small Business Administration ("SBA") loans 2,102 6,112 -4,010 -0.65608638743455494 2 Gain on sale of residential mortgage loans 485 485 - new Q1 2026 Other operating income 2,324 10,783 -8,459 -0.78447556338681257 4 Total noninterest income 8,539 31,585 ,-23,046 -0.72965015038784231 4 5 Noninterest expense: Salaries and employee benefits 21,956 83,368 ,-61,412 -0.73663755877554937 6 Occupancy and equipment 4,414 18,146 ,-13,732 -0.75675079907417608 4 Data processing 4,386 14,876 ,-10,490 -0.70516267813928479 6 Professional fees 2,780 6,956 -4,176 -0.60034502587694072 0 Supplies and communications 556 2,261 -1,705 -0.7540911101282618 6 Advertising and promotion 688 3,028 -2,340 -0.77278731836195513 8 Other operating expenses 3,588 12,700 -9,112 -0.71748031496062992 8 Total noninterest expense 38,368 ,141,335 -,102,967 -0.72853150316623627 Income before tax 30,483 88,605.4 ,-58,122.39999999994 -0.65596765150153979 efficiency ratios 8 0 0.53479781999637599 0.60307050294633446 Income tax expense 7,925 26,404 ,-18,479 -0.69985608241175579 3 Net income $22,558 $62,201.39999999994 ,-39,643.39999999994 -0.63733725352502146 tax rates 5 0.25998097300134504 0.2979965925188906 Basic earnings per share: $0.75521277128846465 $2.06 Diluted earnings per share: $0.75 $2.0499999999999998 Weighted-average shares outstanding: Basic 29,629,130.211111113 30,019,815 Diluted 29,808,999.247577779 30,102,336 Common shares outstanding 29,806,694 30,195,999 Consolidated Balance Sheets Source: Prologue Consolidated B/S report ("BS" tab) (In thousands) DO NOT DELETE Side Calcs (not part of the linked table) 46,203 46,112 Percentage 45,838 Percentage THESE COLUMNS Linked quarter CYQ to PYQ 46203 46112 Change Change 45838 Change Change Change Change Assets Last Number Truncated Foot check Cash and due from banks $,331,206 $,254,045 $77,161 0.30372965419512293 $,380,050 $,-48,844 -0.12851993158794894 5 $0 $-,126,005 B/S checks, and Loans to Deposits ratio calc: Securities available for sale, at fair value ,896,610 ,835,725 60,885 7.3% ,918,094 ,-21,484 -2.3% 5 0 ,-82,369 Loans held for sale, at the lower of cost or fair value 16,969 4,932 12,037 2.4405920519059205 49,611 ,-32,642 -0.65795892040071757 2 0 ,-44,679 CQ PQ Change Loans, net of allowance for credit losses 6,464,837 6,474,998 ,-10,161 -0.2% 6,239,201 ,225,636 3.6% 8 0 ,235,797 Loans receivable, net 6,474,998 6,493,465 ,-18,467 Accrued interest receivable 24,613 23,320 1,293 5.5% 23,749 864 3.6% 0 0 -,429 ACL - Loans 70,468 69,903 565 Premises and equipment, net 20,251 20,015 236 1.2% 20,607 -,356 -1.7% 5 0 -,592 Loans receivable, gross 6,545,466 6,563,368 ,-17,902 Customers’ liability on acceptances 116 0 116 - 214 -98 -0.45794392523364486 0 0 -,214 Servicing assets 6,419 6,535 -,116 -1.8% 6,420 -1 .-15576323987538941 5 0 115 Per "ER-Tables" tab 6,545,466 6,563,367 ,-17,901 Goodwill and other intangible assets, net 11,031 11,031 0 0.0% 11,031 0 0.0% 1 0 0 check 0 1 Federal Home Loan Bank (“FHLB”) stock, at cost 16,385 16,385 0 0.0% 16,385 0 0.0% 5 0 0 Bank-owned life insurance 56,048 56,534 -,486 -0.9% 56,985 -,937 -1.6% 4 0 -,451 Deposits 6,800,622 6,677,650 Prepaid expenses and other assets ,156,988 ,135,707 21,281 0.15681578695277326 ,140,016 16,972 0.12121471831790652 7 0 -4,309 Total assets $8,001,473 $7,839,227 $,162,246 2.7% $7,862,363 $,139,110 1.8% 7 0 $0 $,-23,136 Loans to deposits 0.96248049075511033 0.98288589548718486 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing $2,135,418 $2,030,743 $,104,675 5.2% $2,105,369 $30,049 1.4% 3 $0 $,-74,626 Interest-bearing 4,819,924 4,769,879 50,045 1.5% 4,623,753 ,196,171 4.2% 9 0 ,146,126 Total deposits 6,955,342 6,800,622 ,154,720 2.3% 6,729,122 ,226,220 3.4% 2 0 71,500 Accrued interest payable 27,530 30,592 -3,062 -0.10009152719665272 30,567 -3,037 -9.9% 2 0 25 Bank's liability on acceptances 116 0 116 - 214 -98 -0.45794392523364486 0 0 -,214 Borrowings 0 0 0 - ,127,500 -,127,500 -100.0% 0 0 -,127,500 Subordinated debentures ,130,773 ,130,618 155 .1% ,130,960 -,187 -0.1% 8 0 -,342 Accrued expenses and other liabilities 75,032 74,576 456 .6% 81,166 -6,134 -7.6% 6 0 -6,590 Total liabilities 7,188,793 7,036,408 ,152,385 2.2% 7,099,529 89,264 1.3% 0 8 0 ,-63,121 Stockholders’ equity: Common stock 34 34 0 0.0% 34 0 0.0% 4 0 0 ,381,183,271.2999997 Additional paid-in capital ,596,303 ,595,374 929 .2% ,592,825 3,478 .6% 4 0 2,549 Accumulated other comprehensive (loss) ,-46,552 ,-45,553 -,999 2.2% ,-54,511 7,959 -0.14600722789895618 -3 0 8,958 Retained earnings ,423,499 ,408,327 15,172 3.7% ,367,251 56,248 0.15315955572619272 7 13,992 0 41,076 Less treasury stock -,160,604 -,155,363 -5,241 3.4% -,142,765 ,-17,839 0.1249535950688194 -3 0 ,-12,598 Total stockholders' equity ,812,680 ,802,819 9,861 1.2% ,762,834 49,846 6.5% 9 0 0 39,985 Total liabilities and stockholders’ equity $8,001,473 $7,839,227 $,162,246 2.7% $7,862,363 $,139,110 1.8% 9 -2 $0 $,-23,136 N/M - Not meaningful. 7,912,360 ,796,386 0.10065088039472421 Change (1) ($ in millions, except EPS) $46,203 $46,112 $45,838 Q/Q Y/Y Income Statement Summary Net interest income before credit loss expense Net interest income before credit loss $63.856999999999999 $63.203000000000003 $57.139000000000003 1.3% 0.11757293617319169 Total noninterest income Noninterest income 8.3480000000000008 8.5389999999999997 8.0709999999999997 -2.2% 3.4% Operating revenue 72.204999999999998 71.742000000000004 65.210000000000008 .6% 0.10726882380003055 Total noninterest expense Noninterest expense 39.039000000000001 38.368000000000002 36.347000000000001 1.7% 7.4% Preprovision net revenue 33.165999999999997 33.374000000000002 28.863000000000007 -0.6% 0.14908360184318981 Credit loss expense Credit loss expense 1.1859999999999999 2.8919999999999999 7.6310000000000002 -0.58990318118948826 -0.84458131306512907 Income before tax Pretax income 31.98 30.481999999999999 21.231999999999999 4.9% 0.50621703089675962 Income tax expense Income tax expense 8.4749999999999996 7.9249999999999998 6.1150000000000002 6.9% 0.38593622240392478 Net income Net income $23.504999999999999 $22.556999999999999 $15.117000000000001 4.2% 0.55487199841238344 Diluted earnings per share: EPS-Diluted $0.79 $0.75 $0.5 Selected Balance Sheet Items Loans Loans receivable $6,535.3119999999999 $6,545.4660000000003 $6,305.9570000000003 -0.2% 3.6% Total