UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number

001-31830

CATHAY GENERAL BANCORP

(Exact name of registrant as specified in its charter)

Delaware

95-4274680

(State of other jurisdiction of incorporation

or organization)

(I.R.S. Employer

Identification No.)

777 North Broadway, Los Angeles, California		90012
(Address of principal executive offices)		Zip Code)

Registrant's telephone number, including area code:

(213) 625-4700

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock	CATY	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒		Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock, $0.01 par value, 6968,~~093~~036,~~418~~614 shares outstanding as of ~~July~~October 31, 2025.

Table of Contents

CATHAY GENERAL BANCORP AND SUBSIDIARIES

~~2ND~~3RD QUARTER 2025 REPORT ON FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		2
Item 1.	FINANCIAL STATEMENTS (Unaudited)	2
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)	7
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	47
Item 4.	CONTROLS AND PROCEDURES	48
PART II – OTHER INFORMATION		48
Item 1.	LEGAL PROCEEDINGS	48
Item 1A.	RISK FACTORS	48
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	48
Item 3.	DEFAULTS UPON SENIOR SECURITIES	49
Item 4.	MINE SAFETY DISCLOSURES	49
Item 5.	OTHER INFORMATION	49
Item 6.	EXHIBITS	49
SIGNATURES		50

Table of Contents

Forward-Looking Statements

In this Quarterly Report on Form 10-Q, the term “Bancorp” refers to Cathay General Bancorp and the term “Bank” refers to Cathay Bank. The terms “Company,” “we,” “us,” and “our” refer to Bancorp and the Bank collectively.

The statements in this report include forward-looking statements within the meaning of the applicable provisions of the Private Securities Litigation Reform Act of 1995 regarding management’s beliefs, projections, and assumptions concerning future results and events. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements in these provisions. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including statements about anticipated future operating and financial performance, financial position and liquidity, growth opportunities and growth rates, growth plans, acquisition and divestiture opportunities, business prospects, strategic alternatives, business strategies, financial expectations, regulatory and competitive outlook, loan and deposit growth, investment and expenditure plans, financing needs and availability, level of nonperforming assets, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as “aims,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “optimistic,” “plans,” “potential,” “possible,” “predicts,” “projects,” “seeks,” “shall,” “should,” “will,” and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by us are based on estimates, beliefs, projections, and assumptions of management and are not guarantees of future performance. These forward-looking statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from our historical experience and our present expectations or projections. Such risks, uncertainties and other factors include, but are not limited to:

●

local, regional, national and international economic and market conditions and events and the impact they may have on us, our clients and our operations, assets and liabilities;

●

possible additional provisions for loan losses and charge-offs;

●

credit risks of lending activities and deterioration in asset or credit quality;

●

extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities;

●

increased costs of compliance and other risks associated with changes in regulation;

●

higher capital requirements from the implementation of the Basel III capital standards;

●

compliance with the Bank Secrecy Act and other money laundering statutes and regulations;

●

potential goodwill impairment;

●

liquidity risk;

●

fluctuations in interest rates;

●

risks associated with acquisitions and the expansion of our business into new markets;

●

inflation and deflation;

●

real estate market conditions and the value of real estate collateral;

●

environmental liabilities;

●

our ability to generate anticipated returns from our investments and/or financings in certain tax advantaged-projects;

●

our ability to compete with larger competitors;

●

our ability to retain key personnel;

●

successful management of reputational risk;

●

natural disasters, public health crises (including the occurrence of a contagious disease or illness) and geopolitical events;

	●	potential for new or increased tariffs or trade restrictions;
	●	failures, interruptions, or security breaches of our information systems;

●

our ability to adapt our systems to the expanding use of technology in banking;

●

risk management processes and strategies;

●

adverse results in legal proceedings;

●

the impact of regulatory enforcement actions, if any;

●

certain provisions in our charter and bylaws that may affect acquisition of the Company;

●

changes in accounting standards or tax laws and regulations;

●

market disruption and volatility;

●

fluctuations in the Bancorp’s stock price;

●

restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure;

●

issuances of preferred stock;

●

capital level requirements and successfully raising additional capital, if needed, and the resulting dilution of interests of holders of Bancorp common stock; and

●

the soundness of other financial institutions.

These and other factors are further described in Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 (Item 1A in particular), other reports and registration statements filed with the Securities and Exchange Commission (“SEC”), and other filings Bancorp makes with the SEC from time to time. Actual results in any future period may also vary from the past results discussed in this report. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. We have no intention and undertake no obligation to update any forward-looking statement or to announce publicly any revision of any forward-looking statement to reflect developments, events, occurrences or circumstances after the date of such statement, except as required by law.

Bancorp’s filings with the SEC are available at the website maintained by the SEC at http://www.sec.gov, or by request directed to Cathay General Bancorp, 9650 Flair Drive, El Monte, California 91731, Attention: Investor Relations (626) 279-3296.

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (Unaudited)

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30, 2025			December 31, 2024
	September 30, 2025			December 31, 2024
	(In thousands, except share data)
	($ In thousands, except share data)
Assets
Cash and due from banks	$	~~190~~166,~~011~~167		$	157,167
Short-term investments and interest-bearing deposits		1,~~056~~141,~~964~~886			882,353
Securities available-for-sale (amortized cost of $1,746,703 at June 30, 2025, and $1,668,661 at December 31, 2024)		1,648,433			1,547,128
Securities available-for-sale (amortized cost of $1,728,199 at September 30, 2025, and $1,668,661 at December 31, 2024)		1,643,450			1,547,128
Loans held for sale		13,338			—
Loans held for investment		20,104,716			19,375,955
Loans held for investment		19,784,702			19,375,955
Less: Allowance for loan losses		(186,647	)		(161,765	)
Less: Allowance for loan losses		(173,531	)		(161,765	)
Unamortized deferred loan fees, net		(14,987	)		(10,541	)
Unamortized deferred loan fees, net		(13,834	)		(10,541	)
Loans held for investment, net		19,903,082			19,203,649
Loans held for investment, net		19,597,337			19,203,649
Equity securities		32,111			34,429
Equity securities		28,849			34,429
Federal Home Loan Bank stock		17,250			17,250
Other real estate owned, net		1832,~~990~~983			23,071
Affordable housing investments and alternative energy partnerships, net		~~289~~292,~~550~~672			289,611
Premises and equipment, net		8988,~~556~~552			88,676
Customers’ liability on acceptances		97,~~622~~730			14,061
Accrued interest receivable		96,~~646~~055			97,779
Goodwill		375,696			375,696
Other intangible assets, net		2,~~888~~667			3,335
Right-of-use assets - operating leases		3231,~~291~~086			28,645
Other assets		~~256~~244,~~426~~257			291,831
Total assets	$	2324,~~723~~075,~~847~~644		$	23,054,681
Liabilities and Stockholders’ Equity
Deposits:
Non-interest-bearing	$	3,~~381~~574,~~407~~567		$	3,284,342
Interest-bearing:
NOW deposits		2,~~174~~226,~~108~~182			2,205,695
Money market deposits		3,~~431~~586,~~060~~301			3,372,773
Savings deposits		1,~~317~~424,~~104~~243			1,252,788
Time deposits		9,~~702~~709,~~651~~856			9,570,601
Total deposits		20,~~006~~521,~~330~~149			19,686,199
Advances from the Federal Home Loan Bank		~~412~~190,000			60,000
Other borrowings of affordable housing investments		17,~~652~~628			17,740
Long-term debt		119,136			119,136
Acceptances outstanding		97,~~622~~730			14,061
Lease liabilities - operating leases		3433,~~304~~079			30,851
Other liabilities		~~238~~284,~~508~~646			280,990
Total liabilities		2021,~~837~~173,~~552~~368			20,208,977
Commitments and contingencies		—			—
Stockholders’ Equity
Common stock, $0.01 par value, 100,000,000 shares authorized; 91,776,614 issued and 69,343,395 outstanding at June 30, 2025, and 91,615,458 issued and 70,863,324 outstanding at December 31, 2024		918			916
Common stock, $0.01 par value, 100,000,000 shares authorized; 91,789,810 issued and 68,286,591 outstanding at September 30, 2025, and 91,615,458 issued and 70,863,324 outstanding at December 31, 2024		918			916
Additional paid-in-capital		~~996~~998,~~249~~883			993,962
Accumulated other comprehensive loss, net		(6959,~~222~~698	)		(85,607	)
Retained earnings		2,~~787~~842,~~608~~016			2,688,353
Treasury stock, at cost (22,433,219 shares at June 30, 2025, and 20,752,134 shares at December 31, 2024)		(829,258	)		(751,920	)
Treasury stock, at cost (23,503,219 shares at September 30, 2025, and 20,752,134 shares at December 31, 2024)		(879,843	)		(751,920	)
Total stockholders' equity		2,~~886~~902,~~295~~276			2,845,704
Total liabilities and stockholders' equity	$	2324,~~723~~075,~~847~~644		$	23,054,681

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(In thousands, except share and per share data)

($ In thousands, except share and per share data)