deposits Deposits 6,955.3419999999996 6,800.6220000000003 6,729.1220000000003 2.3% 3.4% Total assets Total assets 8,001.473 7,839.2269999999999 7,862.3630000000003 2.7% 1.8% Total stockholders' equity Stockholders' equity $812.68 $802.81899999999996 $762.83399999999995 1.2% 6.5% Tangible common equity to tangible assets (2) TCE/TA (2) 0.10032598947592636 0.10114565348133848 9.5754834975772266E-2 -8 45 Performance Metrics Return on average assets Return on average assets 1.198808858672107E-2 1.1766257133770485E-2 7.872145324638799E-3 2 40.999999999999986 Return on average stockholders' equity Return on average equity 0.11093417571323291 0.108581698337903 7.4753299905342199E-2 23 361 Net interest margin Net interest margin 3.3565999999999999E-2 3.3827000000000003E-2 3.0705E-2 -1.9999999999999432 29 Efficiency ratio (1) Efficiency ratio 0.54069999999999996 0.53480000000000005 0.55740000000000001 58.999999999999091 -,167 Quarterly Results (Dollars in thousands, except per share data) As of or for the Three Months Ended Amount Change As of or for the Twelve Months Ended Amount Change Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-26 Q2-26 43,830 43,465 YTD-19 2026 2026 2025 2025 2025 vs. Q1-26 vs. Q2-25 43830 43465 vs. YTD-18 Net income $23,505 $22,557 $21,239 $22,061 $15,117 $948 $8,388 $22,558 62,201.39999999994 $,-39,643.39999999994 Net income per diluted common share $0.79 $0.75 $0.7 $0.73 $0.5 $4.0000000000000036E-2 $0.29000000000000004 $0.75 $2.0499999999999998 $-1.2999999999999998 Assets $8,001,473 $7,839,227 $7,869,185 $7,856,731 $7,862,363 $,162,246 $,139,110 $7,839,227 $7,729,035 $,110,192 Loans $6,535,312 $6,545,466 $6,563,367 $6,528,259 $6,305,957 $,-10,154 $,229,355 $6,545,466 $6,282,189 $,263,277 Deposits $6,955,342 $6,800,622 $6,677,650 $6,766,639 $6,729,122 $,154,720 $,226,220 $6,800,622 $6,619,475 $,181,147 Return on average assets 1.198808858672107E-2 1.1766257133770485E-2 1.0699999999999999E-2 1.1244122367571848E-2 7.872145324638799E-3 2.2183145295058548E-2 0.41159432620822711 2.9013975017472952E-3 8.2506007782759735E-3 -0.5349203276528679 Return on average stockholders' equity 0.11093417571323291 0.108581698337903 0.1014 0.10693543230107649 7.4753299905342199E-2 0.22524773753299115 3.6080875807890718 2.6774756382713559E-2 7.9662298974525134E-2 -5.2887542591811574 Net interest margin 3.3565999999999999E-2 3.3827000000000003E-2 3.2823999999999999E-2 3.2198999999999998E-2 3.0705E-2 -1.6100000000000426E-2 0.28609999999999991 3.3827000000000003E-2 2.7803999999999999E-2 0.60230000000000039 Efficiency ratio (1) 0.54069999999999996 0.53480000000000005 0.54949999999999999 0.52649999999999997 0.55740000000000001 0.58999999999999053 -1.6700000000000048 0.53479781999637599 0.60307050294633446 -6.8272682949958474 Tangible common equity to tangible assets (2) 0.10032598947592636 0.10114565348133848 9.9941411176212636E-2 9.7954165976267257E-2 9.5754834975772266E-2 -8.1966400541212681E-2 0.44711545001540925 0.10114565348133848 9.5938535403713193E-2 0.52071180776252923 Tangible common equity per common share (2) $27.036786736703494 $26.564099997134871 $26.270660102706305 $25.638348229284635 $24.913469285175172 0.48268673956862274 2.1333174515283222 $26.564099997134871 $24.491165664699114 $2.0729343324357572 (1) Noninterest expense divided by net interest income plus noninterest income. (2) Refer to "Non-GAAP Financial Measures" for further details. nothing to change below this line all has formulas Do not include in ER tables Number of days in period--------------------> 91 Jan 31 365 Feb 28 QTD Mar 31 YTD Net income (as reported) 23,505 Apr 30 46,062 Net income (as reported) Annualization factor 4.0109890109890109 May 31 0.49589041095890413 Annualization factor Net income annualized 94,278.296703296699 Jun 30 181 22,841.704109589042 Net income annualized Jul Averge assets 7,864,331 Aug 7,819,850 Averge assets Average equity ,849,858 Sep ,846,204 Average equity Oct Nov ROAA 1.198808858672107E-2 Dec 2.9209900585802852E-3 ROAA ROAE 0.11093417571323291 181 2.6993141263323077E-2 ROAE Efficiency ratio 0.54069999999999996 0.53769999999999996 Efficiency ratio Consolidated Statements of Income Source: Prologue Consolidated YTD IS after GL Close (In thousands, except share and per share data) Three Months Ended DO NOT DELETE Side Calcs (not part of the linked table) 46,203 46,112 Amount Percentage 45,838 Amount Percentage THESE COLUMNS Linked Quarter CYQ vs PYQ 46203 46112 Change Change 45838 Change Change $ Change $ Change Notes (related to the linked table) Interest and dividend income: Last Number Truncated Foot check Interest and fees on loans $94,808 $93,866 942 1.4% $92,589 $2,219 2.4% 6 $0 $1,277 Interest on securities 6,337 5,959 378 6.3% 6,261 76 1.2% 9 0 -,302 Dividends on FHLB stock 219 831 -,612 -0.73646209386281591 354 -,135 -0.38135593220338981 1 0 477 Interest on deposits in other banks 1,958 1,496 462 0.30882352941176472 2,129 -,171 -8.3% 6 0 -,633 Total interest and dividend income ,103,322 ,102,152 1,170 1.1% ,101,333 1,989 1.9628354040638292 2 0 0 819 Interest expense: Interest on deposits 37,774 36,738 1,036 2.8% 41,924 -4,150 -9.9% 8 0 -5,186 Interest on borrowings 154 676 -,522 -0.77218934911242598 684 -,530 -0.77485380116959068 6 0 -8 Interest on subordinated debentures 1,537 1,535 2 .1% 1,586 -49 -3.9% 5 0 -51 Total interest expense 39,465 38,949 516 1.3% 44,194 -4,729 -0.10700547585645111 9 0 0 -5,245 Net interest income before credit loss expense 63,857 63,203 654 1.3% 57,139 6,718 0.11757293617319169 3 0 6,064 Credit loss expense 1,186 2,892 -1,706 -0.58990318118948826 7,631 -6,445 -0.84458131306512907 2 0 -4,739 Net interest income after credit loss expense 62,671 60,311 2,360 3.9% 49,508 13,163 0.26587622202472327 1 0 0 10,803 Noninterest income: Service charges on deposit accounts 2,102 2,127 -25 -1.2% 2,169 -67 -3.9% 7 0 -42 Trade finance and other service charges and fees 1,902 1,501 401 0.26715522984676882 1,461 441 0.30184804928131415 1 0 40 Gain on sale of Small Business Administration (“SBA”) loans 1,318 2,102 -,784 -0.37297811607992387 2,160 -,842 -0.38981481481481484 2 0 -58 Gain on sale of residential mortgage loans 357 485 -,128 -0.26391752577319588 0 357 - 0 485 new Q1 2026 Other operating income 2,669 2,324 345 0.14845094664371772 2,281 388 0.1701008329679965 4 0 43 Total noninterest income 8,348 8,539 -,191 -2.2% 8,071 277 3.4% 4 5 0 468 Noninterest expense: Salaries and employee benefits 22,784 21,956 828 3.8% 22,069 715 3.2% 6 0 -,113 Occupancy and equipment 4,383 4,414 -31 -0.7% 4,344 39 .9% 4 0 70 Data processing 4,555 4,386 169 3.9% 3,727 828 0.22216259726321438 6 0 659 Professional fees 1,997 2,780 -,783 -0.28165467625899282 1,725 272 0.15768115942028985 0 0 1,055 Supplies and communications 491 556 -65 -0.11690647482014388 515 -24 -4.7% 6 0 41 Advertising and promotion 679 688 -9 -1.3% 798 -,119 -0.14912280701754385 8 0 -,110 Other operating expenses 4,150 3,588 562 0.15663322185061315 3,169 981 0.30956137582833704 8 0 419 Total noninterest expense 39,039 38,368 671 1.7% 36,347 2,692 7.4% 8 0 0 2,021 CQ Linked quarter Change Income before tax 31,980 30,482 1,498 4.9% 21,232 10,748 0.50621703089675962 2 0 9,250 Tax rate - current quarter 0.25998950200118104 Gross revenues 71,742 71,178 .8% Income tax expense 8,475 7,925 550 6.9% 6,115 2,360 0.38593622240392478 5 0 1,810 Preprovision revenues 33,374 32,069 4.7% Net income $23,505 $22,557 948 4.2% $15,117 $8,388 0.55487199841238344 -3 4 0 7,440 Tax rate - linked quarter 0.2949943570337914 0 Basic earnings per share: $0.79072810016890305 $0.75521277128846465 $0.5 0 $0.25521277128846465 Diluted earnings per share: $0.79 $0.75 $0.5 0 $0.25 Tax rate - prior year quarter 0.29630072074224506 Weighted-average shares outstanding: Basic 29,514,712.263736263 29,629,130.211111113 29,948,836 0 -,319,705.78888888657 Diluted 29,689,113.59736263 29,808,999.247577779 30,054,456 0 -,245,456.752422221 Common shares outstanding 29,650,306 29,806,694 30,176,568 0 -,369,874 Consolidated Statements of Income, Continued (In thousands, except share and per share data) Twelve Months Ended DO NOT DELETE 46,022 45,657 Percentage THESE COLUMNS 46022 45657 Change Change Interest and dividend income: Last Number Truncated Foot check Interest and fees on loans receivable $93,866 $,366,153 -,272,287 -0.74364268488855756 6 Interest on securities 5,959 21,583 ,-15,624 -0.72390307186211367 9 Dividends on FHLB stock 831 1,436 -,605 -0.42130919220055713 1 Interest on deposits in other banks 1,496 9,611 -8,115 -0.84434502132972633 6 Total interest and dividend income ,102,152 ,398,783 -,296,631 -0.74384063513239029 2 0 Interest expense: Interest on deposits 36,738 ,182,692 -,145,954 -0.79890745079149605 8 Interest on borrowings 676 6,746 -6,070 -0.89979246961162174 6 Interest on subordinated debentures 1,534 6,571 -5,037 -0.76654999239080812 round Q4 2025 4 Total interest expense 38,948 ,196,009 -,157,061 -0.80129483850231364 8 0 Net interest income before credit loss expense 63,204 ,202,774 -,139,570 -0.68830323414244432 4 Credit loss expense 2,892 4,419 -1,527 -0.34555329260013579 2 Net interest income after credit loss expense 60,312 ,198,355 -,138,043 -0.69593909909001539 6 -4 Noninterest income: Service charges on deposit accounts 2,127 9,381 -7,254 -0.77326511032938916 7 Trade finance and other service charges and fees 1,501 5,309 -3,808 -0.71727255603691842 1 Gain on sale of Small Business Administration ("SBA") loans 2,102 6,112 -4,010 -0.65608638743455494 2 Gain on sale of residential mortgage loans 485 485 - new Q1 2026 Other operating income 2,324 10,783 -8,459 -0.78447556338681257 4 Total noninterest income 8,539 31,585 ,-23,046 -0.72965015038784231 4 5 Noninterest expense: Salaries and employee benefits 21,956 83,368 ,-61,412 -0.73663755877554937 6 Occupancy and equipment 4,414 18,146 ,-13,732 -0.75675079907417608 4 Data processing 4,386 14,876 ,-10,490 -0.70516267813928479 6 Professional fees 2,780 6,956 -4,176 -0.60034502587694072 0 Supplies and communications 556 2,261 -1,705 -0.7540911101282618 6 Advertising and promotion 688 3,028 -2,340 -0.77278731836195513 8 Other operating expenses 3,588 12,700 -9,112 -0.71748031496062992 8 Total noninterest expense 38,368 ,141,335 -,102,967 -0.72853150316623627 Income before tax 30,483 88,605.4 ,-58,122.39999999994 -0.65596765150153979 efficiency ratios 8 0 0.53479781999637599 0.60307050294633446 Income tax expense 7,925 26,404 ,-18,479 -0.69985608241175579 3 Net income $22,558 $62,201.39999999994 ,-39,643.39999999994 -0.63733725352502146 tax rates 5 0.25998097300134504 0.2979965925188906 Basic earnings per share: $0.75521277128846465 $2.06 Diluted earnings per share: $0.75 $2.0499999999999998 Weighted-average shares outstanding: Basic 29,629,130.211111113 30,019,815 Diluted 29,808,999.247577779 30,102,336 Common shares outstanding 29,806,694 30,195,999 Consolidated Balance Sheets Source: Prologue Consolidated B/S report ("BS" tab) (In thousands) DO NOT DELETE Side Calcs (not part of the linked table) 46,203 46,112 Percentage 45,838 Percentage THESE COLUMNS Linked quarter CYQ to PYQ 46203 46112 Change Change 45838 Change Change Change Change Assets Last Number Truncated Foot check Cash and due from banks $,331,206 $,254,045 $77,161 0.30372965419512293 $,380,050 $,-48,844 -0.12851993158794894 5 $0 $-,126,005 B/S checks, and Loans to Deposits ratio calc: Securities available for sale, at fair value ,896,610 ,835,725 60,885 7.3% ,918,094 ,-21,484 -2.3% 5 0 ,-82,369 Loans held for sale, at the lower of cost or fair value 16,969 4,932 12,037 2.4405920519059205 49,611 ,-32,642 -0.65795892040071757 2 0 ,-44,679 CQ PQ Change Loans, net of allowance for credit losses 6,464,837 6,474,998 ,-10,161 -0.2% 6,239,201 ,225,636 3.6% 8 0 ,235,797 Loans receivable, net 6,474,998 6,493,465 ,-18,467 Accrued interest receivable 24,613 23,320 1,293 5.5% 23,749 864 3.6% 0 0 -,429 ACL - Loans 70,468 69,903 565 Premises and equipment, net 20,251 20,015 236 1.2% 20,607 -,356 -1.7% 5 0 -,592 Loans receivable, gross 6,545,466 6,563,368 ,-17,902 Customers’ liability on acceptances 116 0 116 - 214 -98 -0.45794392523364486 0 0 -,214 Servicing assets 6,419 6,535 -,116 -1.8% 6,420 -1 .