Interest and Dividend Income

Loans receivable

~~296~~308,~~857~~945

~~303~~310,~~336~~311

~~590~~899,~~841~~786

~~605~~916,~~864~~175

Investment securities

1312,~~666~~690

15,~~644~~125

2538,~~769~~459

3045,~~595~~720

Federal Home Loan Bank stock

~~373~~376

~~499~~375

~~752~~1,128

~~930~~1,305

Deposits with banks

12,~~022~~184

13,~~381~~680

2437,~~951~~135

2841,~~113~~793

Total interest and dividend income

~~322~~334,~~918~~195

~~332~~339,~~860~~491

~~642~~976,~~313~~508

~~665~~1,~~502~~004,993

Interest Expense

Time deposits

9493,~~364~~087

~~118~~119,~~076~~786

~~190~~283,~~430~~517

~~227~~347,~~622~~408

Other deposits

4446,~~370~~300

4445,~~512~~918

86133,~~804~~104

87133,~~300~~218

Advances from Federal Home Loan Bank

~~742~~3,075

21,~~316~~885

25,~~646~~721

1113,~~632~~517

Long-term debt

2,~~029~~043

12,~~863~~351

46,~~049~~092

35,~~584~~935

Short-term debt

~~192~~103

~~777~~396

~~524~~627

1,~~476~~872

Total interest expense

~~141~~144,~~697~~608

~~167~~170,~~544~~336

~~284~~429,~~453~~061

~~331~~501,~~614~~950

Net interest income before provision for credit losses

~~181~~189,~~221~~587

~~165~~169,~~316~~155

~~357~~547,~~860~~447

~~333~~503,~~888~~043

Provision for credit losses

1128,~~200~~731

614,~~600~~500

2655,~~700~~431

823,~~500~~000

Net interest income after provision for credit losses

~~170~~160,~~021~~856

~~158~~154,~~716~~655

~~331~~492,~~160~~016

~~325~~480,~~388~~043

Non-Interest Income

Net losses from equity securities

(1,390

)

(1,430

)

(5,581

)

(10,457

)

Net gains/(losses) from equity securities

3,263

4,253

(2,318

)

(6,204

)

Net gains from securities available for sale

—

1,107

Letters of credit commissions

2,~~120~~256

12,~~888~~081

46,~~211~~467

35,~~605~~686

Depository service fees

12,~~925~~011

1,~~778~~572

35,~~677~~688

34,~~328~~900

Wealth management fees

46,~~936~~219

56,~~678~~545

1117,~~105~~324

1117,~~316~~861

Other operating income

7,~~800~~272

5,~~301~~914

1320,~~183~~455

1016,~~927~~841

Total non-interest income

1521,~~391~~021

1320,~~215~~365

2647,~~595~~616

1940,~~826~~191

Non-Interest Expense

Salaries and employee benefits

43,~~123~~462

40,~~439~~859

85129,~~550~~012

83124,~~991~~850

Occupancy expense

56,~~950~~104

5,~~652~~938

1117,~~687~~791

1117,~~619~~557

Computer and equipment expense

5,~~160~~760

54,~~391~~753

1116,~~214~~974

1015,~~459~~212

Professional services expense

87,~~888~~360

87,~~212~~021

1623,~~336~~696

1522,~~204~~225

Data processing service expense

43,~~631~~991

34,~~877~~330

913,~~037~~028

712,~~806~~136

FDIC and regulatory assessments

32,~~177~~783

3,~~742~~250

69,~~576~~359

913,~~831~~081

Marketing expense

1,~~113~~494

1,~~474~~614

24,~~991~~485

35,~~388~~002

Other real estate owned (income)/expense

(~~377~~1,078

)

~~1,482~~596

(~~133~~1,211

)

12,~~735~~331

Amortization of investments in low-income housing and alternative energy partnerships

1112,~~179~~149

2324,~~396~~077

2032,~~233~~382

3761,~~828~~905

Amortization of core deposit intangibles

~~250~~229

~~259~~250

~~500~~729

~~598~~848

Other operating expense

65,~~040~~863

54,~~428~~179

1016,~~799~~662

1014,~~132~~311

Total non-interest expense

8988,~~134~~117

9996,~~352~~867

~~174~~262,~~790~~907

~~192~~289,~~591~~458

Income before income tax expense

9693,~~278~~760

7278,~~579~~153

~~182~~276,~~965~~725

~~152~~230,~~623~~776

Income tax expense

1816,~~828~~109

510,~~750~~639

3652,~~009~~118

1424,~~359~~998

Net income

77,~~450~~651

6667,~~829~~514

~~146~~224,~~956~~607

~~138~~205,~~264~~778

Other Comprehensive Income/(Loss), net of tax

Net holding gains/(losses) on securities available-for-sale

2,525

(448

)

16,385

(6,870

)

Net holding gains on securities available-for-sale

9,524

26,607

25,909

19,737

Net holding losses on cash flow hedge derivatives

—

~~(333~~—

)

—

(774

)

Total other comprehensive income/(loss), net of tax

2,525

(781

)

16,385

(7,644

)

Total other comprehensive income, net of tax

9,524

26,607

25,909

18,963

Total comprehensive income

7987,~~975~~175

6694,~~048~~121

~~163~~250,~~341~~516

~~130~~224,~~620~~741

Net Income Per Common Share:

Basic

1.1113

0.9294

23.0922

12.9084

Diluted

1.1013

0.9294

23.0921

12.9083

Cash dividends paid per common share

0.34

01.6802

Average Common Shares Outstanding:

Basic

6968,~~989~~727,~~825~~390

7271,~~658~~786,~~810~~624

7069,~~183~~692,~~752~~964

72,~~666~~370,~~392~~995

Diluted

7068,~~188~~990,~~902~~648

72,~~825~~032,~~356~~456

7069,~~432~~946,~~916~~877

72,~~898~~607,~~256~~550

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

									Accumulated
	Common Stock					Additional			Other									Total
	Number of					Paid-in			Comprehensive			Retained			Treasury			Stockholders'
Three Months Ended	Shares			Amount		Capital			(Loss)/Income			Earnings			Stock			Equity
	(In thousands, except share and per share data)
	($ In thousands, except share and per share data)
Balance at March 31, 2025		70,034,708		$	916	$	995,371		$	(71,747	)	$	2,734,004		$	(793,385	)	$	2,865,159
Dividend Reinvestment Plan		14,302			1		640			—			—			—			641
Restricted stock units vested		75,608			1		—			—			—			—			1
Stock issued to directors		22,956			—		1,020			—			—			—			1,020
Shares withheld related to net share settlement of RSUs		—			—		(1,964	)		—			—			—			(1,964	)
Purchases of treasury stock		(804,179	)		—		—			—			—			(35,873	)		(35,873	)
Stock-based compensation		—			—		1,182			—			—			—			1,182
Cash dividends of $0.34 per share		—			—		—			—			(23,846	)		—			(23,846	)
Other comprehensive income		—			—		—			2,525			—			—			2,525
Net income		—			—		—			—			77,450			—			77,450
Balance at June 30, 2025		69,343,395		$	918	$	996,249		$	(69,222	)	$	2,787,608		$	(829,258	)	$	2,886,295
Dividend Reinvestment Plan		12,855			—		634			—			—			—			634
Restricted stock units vested		341			—		—			—			—			—			—
Shares withheld related to net share settlement of RSUs		—			—		(3	)		—			—			—			(3	)
Purchases of treasury stock		(1,070,000	)		—		—			—			—			(50,585	)		(50,585	)
Stock-based compensation		—			—		2,003			—			—			—			2,003
Cash dividends of $0.34 per share		—			—		—			—			(23,243	)		—			(23,243	)
Other comprehensive income		—			—		—			9,524			—			—			9,524
Net income		—			—		—			—			77,651			—			77,651
Balance at September 30, 2025		68,286,591		$	918	$	998,883		$	(59,698	)	$	2,842,016		$	(879,843	)	$	2,902,276

										Accumulated
	Common Stock						Additional			Other									Total
	Number of						Paid-in			Comprehensive			Retained			Treasury			Stockholders'
Three Months Ended	Shares			Amount			Capital			(Loss)/Income			Earnings			Stock			Equity
	(In thousands, except share and per share data)
	($ In thousands, except share and per share data)
Balance at March 31, 2024		72,688,191		$	914		$	989,578		$	(92,279	)	$	2,547,068		$	(667,209	)	$	2,778,072
Dividend Reinvestment Plan		20,774			—			744			—			—			—			744
Restricted stock units vested		126,818			2			—			—			—			—			2
Stock issued to directors		24,120			—			850			—			—			—			850
Shares withheld related to net share settlement of RSUs		—			—			(3,684	)		—			—			—			(3,684	)
Purchases of treasury stock		(689,470	)		—			—			—			—			(25,309	)		(25,309	)
Stock-based compensation		—			—			1,284			—			—			—			1,284
Cash dividends of $0.34 per share		—			—			—			—			(24,765	)		—			(24,765	)
Other comprehensive loss		—			—			—			(781	)		—			—			(781	)
Net income		—			—			—			—			66,829			—			66,829
Balance at June 30, 2024		72,170,433		$	916		$	988,772		$	(93,060	)	$	2,589,132		$	(692,518	)	$	2,793,242
Dividend Reinvestment Plan		17,332			1			728			—			—			—			729
Restricted stock units vested		564			(1	)		—			—			—			—			(1	)
Stock issued to directors		—			—			(1	)		—			—			—			(1	)
Shares withheld related to net share settlement of RSUs		—			—			(13	)		—			—			—			(13	)
Purchases of treasury stock		(832,460	)		—			—			—			—			(35,309	)		(35,309	)
Stock-based compensation		—			—			1,876			—			—			—			1,876
Cash dividends of $0.34 per share		—			—			—			—			(24,331	)		—			(24,331	)
Other comprehensive income		—			—			—			26,607			—			—			26,607
Net income		—			—			—			—			67,514			—			67,514
Balance at September 30, 2024		71,355,869		$	916		$	991,362		$	(66,453	)	$	2,632,315		$	(727,827	)	$	2,830,313