-15576323987538941 5 0 115 Per "ER-Tables" tab 6,545,466 6,563,367 ,-17,901 Goodwill and other intangible assets, net 11,031 11,031 0 0.0% 11,031 0 0.0% 1 0 0 check 0 1 Federal Home Loan Bank (“FHLB”) stock, at cost 16,385 16,385 0 0.0% 16,385 0 0.0% 5 0 0 Bank-owned life insurance 56,048 56,534 -,486 -0.9% 56,985 -,937 -1.6% 4 0 -,451 Deposits 6,800,622 6,677,650 Prepaid expenses and other assets ,156,988 ,135,707 21,281 0.15681578695277326 ,140,016 16,972 0.12121471831790652 7 0 -4,309 Total assets $8,001,473 $7,839,227 $,162,246 2.7% $7,862,363 $,139,110 1.8% 7 0 $0 $,-23,136 Loans to deposits 0.96248049075511033 0.98288589548718486 Liabilities and Stockholders’ Equity Liabilities: Deposits: Noninterest-bearing $2,135,418 $2,030,743 $,104,675 5.2% $2,105,369 $30,049 1.4% 3 $0 $,-74,626 Interest-bearing 4,819,924 4,769,879 50,045 1.5% 4,623,753 ,196,171 4.2% 9 0 ,146,126 Total deposits 6,955,342 6,800,622 ,154,720 2.3% 6,729,122 ,226,220 3.4% 2 0 71,500 Accrued interest payable 27,530 30,592 -3,062 -0.10009152719665272 30,567 -3,037 -9.9% 2 0 25 Bank's liability on acceptances 116 0 116 - 214 -98 -0.45794392523364486 0 0 -,214 Borrowings 0 0 0 - ,127,500 -,127,500 -100.0% 0 0 -,127,500 Subordinated debentures ,130,773 ,130,618 155 .1% ,130,960 -,187 -0.1% 8 0 -,342 Accrued expenses and other liabilities 75,032 74,576 456 .6% 81,166 -6,134 -7.6% 6 0 -6,590 Total liabilities 7,188,793 7,036,408 ,152,385 2.2% 7,099,529 89,264 1.3% 0 8 0 ,-63,121 Stockholders’ equity: Common stock 34 34 0 0.0% 34 0 0.0% 4 0 0 ,381,183,271.2999997 Additional paid-in capital ,596,303 ,595,374 929 .2% ,592,825 3,478 .6% 4 0 2,549 Accumulated other comprehensive (loss) ,-46,552 ,-45,553 -,999 2.2% ,-54,511 7,959 -0.14600722789895618 -3 0 8,958 Retained earnings ,423,499 ,408,327 15,172 3.7% ,367,251 56,248 0.15315955572619272 7 13,992 0 41,076 Less treasury stock -,160,604 -,155,363 -5,241 3.4% -,142,765 ,-17,839 0.1249535950688194 -3 0 ,-12,598 Total stockholders' equity ,812,680 ,802,819 9,861 1.2% ,762,834 49,846 6.5% 9 0 0 39,985 Total liabilities and stockholders’ equity $8,001,473 $7,839,227 $,162,246 2.7% $7,862,363 $,139,110 1.8% 9 -2 $0 $,-23,136 N/M - Not meaningful. 7,912,360 ,796,386 0.10065088039472421 Change (1) ($ in millions, except EPS) $46,203 $46,112 $45,838 Q/Q Y/Y Income Statement Summary Net interest income before credit loss expense Net interest income before credit loss $63.856999999999999 $63.203000000000003 $57.139000000000003 1.3% 0.11757293617319169 Total noninterest income Noninterest income 8.3480000000000008 8.5389999999999997 8.0709999999999997 -2.2% 3.4% Operating revenue 72.204999999999998 71.742000000000004 65.210000000000008 .6% 0.10726882380003055 Total noninterest expense Noninterest expense 39.039000000000001 38.368000000000002 36.347000000000001 1.7% 7.4% Preprovision net revenue 33.165999999999997 33.374000000000002 28.863000000000007 -0.6% 0.14908360184318981 Credit loss expense Credit loss expense 1.1859999999999999 2.8919999999999999 7.6310000000000002 -0.58990318118948826 -0.84458131306512907 Income before tax Pretax income 31.98 30.481999999999999 21.231999999999999 4.9% 0.50621703089675962 Income tax expense Income tax expense 8.4749999999999996 7.9249999999999998 6.1150000000000002 6.9% 0.38593622240392478 Net income Net income $23.504999999999999 $22.556999999999999 $15.117000000000001 4.2% 0.55487199841238344 Diluted earnings per share: EPS-Diluted $0.79 $0.75 $0.5 Selected Balance Sheet Items Loans Loans receivable $6,535.3119999999999 $6,545.4660000000003 $6,305.9570000000003 -0.2% 3.6% Total deposits Deposits 6,955.3419999999996 6,800.6220000000003 6,729.1220000000003 2.3% 3.4% Total assets Total assets 8,001.473 7,839.2269999999999 7,862.3630000000003 2.7% 1.8% Total stockholders' equity Stockholders' equity $812.68 $802.81899999999996 $762.83399999999995 1.2% 6.5% Tangible common equity to tangible assets (2) TCE/TA (2) 0.10032598947592636 0.10114565348133848 9.5754834975772266E-2 -8 45 Performance Metrics Return on average assets Return on average assets 1.198808858672107E-2 1.1766257133770485E-2 7.872145324638799E-3 2 40.999999999999986 Return on average stockholders' equity Return on average equity 0.11093417571323291 0.108581698337903 7.4753299905342199E-2 23 361 Net interest margin Net interest margin 3.3565999999999999E-2 3.3827000000000003E-2 3.0705E-2 -1.9999999999999432 29 Efficiency ratio (1) Efficiency ratio 0.54069999999999996 0.53480000000000005 0.55740000000000001 58.999999999999091 -,167 Quarterly Results (Dollars in thousands, except per share data) As of or for the Three Months Ended Amount Change As of or for the Twelve Months Ended Amount Change Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Q2-26 Q2-26 43,830 43,465 YTD-19 2026 2026 2025 2025 2025 vs. Q1-26 vs. Q2-25 43830 43465 vs. YTD-18 Net income $23,505 $22,557 $21,239 $22,061 $15,117 $948 $8,388 $22,558 62,201.39999999994 $,-39,643.39999999994 Net income per diluted common share $0.79 $0.75 $0.7 $0.73 $0.5 $4.0000000000000036E-2 $0.29000000000000004 $0.75 $2.0499999999999998 $-1.2999999999999998 Assets $8,001,473 $7,839,227 $7,869,185 $7,856,731 $7,862,363 $,162,246 $,139,110 $7,839,227 $7,729,035 $,110,192 Loans $6,535,312 $6,545,466 $6,563,367 $6,528,259 $6,305,957 $,-10,154 $,229,355 $6,545,466 $6,282,189 $,263,277 Deposits $6,955,342 $6,800,622 $6,677,650 $6,766,639 $6,729,122 $,154,720 $,226,220 $6,800,622 $6,619,475 $,181,147 Return on average assets 1.198808858672107E-2 1.1766257133770485E-2 1.0699999999999999E-2 1.1244122367571848E-2 7.872145324638799E-3 2.2183145295058548E-2 0.41159432620822711 2.9013975017472952E-3 8.2506007782759735E-3 -0.5349203276528679 Return on average stockholders' equity 0.11093417571323291 0.108581698337903 0.1014 0.10693543230107649 7.4753299905342199E-2 0.22524773753299115 3.6080875807890718 2.6774756382713559E-2 7.9662298974525134E-2 -5.2887542591811574 Net interest margin 3.3565999999999999E-2 3.3827000000000003E-2 3.2823999999999999E-2 3.2198999999999998E-2 3.0705E-2 -1.6100000000000426E-2 0.28609999999999991 3.3827000000000003E-2 2.7803999999999999E-2 0.60230000000000039 Efficiency ratio (1) 0.54069999999999996 0.53480000000000005 0.54949999999999999 0.52649999999999997 0.55740000000000001 0.58999999999999053 -1.6700000000000048 0.53479781999637599 0.60307050294633446 -6.8272682949958474 Tangible common equity to tangible assets (2) 0.10032598947592636 0.10114565348133848 9.9941411176212636E-2 9.7954165976267257E-2 9.5754834975772266E-2 -8.1966400541212681E-2 0.44711545001540925 0.10114565348133848 9.5938535403713193E-2 0.52071180776252923 Tangible common equity per common share (2) $27.036786736703494 $26.564099997134871 $26.270660102706305 $25.638348229284635 $24.913469285175172 0.48268673956862274 2.1333174515283222 $26.564099997134871 $24.491165664699114 $2.0729343324357572 (1) Noninterest expense divided by net interest income plus noninterest income. (2) Refer to "Non-GAAP Financial Measures" for further details. nothing to change below this line all has formulas Do not include in ER tables Number of days in period--------------------> 91 Jan 31 365 Feb 28 QTD Mar 31 YTD Net income (as reported) 23,505 Apr 30 46,062 Net income (as reported) Annualization factor 4.0109890109890109 May 31 0.49589041095890413 Annualization factor Net income annualized 94,278.296703296699 Jun 30 181 22,841.704109589042 Net income annualized Jul Averge assets 7,864,331 Aug 7,819,850 Averge assets Average equity ,849,858 Sep ,846,204 Average equity Oct Nov ROAA 1.198808858672107E-2 Dec 2.9209900585802852E-3 ROAA ROAE 0.11093417571323291 181 2.6993141263323077E-2 ROAE Efficiency ratio 0.54069999999999996 0.53769999999999996 Efficiency ratio
NET INTEREST INCOME | NET INTEREST MARGIN ($ in millions) Net interest income for the second quarter was $63.9 million and net interest margin (taxable equivalent) was 3.36%. Net Interest Margin Includes a $0.6 million interest recovery from a previously charged-off loan; represents approximately 3 bps of net interest margin Includes a $0.2 million interest recovery from a previously charged-off loan and loans returned to accruing status; represents approximately 2 bps of net interest margin Includes a $0.5 million special FHLB dividend; represents approximately 2 bps of net interest margin (1) (1) (2) (2) (3) (3) (3)
NET INTEREST INCOME SENSITIVITY Fed Funds Rate(3) Rate on CDs(4) Numbers may not add due to rounding. Yield for loans and rate on interest-bearing deposits represent monthly average yield and rate, respectively. Fed funds rate represents the upper target rate at the end of the month. Beta is measured monthly between August 2024, when the fed funds rate was 5.50%, and August 2025, when the fed funds rate was 4.50%, and between August 2025, when the fed funds rate was 4.50%, and June 2026, when the fed funds rate was 3.75%. Average rates on CDs and interest bearing-deposits for the month of June 2026 were 3.64% and 3.17%, respectively. Fed funds rate represents the upper-target rate at the end of the quarter. Represent weighted average contractual rates. Fed Funds Rate Yield for Loans Rate on Interest-bearing deposits Loan & Deposit Beta(1) Fed Funds Rate & Rate on CDs Rate on CDs(2) Deposits – CD Maturities （$ in millions） Time Horizon: Change in the Fed Funds Rate: Deposit Beta: Aug 24 – Aug 25 -100 bps 71% Aug 25 – Jun 26 -75 bps 55%
NONINTEREST INCOME Numbers may not add due to rounding. Includes $0.4 million, $0.9 million, $0.3 million, and $0.5 million in BOLI death benefits for 2Q25, 3Q25, 1Q26, and 2Q26, respectively. 4Q25, 1Q26, and 2Q26 each had one mortgage loan sale transaction. 2Q25 and 3Q25 had zero and two transactions, respectively. Noninterest income for the second quarter was $8.3 million, down 2.2% from the first quarter, primarily due to a $0.8 million decrease in gain on sale of SBA loans. Noninterest Income（$ in millions） 2Q26 Service Charges, Fees & Other（$ in millions） SBA 7(a) Loan Production and Sales （$ in millions） (1) (1) (2) (1) (1)
NONINTEREST EXPENSE Includes a $0.6 million and $0.8 million gain from the sale of OREO properties in 2Q25 and 1Q26, respectively. Noninterest expense was $39.0 million for the second quarter, up 1.7% from the first quarter, principally due to an increase in salaries and benefits from an additional business day in the second quarter and annual merit increases. Noninterest expense / Average assets (annualized) ($ in millions) (1) (1)
Balance Sheet Composition and Trends
$6.54 Billion Loan Portfolio (as of June 30, 2026) LOAN PORTFOLIO Note: Numbers may not add due to rounding. Includes syndicated loans of $572.1 million in total commitments ($474.6 million disbursed) across C&I ($471.3 million committed and $389.0 million disbursed) and CRE ($100.8 million committed and $85.6 million disbursed) CRE is a combination of Investor (non-owner), Owner Occupied, Multifamily, and Construction. Investor (or non-owner occupied) property is where the investor (borrower) does not occupy the property. The primary source of repayment stems from the rental income associated with the respective properties. Owner Occupied property is where the borrower owns and occupies the property. The primary source of repayment is the cash flows from the ongoing operations and activities conducted by the borrower/owner. Multifamily real estate is a residential property that has 5 or more housing units. Residential real estate is a loan (mortgage) secured by a single-family residence, including one to four units (duplexes, triplexes, and fourplexes). RRE also includes $0.8 million of HELOCs and $5.0 million in consumer loans. Weighted average LTV and weighted average DCR calculated when the loan was first underwritten or renewed subsequently. $84.0 million, or 18.3%, of the CRE multifamily loans are rent-controlled in New York City. Includes $234.2 million of loans to nondepository financial institutions (NDFI), principally mortgage credit intermediaries. Outstanding ($ in millions) 2Q26 Average Yield Commercial Real Estate (CRE)(1,2) Portfolio $4,022 5.76% Residential Real Estate (RRE)(3) Portfolio $979 5.40% Commercial & Industrial (C&I)(1,6) Portfolio $1,171 6.57% Equipment Finance Portfolio $363 6.80% # of Loans Weighted Average Loan-to-Value Ratio(4) Weighted Average Debt Coverage Ratio(4) CRE(2) Investor (non-owner) 834 48.7% 2.05x CRE(2) Owner Occupied 734 46.3% 2.68x CRE(2,5) Multifamily 159 55.8% 1.73x
($ in millions) <1 Year 1-3 Years >3 Years Total Real Estate Loans Retail $ 267.7 $ 399.7 $ 525.8 $ 1,193.2 Hospitality 234.8 268.3 355.5 858.6 Office 208.7 204.7 65.7 479.1 Other 325.3 510.3 642.0 1,477.7 Commercial Property $ 1,036.5 $ 1,383.0 $ 1,589.0 $ 4,008.6 Construction 13.8 - - 13.8 RRE/Consumer 4.7 0.1 974.2 978.9 Total Real Estate Loans $ 1,054.9 $ 1,383.1 $ 2,563.2 $ 5,001.2 C&I(1) 426.1 236.4 508.8 1,171.3 Equipment Finance 36.1 166.3 160.5 362.8 Loans Receivable $ 1,517.1 $ 1,785.8 $ 3,232.5 $ 6,535.3 LOAN PORTFOLIO MATURITIES Note: numbers may not add due to rounding. $361.8 million of C&I are lines of credit expected to be renewed and maintain a maturity of less than one year.