Table of Contents

									Accumulated
	Common Stock					Additional			Other									Total
	Number of					Paid-in			Comprehensive			Retained			Treasury			Stockholders'
Six Months Ended	Shares			Amount		Capital			(Loss)/Income			Earnings			Stock			Equity
Nine Months Ended	Shares			Amount		Capital			(Loss)/Income			Earnings			Stock			Equity
	(In thousands, except share and per share data)
	($ In thousands, except share and per share data)
Balance at December 31, 2024		70,863,324		$	916	$	993,962		$	(85,607	)	$	2,688,353		$	(751,920	)	$	2,845,704
Dividend Reinvestment Plan		3043,~~154~~009			1		1,~~335~~969			—			—			—			1,~~336~~970
Restricted stock units vested		108,~~046~~387			1		—			—			—			—			1
Stock issued to directors		22,956			—		1,020			—			—			—			1,020
Shares withheld related to net share settlement of RSUs		—			—		(2,~~755~~758	)		—			—			—			(2,~~755~~758	)
Purchases of treasury stock		(12,~~681~~751,085	)		—		—			—			—			(77127,~~338~~923	)		(77127,~~338~~923	)
Stock-based compensation		—			—		24,~~687~~690			—			—			—			24,~~687~~690
Cash dividends of $0.68 per share		—			—		—			—			(47,701	)		—			(47,701	)
Cash dividends of $1.02 per share		—			—		—			—			(70,944	)		—			(70,944	)
Other comprehensive income		—			—		—			1625,~~385~~909			—			—			1625,~~385~~909
Net income		—			—		—			—			~~146~~224,~~956~~607			—			~~146~~224,~~956~~607
Balance at June 30, 2025		69,343,395		$	918	$	996,249		$	(69,222	)	$	2,787,608		$	(829,258	)	$	2,886,295
Balance at September 30, 2025		68,286,591		$	918	$	998,883		$	(59,698	)	$	2,842,016		$	(879,843	)	$	2,902,276

									Accumulated
	Common Stock					Additional			Other									Total
	Number of					Paid-in			Comprehensive			Retained			Treasury			Stockholders'
Six Months Ended	Shares			Amount		Capital			Loss			Earnings			Stock			Equity
Nine Months Ended	Shares			Amount		Capital			(Loss)/Income			Earnings			Stock			Equity
	(In thousands, except share and per share data)
	($ In thousands, except share and per share data)
Balance at December 31, 2023		72,668,927		$	914	$	987,953		$	(85,416	)	$	2,500,341		$	(667,217	)	$	2,736,575
Dividend Reinvestment Plan		3956,~~242~~574			—1		12,~~488~~216			—			—			—			12,~~488~~217
Restricted stock units vested		~~127~~128,~~614~~178			21		—			—			—			—			21
Stock issued to directors		24,120			—		850			—			—			—			850
Shares withheld related to net share settlement of RSUs		—			—		(3,~~708~~722	)		—			—			—			(3,~~708~~722	)
Purchases of treasury stock		(~~689~~1,~~470~~521,930	)		—		—			—			—			(2560,~~301~~610	)		(2560,~~301~~610	)
Stock-based compensation		—			—		24,~~189~~065			—			—			—			24,~~189~~065
Cash dividends of $0.68 per share		—			—		—			—			(49,473	)		—			(49,473	)
Cash dividends of $1.02 per share		—			—		—			—			(73,804	)		—			(73,804	)
Other comprehensive loss		—			—		—			(7,644	)		—			—			(7,644	)
Other comprehensive income		—			—		—			18,963			—			—			18,963
Net income		—			—		—			—			~~138~~205,~~264~~778			—			~~138~~205,~~264~~778
Balance at June 30, 2024		72,170,433		$	916	$	988,772		$	(93,060	)	$	2,589,132		$	(692,518	)	$	2,793,242
Balance at September 30, 2024		71,355,869		$	916	$	991,362		$	(66,453	)	$	2,632,315		$	(727,827	)	$	2,830,313

See accompanying Notes to Consolidated Financial Statements.

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CATHAY GENERAL BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	Nine Months Ended September 30,
	2025			2024
	(In thousands)
	($ In thousands)
Cash Flows from Operating Activities
Net income	$	~~146~~224,~~956~~607		$	~~138~~205,~~264~~778
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		2655,~~700~~431			823,~~500~~000
Provision for losses on other real estate owned		890			1,164
Deferred tax provision/(benefit)		510,007			(1120,~~971~~452	)
Depreciation and amortization		35,~~514~~184			35,~~696~~465
Amortization of right-of-use asset		47,~~686~~045			47,~~912~~309
Change in operating lease liabilities		32,~~453~~228			~~558~~(1,891	)
Net gains on sale and transfers of other real estate owned		(12,~~455~~968	)		—
Net gains on sale of loans		(142	)		(58	)
Net losses/(gains) on sale of loans		57			(58	)
Loss on sales or disposal of premises and equipment		1463			—
Amortization on alternative energy partnerships, venture capital and other investments		2032,~~233~~382			3761,~~828~~905
Net gains on sales of securities available-for-sale		—			(1,107	)
Amortization/accretion of securities available-for-sale premiums/discounts, net		(1219,~~376~~721	)		(1219,~~912~~182	)
Unrealized loss on equity securities		52,~~581~~318			106,~~457~~204
Stock-based compensation and stock issued to officers as compensation		35,~~708~~711			34,~~039~~916
Net change in accrued interest receivable and other assets		2022,~~418~~830			~~(21~~9,~~638~~666	)
Net change in other liabilities		(6432,~~276~~557	)		~~355~~(40,382	)
Net cash provided by operating activities		~~162~~313,~~911~~507			~~161~~242,~~087~~335
Cash Flows from Investing Activities
Purchase of securities available-for-sale		(~~779~~1,~~062~~289,400	)		(~~645~~988,~~827~~498	)
Proceeds from repayments, maturities and calls of securities available-for-sale		~~713~~1,~~395~~249,581			~~571~~1,097,594
Proceeds from sale of securities available-for-sale		—			33,690
Proceeds from sale of other real estate owned		10,316			—
Purchase of Federal Home Loan Bank stock		—			(12,535	)
Redemption of Federal Home Loan Bank stock		—			13,031
Proceeds from sale of loans originally classified as held-for-investment		1542,~~263~~134			~~107~~130,~~012~~010
Net (increase)/decrease in loans		(~~458~~820,~~424~~318	)		7426,~~489~~036
Purchase of premises and equipment		(34,~~960~~455	)		(12,~~449~~654	)
Net increase/(decrease) in affordable housing investments and alternative energy partnerships		1,384			(20,036	)
Net decrease/(increase) in affordable housing investments and alternative energy partnerships		2,004			(31,737	)
Net cash (used for)/provided by investing activities		(~~501~~810,~~088~~138	)		~~119~~264,~~472~~937
Cash Flows from Financing Activities
Increase in deposits		~~320~~834,~~090~~819			~~447~~618,~~635~~611
Advances from Federal Home Loan Bank		410,~~897~~145,000			56,968,000
Repayment of Federal Home Loan Bank borrowings		(410,~~545~~015,000	)		(67,~~343~~448,000	)
Cash dividends paid		(4770,~~701~~944	)		(4973,~~473~~804	)
Purchases of treasury stock		(77127,~~338~~923	)		(2560,~~301~~610	)
Proceeds from shares issued under Dividend Reinvestment Plan		1,~~336~~970			12,~~488~~217
Taxes paid related to net share settlement of RSUs		(2,~~755~~758	)		(3,~~708~~722	)
Net cash provided by/(used for) financing activities		545,632			(4,359	)
Net cash provided by financing activities		765,164			2,692
Increase in cash, cash equivalents, and restricted cash		~~207~~268,~~455~~533			~~276~~509,~~200~~964
Cash, cash equivalents, and restricted cash, beginning of the period		1,039,520			828,801
Cash, cash equivalents, and restricted cash, end of the period	$	1,~~246~~308,~~975~~053		$	1,~~105~~338,~~001~~765
Supplemental disclosure of cash flow information
Cash paid during the period:
Interest	$	~~287~~433,~~163~~983		$	~~322~~494,~~960~~181
Income taxes paid	$	3543,~~025~~410		$	3241,~~867~~027
Non-cash investing and financing activities:
Net change in unrealized holding gain/(loss) on securities available-for-sale, net of tax	$	16,385		$	(6,870	)
Net change in unrealized holding gain on securities available-for-sale, net of tax	$	25,909		$	19,737
Net change in unrealized holding loss on cash flow hedge derivatives	$	—		$	(774	)
Loans transferred from held-for-investment to held-for-sale	$	2851,~~458~~128		$	~~106~~135,~~953~~141
Transfers to other real estate owned from loans held-for-investment	$	610,~~808~~351		$	—
Transfers to other real estate owned from loans held-for-sale	$	8,938		$	—

See accompanying Notes to Consolidated Financial Statements.

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CATHAY GENERAL BANCORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. Business

Cathay General Bancorp (“Bancorp”) is the holding company for Cathay Bank (the “Bank” and, together, with Bancorp, the “Company”), and eleven limited partnerships investing in affordable housing investments in which the Bank is the sole limited partner. Bancorp also owns 100% of the common stock of five statutory business trusts created for the purpose of issuing capital securities. The Bank was founded in 1962 and offers a wide range of financial services. As of ~~June~~September 30, 2025, the Bank operates 24 branches in Southern California, 17 branches in Northern California, 9 branches in New York State, four in Washington State, two in Illinois, two in Texas, one in Maryland, Massachusetts, Nevada, and New Jersey, one in Hong Kong, and a representative office in Taipei, Beijing, and Shanghai. Deposit accounts at the Hong Kong branch are not insured by the Federal Deposit Insurance Corporation (the “FDIC”). Current activities of Beijing, Shanghai, and Taipei representative offices are limited to coordinating the transportation of documents to Bank's head office and performing liaison services.

2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the audited Consolidated Financial Statements and Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025 (the “2024 Form 10-K”).

The preparation of the Consolidated Financial Statements in accordance with GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements. Actual results could differ from those estimates. The Company expects that the most significant estimate subject to change is the allowance for loan losses.

3. Other Accounting Standards Pending Adoption

In September 2025, ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 simplifies and modernizes the accounting for internal-use software by removing prescriptive project stage guidance and introducing a new capitalization threshold. Under the revised standard, software development costs are capitalized when management authorizes and commits funding for the project and it is probable the software will be completed and used as intended. ASU 2025-06 will be effective in 2028. The Company is currently evaluating the impact of this guidance on it's Consolidated Financial Statements.

In November 2024, ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, was issued. This ASU requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for us, on a prospective basis, for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, though early adoption and retrospective application is permitted. ASU 2024-03 is not expected to have a significant impact on our financial statements.

In December 2023, ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” was issued. This ASU amends the disclosure requirements for income taxes, including the requirement for further disaggregation of the income tax rate reconciliation and income taxes paid disclosures. The amendments in this guidance are effective for annual periods beginning after December 15, 2024. These amendments should be applied prospectively, with the option to apply retrospectively. ASU 2023-09 is effective for us beginning after December 15, 2025, and is not expected to have a significant impact on our financial statements.

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4. Cash, Cash Equivalents and Restricted Cash

The Company manages its cash and cash equivalents based upon the Company’s operating, investment, and financing activities. Cash and cash equivalents, for the purposes of reporting cash flows, consist of cash and due from banks, short-term investments, and interest-bearing deposits. Cash and due from banks include cash on hand, cash items in transit, cash due from the Federal Reserve Bank of San Francisco (“FRBSF”) and other financial institutions. Short-term investments and interest-bearing deposits include cash placed with other banks with original maturity of three months or less.

The Company had average excess balance with FRBSF of $1.0310 billion as of ~~June~~September 30, 2025, and $1.05 billion as of December 31, 2024. As of ~~June~~September 30, 2025, and December 31, 2024, the Company had $2116.45 million and $43.4 million, respectively, as cash margin that serves as collateral on deposits in a cash margin account for interest rate swaps. Of the balances held in the cash margin account $65.65 million and $8.6 million are restricted as of ~~June~~September 30, 2025, and December 31, 2024, respectively. As of December 31, 2024, the Company held $0.3 million in a restricted escrow account with a major bank for its alternative energy investments.

5. Earnings per Share

Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that then shared in earnings. Restricted stock units (“RSUs”) with anti-dilutive effect were not included in the computation of diluted earnings per share. The following table sets forth earnings per common share calculations:

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands, except share and per share data)
	($In thousands, except share and per share data)
Net income	$	77,~~450~~651	$	6667,~~829~~514	$	~~146~~224,~~956~~607	$	~~138~~205,~~264~~778
Weighted-average shares:
Basic weighted-average number of common shares outstanding		6968,~~989~~727,~~825~~390		7271,~~658~~786,~~810~~624		7069,~~183~~692,~~752~~964		72,~~666~~370,~~392~~995
Dilutive effect of weighted-average outstanding common share equivalents:
RSUs		~~199~~263,~~077~~258		~~166~~245,~~546~~832		~~249~~253,~~164~~913		~~231~~236,~~864~~555
Diluted weighted-average number of common shares outstanding		7068,~~188~~990,~~902~~648		72,~~825~~032,~~356~~456		7069,~~432~~946,~~916~~877		72,~~898~~607,~~256~~550
Average restricted stock units with anti-dilutive effect		~~6,454~~546		~~34,205~~309		2416,~~438~~387		1711,~~103~~464
Earnings per common share:
Basic	$	1.1113	$	0.9294	$	23.0922	$	12.9084
Diluted	$	1.1013	$	0.9294	$	23.0921	$	12.9083

6. Stock-Based Compensation

Pursuant to the Company’s 2005 Incentive Plan, as amended and restated, the Company may grant incentive stock options (employees only), non-statutory stock options, common stock awards, restricted stock, RSUs, stock appreciation rights and cash awards to non-employee directors and eligible employees.

RSUs are generally granted at no cost to the recipient. RSUs generally vest ratably over three years or cliff vest after one or three years of continued employment from the date of the grant. While a portion of RSUs may be time-vesting awards, others may vest subject to the attainment of specified performance goals and are referred to as “performance-based RSUs.” All RSUs are subject to forfeiture until vested.

Performance-based RSUs are granted at the target amount of awards. Based on the Company’s attainment of specified performance goals and consideration of market conditions, the number of shares that vest can be adjusted to a minimum of zero and to a maximum of 150% of the target. The amount of performance-based RSUs that are eligible to vest is determined at the end of each performance period and is then added together to determine the total number of performance shares that are eligible to vest. Performance-based RSUs generally cliff vest three years from the date of grant.

Compensation costs for the time-based awards are based on the quoted market price of the Company’s stock at the grant date. Compensation costs associated with performance-based RSUs are based on grant date fair value, which considers both market and performance conditions. Compensation costs of both time-based and performance-based awards are recognized on a straight-line basis from the grant date until the vesting date of each grant.

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The following table presents RSU activity during the ~~six~~nine months ended ~~June~~September 30, 2025:

	Time-Based RSUs					Performance-Based RSUs
				Weighted-Average					Weighted-Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Balance at December 31, 2024		202,466		$	34.70		339,914		$	33.02
Granted		65,667			45.65		89,777			46.00
Vested		(50,~~540~~939	)		4344.9701		(104,318	)		42.82
Forfeited		(35,~~261~~382	)		3839.8945		(12,342	)		37.91
Balance at June 30, 2025		214,332		$	35.81		313,031		$	33.28
Balance at September 30, 2025		211,812		$	35.74		313,031		$	33.28

The compensation expense recorded for RSUs was $1.2.0 million and $1.39 million for the three months ended ~~June~~September 30, 2025, and 2024, respectively. For the ~~six~~ nine months ended ~~June~~September 30, 2025, and 2024, the compensation expense recorded for RSUs was $24.7 million and $24.21 million, respectively. Unrecognized stock-based compensation expense related to RSUs was $1311.4 million and $11.5 million as of ~~both~~ ~~June~~September 30, 2025, and 2024, respectively. As of ~~June~~September 30, 2025, these costs are expected to be recognized over the next 2.1.9 years for time-based and performance-based RSUs.

As of ~~June~~September 30, 2025, 2,~~668~~777,~~139~~066 shares were available for future grants under the Company’s 2005 Incentive Plan, as amended and restated.

7. Investment Securities

The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of securities available-for-sale ("AFS") as of ~~June~~September 30, 2025, and December 31, 2024

	June 30, 2025
	September 30, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
	($ In thousands)
Securities AFS
U.S. treasury securities	$	~~768~~776,~~375~~501	$	14342	$	~~140~~10	$	~~768~~776,~~249~~833
U.S. government agency entities		76,~~991~~928		5451		~~111~~119		76,~~934~~860
Mortgage-backed securities		751,160		102		92,831		658,431
U.S. government sponsored entities		25,000		5		—		25,005
Collateralized mortgage obligations		26,023		—		2,096		23,927
Mortgage-backed securities		726,456		511		81,392		645,575
Corporate debt securities		193,154		79		3,341		189,892
Collateralized mortgage obligations		25,171		—		1,869		23,302
Total	$	1,746,703	$	249	$	98,519	$	1,648,433
Corporate debt securities		168,143		56		2,324		165,875
Total	$	1,728,199	$	965	$	85,714	$	1,643,450

	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
	($ In thousands)
Securities AFS
U.S. treasury securities	$	621,212	$	250	$	—	$	621,462
U.S. government agency entities		9,226		50		127		9,149
Mortgage-backed securities		797,145		67		113,196		684,016
Collateralized mortgage obligations		27,747		—		3,191		24,556
Corporate debt securities		213,331		145		5,531		207,945
Total	$	1,668,661	$	512	$	122,045	$	1,547,128

As of ~~June~~September 30, 2025, and December 31, 2024, the amortized cost of AFS securities excluded accrued interest receivables of $42.38 million and $4.6 million, respectively, which are included in accrued interest receivable on the Consolidated Balance Sheets. For the Company’s accounting policy related to AFS securities accrued interest receivable, see Note 1 - Summary of Significant Accounting Policies – Securities Available for Sale – Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

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The amortized cost and fair value of AFS securities as of ~~June~~September 30, 2025, by contractual maturities, are set forth in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

	June 30, 2025
	September 30, 2025
	Securities AFS
	Amortized Cost		Fair Value
	(In thousands)
	($ In thousands)
Due in one year or less	$	~~838~~906,~~473~~650	$	~~837~~905,~~566~~081
Due after one year through five years		~~153~~92,~~104~~523		~~149~~91,~~740~~193
Due after five years through ten years		7273,~~971~~209		69,~~984~~702
Due after ten years		~~682~~655,~~155~~817		~~591~~577,~~143~~474
Total	$	1,~~746~~728,~~703~~199	$	1,~~648~~643,~~433~~450

Equity Securities - The Company recognized an unrealized net ~~loss~~gain of $13.43 million for the three months ended ~~June~~September 30, 2025, compared to an unrealized net ~~loss~~gain of $1.4.3 million for the three months ended ~~June~~September 30, 2024. The Company recognized an unrealized net loss of $52.63 million for the ~~six~~nine months ended ~~June~~September 30, 2025, compared to an unrealized net loss of $106.52 million for the ~~six~~nine months ended ~~June~~September 30, 2024. The $43.9 million decrease in unrealized loss was due to ~~a smaller~~an ~~decrease~~ increase in fair value of equity investments with readily determinable fair values for the ~~six~~ nine months ended ~~June~~September 30, 2025, as compared to the ~~six~~ nine months ended ~~June~~September 30, 2024. Equity securities were $2832.81 million and $34.4 million as of ~~June~~September 30, 2025, and December 31, 2024, respectively.