LOAN PORTFOLIO DIVERSIFICATION $120.0 million, or 3.0%, and $34.9 million, or 0.9%, of the CRE portfolio are unguaranteed and guaranteed SBA loans, respectively. $63.8 million, or 5.5%, and $47.7 million, or 4.1%, of the C&I portfolio are unguaranteed and guaranteed SBA loans, respectively. CRE Portfolio(1) $4,022M C&I Portfolio(2) $1,171M CRE(1) represents 62% of the total portfolio C&I(2) represents 18% of the total portfolio.
CRE Composition by State $4,022 CRE PORTFOLIO GEOGRAPHICAL EXPOSURE Construction by State $14 Owner Occupied by State $878 Investor (Non-owner Occupied) by State $2,671 Multifamily by State $459 ($ in millions)
Average Interest-bearing Deposits DEPOSIT PORTFOLIO Total deposits increased 2.3% to $6.96 billion, from the prior quarter. Noninterest-bearing demand deposits represented 30.7% of total deposits at June 30, 2026. Estimated uninsured deposit liabilities were 43.4% of deposits. Brokered deposits were 1.3% of deposits. Note: Numbers may not add due to rounding. Deposits ($ in millions) ($ in millions)
SECURITIES PORTFOLIO $962 Million 3.5 Years $387 Million $66 Million Note: Numbers may not add due to rounding. Based on the book value. 98.0% constitutes CRA bonds. 2026 year-to-date observed $158.9 million of principal paydown and $14.6 million of interest payments. (2) The $962.3 million securities portfolio (all AFS, no HTM) represented 12% of assets at June 30, 2026, and had a weighted average modified duration of 3.5 years with $65.6 million in an unrealized loss position. Principal Paydowns(3)（$ in millions） Available for Sale(1) Unrealized Loss US Agy Residential MBS Maturity Securities Duration (3)
Asset Quality
ASSET QUALITY – DELINQUENT & CRITICIZED LOANS Delinquent loans / Total loans Criticized loans / Total loans Note: Numbers may not add due to rounding. Represents loans 30 to 89 days past due and still accruing. Includes nonaccrual loans of $24.1 million, $19.4 million, $18.1 million, $12.4 million, and $9.9 million as of 2Q25, 3Q25, 4Q25, 1Q26, and 2Q26, respectively. Includes a CRE loan designated nonaccrual of $11.0 million, $10.6 million and $10.2 million for 2Q25 and 3Q25, and 4Q25, respectively. Includes a C&I relationship in the retail industry of $12.2 million, $11.8 million, $11.6 million, $11.4 million, and $11.2 million for 2Q25, 3Q25, 4Q25, 1Q26, and 2Q26, respectively. Includes a CRE loan of $55.0 million, $54.8 million, and $54.5 million in the hospitality industry for 4Q25, 1Q26, and 2Q26, respectively. Includes a CRE loan in the retail industry of $21.2 million for both 1Q26 and 2Q26. (3) (3) The $19.5 million increase in delinquent loans in the second quarter was primarily driven by a $21.2 million commercial real estate retail loan. Delinquent Loans(1)（$ in millions） Criticized Loans(2)（$ in millions） (3) (4) (3) (4) (4,5) (6) (4, 5, 6) (4, 5) (6)
Nonperforming assets were $9.9 million at the end of the second quarter, down 20.2% from $12.4 million at the end of the first quarter. ASSET QUALITY – NONPERFORMING ASSETS & NONACCRUAL LOANS Nonperforming assets exclude repossessed personal property of $0.6 million, $0.4 million, $0.6 million, $0.3 million, and $0.3 million for 2Q25, 3Q25, 4Q25, 1Q26, and 2Q26, respectively. Specific allowance for credit losses for 2Q25, 3Q25, 4Q25, 1Q26, and 2Q26 was $4.1 million, $4.4 million, $3.4 million, $3.2 million, and $2.6 million, respectively. Residential real estate includes consumer loans. Represents a CRE loan with a balance of $10.2 million, $0.3 million, and $0.3 million at 4Q25, 1Q26, and 2Q26, respectively. Note: Numbers may not add due to rounding. (2) (3) (2) (2) (2) (2) Nonperforming Assets(1)（$ in millions） Nonaccrual Loans（$ in millions） (4) Nonperforming assets / Total assets
ASSET QUALITY – GROSS & NET LOAN CHARGE-OFFS Note: Numbers may not add due to rounding. Net charge-offs for the second quarter were $1.3 million, or 8 bps annualized. Gross Charge-offs（$ in millions） Net Charge-offs (Recoveries)（$ in millions） (2) Includes a $2.0 million recovery on a loan previously charged-off in 3Q25. Includes an $8.6 million commercial real estate loan charge-off. Net Charge-offs / Average loans (1) (1) (2)
The allowance for credit losses was $70.5 million at June 30, 2026, or 1.08% of total loans, unchanged from the prior quarter. Allowance for Credit Losses（$ in millions） Credit Loss Expense（$ in millions） ACL TREND
ACL ANALYSIS BY LOAN TYPE Note: Numbers may not add due to rounding. ($ in millions) $46,203 $46,112 $46,022 $45,930 $45,838 Allowance Loans Allowance Loans Allowance Loans Allowance Loans Allowance Loans CRE $37.4 $4,022.3 $36.799999999999997 $3,998.1 $38.700000000000003 $4,030.1 $40.200000000000003 $4,015.3 $37.5 $3,948.9 C&I 8.6999999999999993 1,171.3 8.8000000000000007 1,152.5999999999999 7.8 1,074.9000000000001 7.3 1,052.5 6.9 918 Equipment Finance 12.7 362.8 11.6 392.6 10.4 408.5 11 416.9 11.8 445.2 RRE & Consumer 11.7 978.9 13.3 1,002.2 13 1,049.9000000000001 11.3 1,043.5999999999999 10.6 993.9 Total $70.5 $6,535.3 $70.5 $6,545.5 $69.900000000000006 $6,563.4 $69.8 $6,528.2999999999993 $66.8 $6,306
Capital and Liquidity
RISK MANAGEMENT CRE Concentration Hanmi has not exceeded the supervisory criteria to be considered to have CRE concentration risk under regulatory guidance(1); however, Hanmi’s risk management practices address the six elements of regulatory guidance(2) Source: FDIC Financial Institution Letters (FIL-64-2023), as of December 18, 2023; also total ADC (Acquisition, Development, and Construction) loans are well below 100% of Bank’s total capital for all periods presented Six elements of regulatory guidance – (1) maintain strong capital levels, (2) ensure that credit loss allowances are appropriate, (3) manage construction and development (C&D) and CRE loan portfolios closely, (4) maintain updated financial and analytical information, (5) bolster the loan workout infrastructure, (6) maintain adequate liquidity and diverse funding sources Liquidity stress test based on deposits at March 31, 2026. Severe stress scenario makes the following stress assumptions: (a) 22% deposit outflow in month one of the 12-month forecast, (b) Bank unable to replace wholesale deposits, (c) federal fund lines cut off, and (d) reduced loan and securities collateral-based FHLB and FRB borrowing capacity; and the relief scenario constitutes drawing down borrowings from the FHLB. Capital ratios at December 31, 2025 for the Company. 2026 CCAR makes the following assumptions: (a) trough real GDP growth declining by 5.4%, (b) peak unemployment rate reaching 10.0%, (c) housing prices declining by 30.0%, and (d) CRE valuations declining by 39.0% Liquidity Stress Test Hanmi’s risk management practices include comprehensive contingency funding plans intended to plan for funding needs in scenarios of liquidity shortfall. Management performs the test quarterly. The recent stress test indicates that the Bank could withstand a severe stress(3) scenario and remain above policy minimums Capital Stress Test Hanmi is not required to perform a capital stress test; however, Hanmi’s risk management practices include an annual capital stress test for the Company and the Bank using applicable CCAR assumptions(4) Month 1: Stress test begins; Month 12: Stress test ends