The following tables set forth the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of ~~June~~September 30, 2025, and December 31, 2024:

June 30, 2025

September 30, 2025

Less than 12 Months

12 Months or Longer

Total

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(In thousands)

($ In thousands)

Securities AFS

U.S. treasury securities

~~570~~108,~~370~~009

~~140~~10

—

~~570~~108,~~370~~009

~~140~~10

U.S. government agency entities

24,~~332~~295

2,~~845~~495

~~109~~110

56,~~177~~790

~~111~~119

Mortgage-backed securities

~~28,273~~240

~~424~~—

~~628~~629,~~662~~714

9281,~~407~~392

~~656~~629,~~935~~954

9281,~~831~~392

Collateralized mortgage obligations

—

23,~~927~~302

21,~~096~~869

23,~~927~~302

21,~~096~~869

Corporate debt securities

9,~~980~~930

2069

~~119~~105,~~833~~889

32,~~321~~255

~~129~~115,~~813~~819

32,~~341~~324

Total

~~610~~122,~~955~~474

~~586~~88

~~775~~761,~~267~~400

9785,~~933~~626

1883,~~386,222~~874

9885,~~519~~714

	December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
	($ In thousands)
Securities AFS
U.S. government agency entities	$	4,199	$	8	$	2,108	$	119	$	6,307	$	127
Mortgage-backed securities		29,955		959		653,236		112,237		683,191		113,196
Collateralized mortgage obligations		—		—		24,556		3,191		24,556		3,191
Corporate debt securities		24,900		100		127,744		5,431		152,644		5,531
Total	$	59,054	$	1,067	$	807,644	$	120,978	$	866,698	$	122,045

As of ~~June~~September 30, 2025, the Company had a total of ~~183~~169 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of ~~147~~141 mortgage-backed securities, 1412 Corporate debt securities, 11 U.S. ~~treasury~~ ~~securities, eight U.S.~~ government agency securities, ~~and~~ three collateralized mortgage obligations, and two U.S. treasury securities. In comparison, as of December 31, 2024, the Company has a total of 182 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of 154 mortgage-backed securities, 16 Corporate debt securities, nine U.S. government agency securities, and three collateralized mortgage obligations.

Table of Contents

Allowance for Credit Losses

The AFS securities that were in an unrealized loss position at ~~June~~September 30, 2025, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 - Summary of Significant Accounting Policies - Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company concluded the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell securities AFS that have declined below their cost before their anticipated recovery. Accordingly, no allowance for credit losses was recorded as of ~~June~~September 30, 2025, against these securities, and there was no provision for credit losses recognized for the three and ~~six~~nine months ended ~~June~~September 30, 2025.

AFS securities having a carrying value of $1719.75 million and $17.8 million as of ~~June~~September 30, 2025, and December 31, 2024, respectively, were pledged to secure public deposits and other borrowings.

8. Loans

Most of the Company’s business activities are with clients located in the high-density Asian-populated areas of Southern and Northern California; New York City, New York; Dallas and Houston, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Rockville, Maryland; and Las Vegas, Nevada. The Company also has loan clients in Hong Kong. The Company has no specific industry concentration, and generally its loans, when secured, are secured by real property or other collateral of the borrowers. The Company generally expects loans to be paid off from the operating profits of the borrowers, from refinancing by other lenders, or through sale by the borrowers of the secured collateral.

The types of loans in the Company’s Consolidated Balance Sheets as of ~~June~~September 30, 2025, and December 31, 2024, were as follows:

	June 30, 2025			December 31, 2024
	September 30, 2025			December 31, 2024
	(In thousands)
	($ In thousands)
Commercial loans	$	3,~~194~~212,~~724~~907		$	3,098,004
Construction loans		~~301~~356,~~125~~215			319,649
Commercial real estate loans		10,~~363~~484,~~109~~939			10,033,830
Residential mortgage loans		5,~~692~~815,~~142~~140			5,689,097
Equity lines		~~230~~232,~~001~~254			229,995
Installment and other loans		3,~~601~~261			5,380
Gross loans	$	1920,~~784~~104,~~702~~716		$	19,375,955
Allowance for loan losses		(~~173~~186,~~531~~647	)		(161,765	)
Unamortized deferred loan fees, net		(1314,~~834~~987	)		(10,541	)
Total loans held for investment, net	$	19,~~597~~903,~~337~~082		$	19,203,649
Loans held for sale	$	13,338		$	—

As of ~~June~~September 30, 2025, and December 31, 2024, recorded investment in non-accrual loans was $~~174~~165.26 million and $169.2 million, respectively. For non-accrual loans, the amounts previously charged-off represent 1513.80% and 11.87% of the contractual balances for non-accrual loans as of ~~June~~September 30, 2025, and December 31, 2024, respectively.

The following table presents non-accrual loans and the related allowance as of ~~June~~September 30, 2025, and December 31, 2024.

	June 30, 2025
	September 30, 2025
	Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
	($ In thousands)
With no allocated allowance:
Commercial loans	$	5537,~~765~~723	$	4424,~~006~~689	$	—
Construction loans		4,230		4,230		—
Commercial real estate loans		102,912		84,419		—
Commercial real estate loans		112,794		93,557		—
Residential mortgage loans and equity lines		19,856		19,278		—
Residential mortgage loans and equity lines		15,512		14,903		—
Subtotal	$	160,491	$	128,386	$	—
Subtotal	$	188,301	$	156,696	$	—
With allocated allowance:
Commercial loans	$	2312,~~271~~900	$	109,~~530~~001	$	43,~~282~~604
Commercial real estate loans		~~201~~23,064		~~197~~18,739		29,131
Residential mortgage loans and equity lines		710,~~297~~129		69,~~730~~506		2832
Subtotal	$	3046,~~769~~093	$	1737,~~457~~246	$	412,~~312~~767
Total non-accrual loans	$	~~219~~206,~~070~~584	$	~~174~~165,~~153~~632	$	412,~~312~~767

Table of Contents

	December 31, 2024
	Unpaid Principal Balance		Recorded Investment		Allowance
	(In thousands)
	($ In thousands)
With no allocated allowance:
Commercial loans	$	56,022	$	53,499	$	—
Commercial real estate loans		100,316		82,936		—
Residential mortgage loans and equity lines		19,340		18,831		—
Subtotal	$	175,678	$	155,266	$	—
With allocated allowance:
Commercial loans	$	18,769	$	6,267	$	1,208
Commercial mortgage loans		194		193		1
Commercial real estate loans		194		193		1
Residential mortgage loans and equity lines		7,786		7,435		29
Subtotal	$	26,749	$	13,895	$	1,238
Total non-accrual loans	$	202,427	$	169,161	$	1,238

The following tables present the average recorded investment and interest income recognized on non-accrual loans for the period indicated:

	Three Months Ended				~~Six~~Nine Months Ended
	June 30, 2025				June 30, 2025
	September 30, 2025				September 30, 2025
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
	($ In thousands)
Commercial loans	$	5745,~~717~~584	$	2—	$	5653,~~919~~099	$	67
Construction loans		~~5,411~~—		—		21,~~720~~804		—
Commercial real estate loans		93101,~~809~~615		—		8893,~~772~~100		—
Residential mortgage loans and equity lines		2427,~~057~~517		—		26,~~341~~737		—
Total non-accrual loans	$	~~180~~174,~~994~~716	$	2—	$	174,~~752~~740	$	67

Three Months Ended

~~Six~~Nine Months Ended

June 30, 2024

September 30, 2024

Average Recorded Investment

Interest Income Recognized

Average Recorded Investment

Interest Income Recognized

(In thousands)

($ In thousands)

Commercial loans

724,~~462~~609

1115,~~279~~755

Construction loans

2215,~~998~~499

—

2522,~~548~~174

—

Commercial real estate loans

5778,~~997~~982

7498

5060,~~934~~352

~~122~~220

Residential mortgage loans and equity lines

1621,~~720~~529

—

1517,~~445~~488

—

Total non-accrual loans

~~105~~140,~~177~~619

77102

~~103~~115,~~206~~769

~~127~~229

The following tables present the aging of the loan portfolio by type as of ~~June~~September 30, 2025, and as of December 31, 2024:

June 30, 2025

September 30, 2025

Accruing

30-59 Days Past Due

60-89 Days Past Due

90 Days or More Past Due

Non-accrual Loans

Total Past Due

Loans Not Past Due

Total

(In thousands)

($ In thousands)

Type of Loans:

Commercial loans

1044,~~976~~017

261,~~970~~715

~~6,389~~110

5433,~~536~~690

9879,~~871~~532

3,~~095~~133,~~853~~375

3,~~194~~212,~~724~~907

Construction loans

—2,532

—

~~4,230~~—

42,~~229~~532

~~296~~353,~~896~~683

~~301~~356,~~125~~215

Commercial real estate loans

1126,~~512~~942

3711,~~622~~721

—

93103,~~754~~158

~~142~~141,~~888~~821

10,~~220~~343,~~221~~118

10,~~363~~484,~~109~~939

Residential mortgage loans and equity lines

~~1,432~~38

712,~~320~~266

—

2128,~~633~~784

3041,~~385~~088

56,~~891~~006,~~758~~306

56,~~922~~047,~~143~~394

Installment and other loans

—

3,~~601~~261

Total loans

2373,~~920~~529

7125,~~912~~702

~~6,389~~110

~~174~~165,~~153~~632

~~276~~264,~~373~~973

19,~~508~~839,~~329~~743

1920,~~784~~104,~~702~~716

Table of Contents

	December 31, 2024
	Accruing
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Non-accrual Loans		Total Past Due		Loans Not Past Due		Total
	(In thousands)
	($ In thousands)
Type of Loans:
Commercial loans	$	25,164	$	275	$	2,590	$	59,767	$	87,796	$	3,010,208	$	3,098,004
Construction loans		5,334		—		—		—		5,334		314,315		319,649
Commercial real estate loans		16,525		13,934		1,460		83,128		115,047		9,918,783		10,033,830
Residential mortgage loans and equity lines		39,018		6,651		—		26,266		71,935		5,847,157		5,919,092
Installment and other loans		—		—		—		—		—		5,380		5,380
Total loans	$	86,041	$	20,860	$	4,050	$	169,161	$	280,112	$	19,095,843	$	19,375,955

The Company has adopted ASU 2022-02, "Financial Instruments – Troubled Debt Restructurings ("TDR") and Vintage Disclosures". The Company has elected to apply the guidance prospectively and the practical expedient to exclude the accrued interest receivable balance from the disclosed amortized cost basis of loan modifications to debtors experiencing financial difficulty, consistent with our Allowance for Credit Losses ("ACL") approach discussed further below in this footnote.

Under this guidance on loan modifications made to borrowers experiencing financial difficulty, when a loan held for investment is modified and is considered to be a continuation of the original loan, the Company uses the post-modification contractual rate to derive the effective interest rate when using a discounted cash flow method to determine the allowance for credit loss.

The amendments in this guidance require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan.

The Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in the quantitative baseline. These individually evaluated loans are removed from the pooling approach for the quantitative baseline, and include non-accrual loans, loan modifications made to borrowers experiencing financial difficulty, and other loans as deemed appropriate by management. The Company applies the loan refinancing and restructuring guidance provided in ASU 2022-02 to determine whether a modification made to a borrower results in a new loan or a continuation of an existing loan.

If economic conditions or other factors worsen relative to the assumptions the Company utilized, the expected loan losses will increase accordingly in future periods.

The following table presents the amortized cost of loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable, type of concession granted and the financial effects of the modifications for the three and ~~six~~nine months ended ~~June~~September 30, 2025, and ~~June~~September 30, 2024, by loan class and modification type.

	Three Months Ended June 30, 2025											Financial Effects of Loan Modifications
	Three Months Ended September 30, 2025											Financial Effects of Loan Modifications
	Term Extension		Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total		Modification as a % of Loan Class			Weighted-Average Change in Rate			Weighted-Average Term Extension (in Years)		Weighted-Average Payment Deferral (in Years)
	(In thousands)
	($ In thousands)
Loan Type
Commercial mortgage loans		—		—		2,480		2,480		0.02	%		(4.74	)		3.3		0.0
Commercial loans	$	2,495	$	—	$	13,424	$	15,919		0.50	%		0.00			0.4		0.2
Total	$	—	$	—	$	2,480	$	2,480
Commercial real estate loans		2,060		—		—		2,060		0.02	%		0.00			1.0		0.0
Construction loans		11,197		—		26,140		37,337		10.48	%		(0.31	)		0.6		0.0
Total	$	15,752	$	—	$	39,564	$	55,316

	Six Months Ended June 30, 2025											Financial Effects of Loan Modifications
	Nine Months Ended September 30, 2025											Financial Effects of Loan Modifications
	Term Extension		Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total		Modification as a % of Loan Class			Weighted-Average Change in Rate			Weighted-Average Term Extension (in Years)		Weighted-Average Payment Deferral (in Years)
	(In thousands)
	($ In thousands)
Loan Type
Commercial loans	$	6,~~550~~303	$	—	$	~~974~~13,424	$	719,~~524~~727		0.2461	%		10.2700			21.01		0.12
Commercial mortgage loans		—		—		4,354		4,354		0.04	%		(2.72	)		2.6		0.9
Commercial real estate loans		2,060		—		4,014		6,074		0.06	%		(0.91	)		2.1		0.5
Residential mortgage loans		—		—		217		217		0.00	%		0.00			0.0		21.09
Total	$	6,550	$	—	$	5,545	$	12,095
Construction loans		11,197		—		26,140		37,337		10.48	%		(0.31	)		0.6		0.0
Total	$	19,560	$	—	$	43,795	$	63,355

	Three Months Ended June 30, 2024											Financial Effects of Loan Modifications
	Three Months Ended September 30, 2024											Financial Effects of Loan Modifications
	Term Extension		Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total		Modification as a % of Loan Class			Weighted-Average Change in Rate			Weighted-Average Term Extension (in Years)		Weighted-Average Payment Deferral (in Years)
	(In thousands)
	($ In thousands)
Loan Type
Commercial loans	$	~~4,883~~—	$	—135	$	—	$	~~4,883~~135		0.1600	%		(0.7400	)		10.50		0.06
Total	$	~~4,883~~—	$	—135	$	—	$	~~4,883~~135

Table of Contents

	Six Months Ended June 30, 2024											Financial Effects of Loan Modifications
	Nine Months Ended September 30, 2024											Financial Effects of Loan Modifications
	Term Extension		Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total		Modification as a % of Loan Class			Weighted-Average Change in Rate			Weighted-Average Term Extension (in Years)		Weighted-Average Payment Deferral (in Years)
	(In thousands)
	($ In thousands)
Loan Type
Commercial loans	$	46,~~883~~749	$	—135	$	~~1,836~~974	$	67,~~719~~858		0.2225	%		(01.0604	)		1.89		0.31
Residential mortgage loans		—		221		—		221		0.00	%		(0.1518	)		0.0		2.0
Total	$	46,~~883~~749	$	~~221~~356	$	~~1,836~~974	$	68,~~940~~079

The Company considers a loan to be in payment default once it is 60 to 90 days contractually past due under the modified terms. The Company tracks the performance of modified loans.

The following table presents information on loans that defaulted during the three and six months ended June 30, 2025, that received modifications within the twelve months preceding payment default. There were no loans that received modifications within the twelve months preceding payment default that subsequently defaulted during the three and ~~six~~nine months ended ~~June~~September 30, 2025, and September 30, 2024.

Three Months Ended June 30, 2025

Term Extension

Payment Delay

Combo-Rate Reduction/Term Extension/Payment Delay

Total

(In thousands)

Loan Type

Commercial loans

—

Total

—

	Six Months Ended June 30, 2025
	Term Extension		Payment Delay		Combo-Rate Reduction/Term Extension/Payment Delay		Total
	(In thousands)
Loan Type
Commercial loans	$	1,610	$	—	$	—	$	1,610
Total	$	1,610	$	—	$	—	$	1,610

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification.

The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of loans that were modified in the twelve months ended ~~June~~September 30, 2025, and 2024.

	As of June 30, 2025
	As of September 30, 2025
	Current		30–89 Days Past Due		90+ Days Past Due		Total
	(In thousands)
	($ In thousands)
Loan Type
Commercial loans	$	512,~~914~~227	$	—7,500	$	~~1,610~~—	$	719,~~524~~727
Commercial real estate loans		46,~~354~~074		—		—		46,~~354~~074
Construction loans		37,337		—		—		37,337
Residential mortgage loans		217		—		—		217
Total	$	1055,~~485~~855	$	—7,500	$	~~1,610~~—	$	1263,~~095~~355

	As of June 30, 2024
	As of September 30, 2024
	Current		30–89 Days Past Due		90+ Days Past Due		Total
	(In thousands)
	($ In thousands)
Loan Type
Commercial loans	$	67,~~719~~858	$	—	$	—	$	67,~~719~~858
Residential mortgage loans		221						221
Total	$	68,~~940~~079	$	—	$	—	$	68,~~940~~079

Table of Contents

Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty.

As of ~~June~~September 30, 2025, there were no commitments to lend additional funds to borrowers experiencing financial difficulty and whose loans were modified.

As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk grade to each loan. Loans are risk rated based on analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of sources of repayment, the borrower’s current financial and liquidity status and other relevant information. The risk rating categories can be generally described by the following grouping for non-homogeneous loans:

●

Pass/Watch – These loans range from minimal credit risk to higher than average, but still acceptable, credit risk. The loans have sufficient sources of repayment to repay the loans in full, in accordance with all the terms and conditions and remain currently well protected by collateral values.

●

Special Mention – Borrower is fundamentally sound, and loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support.

●

Substandard – These loans are inadequately protected by current sound net worth, paying capacity, or collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss.

●

Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan), a loss classification is deferred until the situation is better defined.

●

Loss – These loans are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted.

The following table summarizes the Company’s loans held for investment and current year-to-date gross write-offs as of ~~June~~September 30, 2025, and December 31, 2024, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification. Revolving Loans that are converted to term loans presented in the table below are excluded from the term loans by vintage year columns.