REGULATORY CAPITAL Pro forma illustrates capital ratios with unrealized AFS securities losses at June 30, 2026. Non-GAAP financial measure; refer to the non-GAAP reconciliation slide. (1) (1) Company Bank The Company exceeded regulatory minimums and the Bank remained “well capitalized” at June 30, 2026. “ ”
LIQUIDITY Rate at June 30, 2026, based on 3-month SOFR + 166 bps. Issued in August 2021 and due in September 2031. The interest rate is fixed at 3.75% for 5 years. The rate resets quarterly commencing September 1, 2026 to the 3-month SOFR + 310 bps. Liquidity Position（$ in millions） Cash & Securities at Company-only （$ in millions） Company-only Subordinated Debentures （$ in millions） Liquidity Ratios Balance % of Assets Cash & cash equivalents $ 331 4.2% Securities (unpledged) 850 10.7% Loans held for sale 17 0.2% Liquid Assets 1,198 15.1% FHLB available borrowing capacity 1,441 18.1% FRB discount window borrowing capacity 858 10.8% Federal funds lines (unsecured) available 140 1.8% Secondary Liquidity Sources 2,439 30.7% Bank Liquidity (Liquid Assets + Secondary Liquidity) $ 3,637 45.7% Balance Cash $ 8 Securities (AFS) 46 $ 54 Amortized Par Cost Rate 2036 Trust Preferred Securities $ 27 $ 22 5.33% 2031 Subordinated Debt 110 109 3.75% $ 137 $ 131 The Bank and the Company had ample liquidity resources at June 30, 2026. (1) (2)
(1) (1) Non-GAAP financial measure, refer to the non-GAAP reconciliation slides. Includes shares purchased to satisfy employees’ tax liabilities upon the vesting of stock-based compensation of $0.4 million, $1.1 million, and $0.4 million for 2Q25, 1Q26, and 2Q26, respectively. “Net Income – Retained” is equal to net income minus dividend payout and share repurchases. CAPITAL MANAGEMENT TCE / TA(1) (3) Due to prudent capital management, while driving stockholder return through stable quarterly dividends and the share repurchase program, tangible book value per share (TBVPS)(1) increased 1.8% to $27.04 at the end of the second quarter. TBVPS(1) & TCE/TA(1) Dividends, Share Repurchases & TCE/TA(1)（$ in millions） (2)
Note: Numbers may not add due to rounding For illustrative purposes, assumes the completion of a $55 million subordinated debt offering with a 1.25% placement fee and $250 thousand of fixed offering costs and the redemption of $110 million of subordinated notes due 2031, in each case as of June 30, 2026 Hanmi Financial Corporation (1) PRO FORMA CAPITAL RATIOS
For illustrative purposes, assumes the completion of a $55 million subordinated debt offering with a 1.25% placement fee and $250 thousand of fixed offering costs and the redemption of $110 million of subordinated notes due 2031, in each case as of June 30, 2026 Excludes amortization of unamortized issuance cost for 2031 and proposed 2036 subordinated notes and unaccreted discount for 2036 junior subordinated notes Illustrative subordinated debt coupon of 6.25% PRO FORMA DOUBLE LEVERAGE & DEBT SERVICE COVERAGE
Non-GAAP Reconciliation
NON-GAAP RECONCILIATION: TANGIBLE COMMON EQUITY TO TANGIBLE ASSET RATIO There were no preferred shares outstanding at the periods indicated. (In thousands, except share, per share data and ratios) June 30, March 31, December 31, September 30, June 30, Hanmi Financial Corporation 46203 46112 46022 45930 45838 Assets $8,001,473 $7,839,227 $7,869,185 $7,856,731 $7,862,363 Less goodwill and other intangible assets ,-11,031 ,-11,031 ,-11,031 ,-11,031 ,-11,031 Tangible assets $7,990,442 $7,828,196 $7,858,154 $7,845,700 $7,851,332 Stockholders' equity (1) $,812,680 $,802,819 $,796,386 $,779,550 $,762,834 Less goodwill and other intangible assets ,-11,031 ,-11,031 ,-11,031 ,-11,031 ,-11,031 Tangible stockholders' equity (1) $,801,649 $,791,788 $,785,355 $,768,519 $,751,803 Add AFS securities AOCI 46,552 45,570 43,277 48,004 54,541 Tangible stockholders' equity without AFS securities AOCI (1) $,848,201 $,837,358 $,828,632 $,816,523 $,806,344 Stockholders' equity to assets 0.1016 0.1024 0.1012 9.9199999999999997E-2 9.7000000000000003E-2 Tangible common equity to tangible assets (TCE/TA) (1) 0.1003 0.1011 9.9900000000000003E-2 9.8000000000000004E-2 9.5799999999999996E-2 TCE/TA (w/o AFS securities AOCI) (1) 0.1062 0.107 0.10539999999999999 0.1041 0.1027 Common shares outstanding 29,650,306 29,806,694 29,894,757 29,975,371 30,176,568 Tangible common equity per common share $27.04 $26.56 $26.27 $25.64 $24.91 (In thousands, except share, per share data and ratios) June 30, March 31, December 31, September 30, June 30, Hanmi Financial Corporation 46203 46112 46022 45930 45838 Assets $8,001,473 $7,839,227 $7,869,185 $7,856,731 $7,862,363 Less goodwill and other intangible assets ,-11,031 ,-11,031 ,-11,031 ,-11,031 ,-11,031 Tangible assets $7,990,442 $7,828,196 $7,858,154 $7,845,700 $7,851,332 Stockholders' equity (1) $,812,680 $,802,819 $,796,386 $,779,550 $,762,834 Less goodwill and other intangible assets ,-11,031 ,-11,031 ,-11,031 ,-11,031 ,-11,031 Tangible stockholders' equity (1) $,801,649 $,791,788 $,785,355 $,768,519 $,751,803 Add AFS securities AOCI 46,552 45,570 43,277 48,004 54,541 Tangible stockholders' equity without AFS securities AOCI (1) $,848,201 $,837,358 $,828,632 $,816,523 $,806,344 Stockholders' equity to assets 0.1016 0.1024 0.1012 9.9199999999999997E-2 9.7000000000000003E-2 Tangible common equity to tangible assets (TCE/TA) (1) 0.1003 0.1011 9.9900000000000003E-2 9.8000000000000004E-2 9.5799999999999996E-2 TCE/TA (w/o AFS securities AOCI) (1) 0.1062 0.107 0.10539999999999999 0.1041 0.1027 Common shares outstanding 29,650,306 29,806,694 29,894,757 29,975,371 30,176,568 Tangible common equity per common share $27.04 $26.56 $26.27 $25.64 $24.91