	Loans Amortized Cost Basis by Origination Year
June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term Loans		Total
September 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term Loans		Total
	(In thousands)
	($ In thousands)
Commercial loans
Pass/Watch	$	~~166~~256,~~901~~492	$	~~288~~214,~~266~~742	$	~~241~~220,~~500~~140	$	~~163~~153,~~651~~970	$	~~166~~168,~~698~~737	$	~~121~~108,~~416~~837	$	1,~~785~~824,~~634~~424	$	76,~~520~~729	$	2,~~941~~954,~~586~~071
Special Mention		3,~~500~~228		—36,059		—		21,~~834~~601		—417		43,~~121~~973		~~108~~114,~~087~~509		—		~~118~~159,~~542~~787
Substandard		45—		109,~~750~~666		2119,~~661~~349		107,~~672~~700		~~3,751~~11		2919,~~508~~688		5534,~~325~~761		~~562~~453		~~132~~91,~~274~~628
Total	$	170,446	$	299,016	$	263,161	$	177,157	$	170,449	$	155,045	$	1,949,046	$	8,082	$	3,192,402
Doubtful		—		—		—		2,135		—		320		—		—		2,455
YTD gross write-offs	$	—	$	20	$	208	$	417	$	2,164	$	6,080	$	2,572	$	—	$	11,461
Total	$	259,720	$	260,467	$	239,489	$	165,406	$	169,165	$	132,818	$	1,973,694	$	7,182	$	3,207,941
YTD gross write-offs	$	—	$	88	$	398	$	416	$	4,412	$	10,139	$	12,181	$	—	$	27,634
Construction loans
Pass/Watch	$	1169,~~888~~969	$	5263,~~571~~967	$	6159,~~413~~170	$	9387,~~629~~207	$	2930,~~452~~120	$	~~3,108~~—	$	21,~~637~~177	$	—	$	~~254~~311,~~698~~610
Special Mention		—		—		—7,556		2,~~384~~532		~~30,146~~—		—		—		—		3210,~~530~~088
Substandard		—		—		~~4,230~~—		—		—26,140		86,~~439~~636		—		—		1232,~~669~~776
Total	$	1169,~~888~~969	$	5263,~~571~~967	$	6566,~~643~~726	$	9689,~~013~~739	$	5956,~~598~~260	$	116,~~547~~636	$	21,~~637~~177	$	—	$	~~299~~354,~~897~~474
YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate loans
Pass/Watch	$	1,~~020~~429,~~084~~454	$	1,~~440~~384,~~094~~602	$	1,~~852~~762,~~003~~220	$	1,~~571~~540,~~769~~316	$	1,~~343~~312,~~369~~358	$	2,~~542~~329,~~860~~200	$	~~168~~182,~~059~~836	$	—	$	9,~~938~~940,~~238~~986
Special Mention		1922,~~687~~430		~~177~~27,236		1137,~~610~~705		5481,~~989~~451		3550,~~551~~152		1742,~~973~~896		1721,~~746~~310		—		~~157~~283,~~733~~180
Substandard		2,~~480~~607		1514,~~053~~980		1114,~~345~~218		6452,~~036~~291		6350,~~035~~256		9492,~~579~~238		5,~~704~~134		1,~~873~~528		~~258~~233,~~105~~252
Total	$	1,042,251	$	1,455,324	$	1,874,958	$	1,690,794	$	1,441,955	$	2,655,412	$	191,509	$	1,873	$	10,354,076
Doubtful		—		—		—		—		—		18,251		—		—		18,251
YTD gross write-offs	$	—	$	—	$	—	$	—	$	930	$	2,909	$	—	$	—	$	3,839
Total	$	1,454,491	$	1,426,818	$	1,814,143	$	1,674,058	$	1,412,766	$	2,482,585	$	209,280	$	1,528	$	10,475,669
YTD gross write-offs	$	—	$	—	$	—	$	—	$	930	$	3,223	$	—	$	—	$	4,153
Residential mortgage loans
Pass/Watch	$	~~449~~777,~~805~~862	$	~~565~~523,~~116~~181	$	~~953~~930,~~064~~890	$	~~965~~932,~~617~~702	$	~~728~~702,~~568~~965	$	21,~~001~~907,~~003~~279	$	—	$	—	$	5,~~663~~774,~~173~~879
Special Mention		—		—		—		—		—		1,~~604~~596		—		—		1,~~604~~596
Substandard		3149		12,~~693~~169		32,~~536~~476		28,~~294~~945		34,~~794~~818		1620,~~611~~577		—		—		2739,~~959~~034
Total	$	~~449~~777,~~836~~911	$	~~566~~525,~~809~~350	$	~~956~~933,~~600~~366	$	~~967~~941,~~911~~647	$	~~732~~707,~~362~~783	$	21,~~019~~929,~~218~~452	$	—	$	—	$	5,~~692~~815,~~736~~509
YTD gross write-offs	$	—	$	74	$	—	$	—	$	—	$	—	$	—	$	—	$	74
Equity lines
Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	—	$	~~212~~214,~~868~~160	$	1615,~~720~~620	$	229,~~588~~780
Substandard		—		—		—		—		—		—		~~954~~2,858		~~137~~237		13,~~091~~095
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	~~213~~217,~~822~~018	$	1615,857	$	~~230~~232,~~679~~875
YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Installment and other loans
Pass/Watch	$	—1,778	$	—1,403	$	—	$	~~1,078~~80	$	—	$	—	$	—	$	—	$	13,~~078~~261
Total	$	—1,778	$	—1,403	$	—	$	~~1,078~~80	$	—	$	—	$	—	$	—	$	13,~~078~~261
YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total loans	$	12,~~674~~563,~~421~~869	$	2,~~373~~278,~~720~~005	$	3,~~160~~053,~~362~~724	$	2,~~932~~870,~~953~~930	$	2,~~404~~345,~~364~~974	$	4,~~841~~551,~~222~~491	$	2,~~357~~401,~~014~~169	$	2624,~~812~~567	$	1920,~~770~~089,~~868~~729
Total YTD gross write-offs	$	—	$	94162	$	~~208~~398	$	~~417~~416	$	35,~~094~~342	$	813,~~989~~362	$	212,~~572~~181	$	—	$	1531,~~374~~861

Table of Contents

	Loans Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		~~2021~~2022		~~2020~~2021		~~2019~~2020		Prior		Revolving Loans		Revolving Converted to Term Loans		Total
	(In thousands)
	($ In thousands)
Commercial loans
Pass/Watch	$	400,836	$	237,303	$	203,190	$	201,837	$	27,359	$	90,724	$	1,675,260	$	7,804	$	2,844,313
Special Mention		—		17,424		740		—		9,117		5,139		92,632		—		125,052
Substandard		50		5,070		12,104		6,773		22,357		6,256		67,553		222		120,385
Doubtful		1,857		—		—		3,118		—		—		—		—		4,975
Total	$	402,743	$	259,797	$	216,034	$	211,728	$	58,833	$	102,119	$	1,835,445	$	8,026	$	3,094,725
YTD gross write-offs	$	188	$	1,586	$	3,151	$	8,950	$	257	$	64	$	12,730	$	—	$	26,926
Construction loans
Pass/Watch	$	22,562	$	55,835	$	126,200	$	57,546	$	3,021	$	—	$	—	$	—	$	265,164
Special Mention		—		—		—		35,569		13,837		—		—		—		49,406
Substandard		—		4,230		—		—		—		—		—		—		4,230
Total	$	22,562	$	60,065	$	126,200	$	93,115	$	16,858	$	—	$	—	$	—	$	318,800
YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate loans
Pass/Watch	$	1,463,225	$	1,987,280	$	1,724,563	$	1,428,124	$	800,645	$	2,108,143	$	180,394	$	—	$	9,692,374
Special Mention		8,805		8,292		28,465		16,462		24,844		19,888		9,939		—		116,695
Substandard		—		11,364		54,269		57,929		6,946		78,737		8,152		—		217,397
Total	$	1,472,030	$	2,006,936	$	1,807,297	$	1,502,515	$	832,435	$	2,206,768	$	198,485	$	—	$	10,026,466
YTD gross write-offs	$	—	$	—	$	—	$	—	$	296	$	4,173	$	—	$	—	$	4,469
Residential mortgage loans
Pass/Watch	$	642,568	$	1,020,419	$	1,014,842	$	781,218	$	452,623	$	1,745,923	$	—	$	—	$	5,657,593
Special Mention		—		—		—		—		33		1,585		—		—		1,618
Substandard		397		2,513		4,362		5,183		4,191		13,436		—		—		30,082
Total	$	642,965	$	1,022,932	$	1,019,204	$	786,401	$	456,847	$	1,760,944	$	—	$	—	$	5,689,293
YTD gross write-offs	$	—	$	—	$	—	$	59	$	—	$	—	$	—	$	—	$	59
Equity lines
Pass/Watch	$	—	$	—	$	72	$	—	$	—	$	—	$	211,374	$	16,277	$	227,723
Special Mention		—		—		—		—		—		—		—		11		11
Substandard		—		—		—		—		—		—		2,927		161		3,088
Total	$	—	$	—	$	72	$	—	$	—	$	—	$	214,301	$	16,449	$	230,822
YTD gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	3
Installment and other loans
Pass/Watch	$	5,264	$	—	$	44	$	—	$	—	$	—	$	—	$	—	$	5,308
Total	$	5,264	$	—	$	44	$	—	$	—	$	—	$	—	$	—	$	5,308
YTD gross write-offs	$	—	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	15
Total loans	$	2,545,564	$	3,349,730	$	3,168,851	$	2,593,759	$	1,364,973	$	4,069,831	$	2,248,231	$	24,475	$	19,365,414
Total YTD gross write-offs	$	188	$	1,586	$	3,166	$	9,009	$	553	$	4,237	$	12,733	$	—	$	31,472

Table of Contents

Allowance for Credit Losses

The Company has an allowance framework under ASC Topic 326 for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses inherent in the Company’s relevant financial assets. The forward-looking concept of current expected credit loss (“CECL”) approach requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances.