NON-GAAP RECONCILIATION: PRO FORMA REGULATORY CAPITAL Note: numbers may not add due to rounding Pro forma capital ratios at June 30, 2026. ($ in thousands) Company(1) Bank(1) Common Equity Tier 1 Tier 1 Total Risk-based Common Equity Tier 1 Tier 1 Total Risk-based Regulatory capital $,836,297 $,858,231 $1,041,195 $,912,635 $,912,635 $,985,599 Unrealized loss on AFS securities ,-46,552 ,-46,552 ,-46,552 ,-46,443 ,-46,443 ,-46,443 Adjusted regulatory capital $,789,745 $,811,679 $,994,643 $,866,192 $,866,192 $,939,156 Risk weighted assets $6,808,155 $6,808,155 $6,808,155 $6,808,585 $6,808,585 $6,808,585 Risk weighted assets impact of unrealized losses on AFS securities -8,561 -8,561 -8,561 -8,976 -8,976 -8,976 Adjusted Risk weighted assets $6,799,594 $6,799,594 $6,799,594 $6,799,609 $6,799,609 $6,799,609 Regulatory capital ratio as reported 0.12280000000000001 0.12609999999999999 0.15290000000000001 0.13400000000000001 0.13400000000000001 0.14480000000000001 Impact of unrealized losses on AFS securities -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.66 Pro forma regulatory capital ratio 0.11610000000000001 0.11939999999999999 0.1462 0.1273 0.1273 0.13820000000000002 ($ in thousands) Company(1) Bank(1) Common Equity Tier 1 Tier 1 Total Risk-based Common Equity Tier 1 Tier 1 Total Risk-based Regulatory capital $,836,297 $,858,231 $1,041,195 $,912,635 $,912,635 $,985,599 Unrealized loss on AFS securities ,-46,552 ,-46,552 ,-46,552 ,-46,443 ,-46,443 ,-46,443 Adjusted regulatory capital $,789,745 $,811,679 $,994,643 $,866,192 $,866,192 $,939,156 Risk weighted assets $6,808,155 $6,808,155 $6,808,155 $6,808,585 $6,808,585 $6,808,585 Risk weighted assets impact of unrealized losses on AFS securities -8,561 -8,561 -8,561 -8,976 -8,976 -8,976 Adjusted Risk weighted assets $6,799,594 $6,799,594 $6,799,594 $6,799,609 $6,799,609 $6,799,609 Regulatory capital ratio as reported 0.12280000000000001 0.12609999999999999 0.15290000000000001 0.13400000000000001 0.13400000000000001 0.14480000000000001 Impact of unrealized losses on AFS securities -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.67000000000000002 -0.66 Pro forma regulatory capital ratio 0.11610000000000001 0.11939999999999999 0.1462 0.1273 0.1273 0.13820000000000002
NON-GAAP RECONCILIATION: PREPROVISION NET REVENUE (In thousands) Percentage Change 46,203 46,112 46,022 45,930 45,838 Q2-26 Q2-26 Hanmi Financial Corporation 46203 46112 46022 45930 45838 vs. Q1-26 vs. Q2-25 Net income $23,505 $22,557 $21,239 $22,061 $15,117 Add back: Credit loss expense 1,186 2,892 1,943 2,145 7,631 Income tax expense 8,475 7,925 8,887 9,396 6,115 Preprovision net revenue $33,166 $33,374 $32,069 $33,602 $28,863 -0.6% 0.14899999999999999 (In thousands) Percentage Change 46,203 46,112 46,022 45,930 45,838 Q2-26 Q2-26 Hanmi Financial Corporation 46203 46112 46022 45930 45838 vs. Q1-26 vs. Q2-25 Net income $23,505 $22,557 $21,239 $22,061 $15,117 Add back: Credit loss expense 1,186 2,892 1,943 2,145 7,631 Income tax expense 8,475 7,925 8,887 9,396 6,115 Preprovision net revenue $33,166 $33,374 $32,069 $33,602 $28,863 -0.6% 0.14899999999999999
Exhibit 99.2
NEWS RELEASE
Hanmi Announces Completion of $55.0 Million Subordinated Debt Offering
LOS ANGELES – July 30, 2026 – Hanmi Financial Corporation (NASDAQ: HAFC, or the “Company”), the parent company of Hanmi Bank (the “Bank”), today announced the closing of a $55.0 million private placement of fixed-to-floating rate subordinated notes. The Company plans to use the net proceeds to redeem its outstanding $110.0 million of callable subordinated notes and for general corporate purposes.
The notes have a maturity date of July 31, 2036, and carry a fixed rate of interest of 6.50% for the first five years. Thereafter, the notes will pay interest at a floating rate, reset quarterly, equal to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 234 basis points. The notes may be redeemed at the option of the Company, without penalty, on July 31, 2031 and any interest payment date thereafter, or earlier upon certain specified events. The notes have been structured to qualify as Tier 2 capital for regulatory purposes.
D.A. Davidson & Co. served as sole placement agent for the private offering. The Company was advised by Luse Gorman, PC and D.A. Davidson & Co. was advised by Manatt, Phelps & Phillips, LLP.
The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches, five loan production offices and three loan centers in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
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Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:
| • | a failure to maintain adequate levels of capital and liquidity to support our operations; |
| • | general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions; |
| • | volatility and deterioration in the credit and equity markets; |
| • | changes in investor sentiment or consumer spending, borrowing and savings habits; |
| • | availability of capital from private and government sources; |
| • | demographic changes; |
| • | competition for loans and deposits and failure to attract or retain loans and deposits; |
| • | inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding; |
| • | our ability to enter new markets successfully and capitalize on growth opportunities; |
| • | the current or anticipated impact of military conflict, terrorism or other geopolitical events; |
| • | the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams; |
| • | risks of natural disasters; |
| • | legal proceedings and litigation brought against us; |
| • | risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors; |
| • | failure to maintain current technologies; |
| • | risks associated with Small Business Administration loans; |
| • | failure to attract, develop, or retain key employees; |
| • | our ability to access cost-effective funding; |
| • | the imposition of tariffs or other domestic or international governmental policies, trade restrictions, and any retaliatory measures impacting our borrowers and the broader economy; |
| • | the impact of a potential federal government shutdown, which may impact on our ability to effect sales of Small Business Administration loans or debt ceiling impasses or fiscal uncertainty; |
| • | changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; |
| • | fluctuations in real estate values; |
| • | changes in accounting policies and practices; |
| • | changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; |
| • | the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests; |
| • | strategic transactions we may enter into, including the costs associated with the evaluation of any strategic opportunities and the overall effects of any acquisitions or dispositions we may make; |
| • | the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses; |
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| • | our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; |
| • | changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements; |
| • | our ability to control expenses; |
| • | the inability of third-party service providers to perform their obligations to us; and |
| • | the ability of the Company to withstand disruptions that may be caused by any failure of the operational systems of third parties. |
In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.
Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636
Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251
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