The ACL is the combination of the allowance for loan losses and the reserve for unfunded loan commitments. The allowance for loan losses is reported as a reduction of the amortized cost basis of loans, while the reserve for unfunded loan commitments is included within "other liabilities" on the Consolidated Balance Sheets (Unaudited). The amortized cost basis of loans does not include accrued interest receivable, which is included in "accrued interest receivable" on the Consolidated Balance Sheets. The "Provision for credit losses" on the Consolidated Statements of Operations and Comprehensive Income (Unaudited) is a combination of the provision for loan losses and the provision for unfunded loan commitments.

Under the Company’s CECL approach, management estimates the ACL using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable economic forecasts that vary by loan portfolio. We use economic forecasts from Moody’s Analytics in this process. The economic forecast is updated monthly; therefore, the one used for each quarter-end calculation is generally based on a one-month lag based on the timing of when the forecast is released. The Company does not consider a one-month lag to create a material difference but considers any subsequent material changes to our estimated loss forecasts as deemed appropriate. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in gross domestic product (or “GDP”), unemployment rates, property values, or other relevant factors.

Under the CECL methodology, quantitative and qualitative loss factors are applied to our population of loans on a collective pool basis when similar risk characteristics exist. The Company evaluates loans for expected credit losses on an individual basis if, based on current information and events, the loan does not share similar credit risk characteristics with other loans. The Company may choose to measure expected credit losses on an individual loan basis by using one of the following methods: (1) the present value of the expected future cash flows of the loan discounted at the loan’s original effective interest rate, or (2) if the loan is collateral dependent, the fair value of the collateral less costs to sell. For loans that are not collateral-dependent, the Company uses the present value of future cash flows.

Quantitative Factors

Under the Company’s CECL methodology, nine portfolio segments with similar risk characteristics are evaluated for expected loss. Six portfolios are modeled using econometric models and three smaller portfolios are evaluated using a simplified loss-rate method that calculates lifetime expected credit losses for the respective pools (simplified approach). The six portfolios subject to econometric modeling include residential mortgages; commercial and industrial loans (“C&I”); construction loans; commercial real estate (“CRE”) for multifamily loans; CRE for owner-occupied loans; and other CRE loans. We estimate the probability of default during the reasonable and supportable forecast period using separate econometric regression models developed to correlate macroeconomic variables, (GDP, unemployment, CRE prices and residential mortgage prices) to historical credit performance for each of the six loan portfolios from the fourth quarter of 2007 to the fourth quarter of 2024. Loss given default rates are computed based on the charge-offs recognized ~~divided~~and bythen applied to the expected exposure at default of defaulted loans starting with the fourth quarter of 2007 through the ~~fourth~~third quarter of ~~2024~~2025. The probability of default and the loss given default rates are applied to the expected amount at default at the loan level based on contractual scheduled payments and estimated prepayments. The amounts so calculated comprise the quantitative portion of the allowance for credit losses.

The Company’s CECL methodology utilizes an eight-quarter reasonable and supportable (“R&S”) forecast period, and a four-quarter reversion period. Management relies on multiple forecasts, blending them into a single loss estimate. Generally speaking, the blended scenario approach would include the Baseline, the Alternative Scenario 1 – Upside – 10th Percentile and the Alternative Scenario 3 – Downside – 90th Percentile forecasts. After the R&S period, the Company reverts linearly for the four-quarter reversion period to the long-term loss rates for each of the six portfolios of loans.

The Company’s CECL methodology estimates expected credit losses over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

The simplified approach portfolios include Small Business Administration (“SBA”) loans, Home Equity Lines of Credit (“HELOCs”) and cash-secured loans, which are not modelled econometrically due to the low loss history for these three pools of loans. The forecasted loss rate is based on the forecasted GDP and unemployment rates during the first eight quarters of the portfolio’s contractual life, reversion loss rates for the next four quarters of the portfolio’s contractual life on a linear declining rate, and the long-term loss rate projected over the remainder of the portfolio’s contractual life.

Qualitative Factors

Under the Company’s CECL methodology, the qualitative portion of the reserve on pooled loans represents management’s judgment of additional considerations to account for internal and external risk factors that are not adequately measured in the quantitative reserve. The qualitative loss factors consider idiosyncratic risk factors, conditions that may not be reflected in quantitatively derived results, or other relevant factors to seek to ensure the allowance for credit losses reflects our best estimate of current expected credit losses. The qualitative reserves include reserves for policy exceptions, experience of management and staff, level of competition in the lending environment, weak risk identification, lack of historical loss experience with residential mortgage loans made to non-U.S. residents, oil & gas, the higher risk characteristics of purchased syndicated loans, model uncertainty, and loans with potential risk of loss given the current environment, including CRE and Office loans, but have not degraded to the point of qualifying for a specific reserve. Current and forecasted economic trends and underlying market values for collateral dependent loans also are considered within the econometric models described above.

Table of Contents

The Company’s CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things:

●

Segmenting the loan portfolio

●

Determining the amount of loss history to consider

●

Selecting predictive econometric regression models that use appropriate macroeconomic variables

●

Determining the methodology to forecast prepayments

●

Selecting the most appropriate economic forecast scenario

●

Determining the length of the R&S forecast and reversion periods

●

Estimating expected utilization rates on unfunded loan commitments

●

Assessing relevant and appropriate qualitative factors.

In addition, the CECL methodology is dependent on economic forecasts that are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered by management to be appropriate, there can be no assurance that it will be sufficient to absorb future losses.

Management believes the allowance for credit losses is appropriate for the CECL in our loan portfolio and associated unfunded commitments, and the credit risk ratings and inherent loss rates currently assigned are reasonable and appropriate as of the reporting date. The criteria for default may include any one of the following: on nonaccrual status, modifications to borrowers experiencing financial difficulty, or payment delinquency of 90 days or more.

Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for loan losses on an individual loan basis. Generally, the allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and the fair value of the collateral. For loans evaluated individually, the Company uses one of two different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; or (2) the present value of expected future cash flows. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows.

Unfunded Loan Commitments

Unfunded loan commitments are generally related to providing credit facilities to clients of the Bank and are not actively traded financial instruments. These unfunded commitments are disclosed as off-balance sheet financial instruments in Note 9 in the Notes to Consolidated Financial Statements (Unaudited).

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company, using the same loss factors as used for the allowance for loan losses. The reserve for unfunded loan commitments uses a one-year historical usage rate of the unfunded commitments during the contractual life of the commitments. The allowance for unfunded commitments is included in “other liabilities” on the Consolidated Balance Sheets. Changes in the allowance for unfunded commitments are included in the provision for credit losses.

The following tables set forth activity in the allowance for loan losses by portfolio segment for the three and ~~six~~nine months ended ~~June~~September 30, 2025, and ~~June~~September 30, 2024.

										Residential
							Commercial			Mortgage Loans			Installment
	Commercial			Construction			Real Estate			and			and Other
	Loans			Loans			Loans			Equity Lines			Loans			Total
	(In thousands)
	($ In thousands)
Allowance for Loan Losses:
March 31, 2025 Ending Balance	$	69,023		$	8,540		$	80,901		$	15,455		$	17		$	173,936
(Reversal)/provision for expected credit losses		(19,260	)		(3,106	)		29,621			5,081			—			12,336
Charge-offs		(9,117	)		—			(3,839	)		(74	)		—			(13,030	)
Recoveries		196			—			90			3			—			289
Net (charge-offs)/recoveries		(8,921	)		—			(3,749	)		(71	)		—			(12,741	)
June 30, 2025 Ending Balance	$	40,842		$	5,434		$	106,773		$	20,465		$	17		$	173,531
Provision/(reversal) for expected credit losses		13,855			966			11,054			2,892			(5	)		28,762
Charge-offs		(16,173	)		—			(314	)		—			—			(16,487	)
Recoveries		547			5			285			4			—			841
Net (charge-offs)/recoveries		(15,626	)		5			(29	)		4			—			(15,646	)
September 30, 2025 Ending Balance	$	39,071		$	6,405		$	117,798		$	23,361		$	12		$	186,647
Allowance for unfunded credit commitments:
March 31, 2025 Ending Balance	$	9,057		$	1,971		$	—		$	—		$	—		$	11,028
(Reversal)/provision for expected credit losses		(1,467	)		277			54			—			—			(1,136	)
June 30, 2025 Ending Balance	$	7,590		$	2,248		$	54		$	—		$	—		$	9,892
(Reversal)/provision for expected credit losses		(872	)		698			143			—			—			(31	)
September 30, 2025 Ending Balance	$	6,718		$	2,946		$	197		$	—		$	—		$	9,861

Table of Contents

										Residential
							Commercial			Mortgage Loans			Installment
	Commercial			Construction			Real Estate			and			and Other
	Loans			Loans			Loans			Equity Lines			Loans			Total
	(In thousands)
	($ In thousands)
Allowance for Loan Losses:
March 31, 2024 Ending Balance	$	51,290		$	8,539		$	77,049		$	17,701		$	10		$	154,589
June 30, 2024 Ending Balance	$	48,588		$	8,912		$	78,465		$	17,415		$	23		$	153,403
Provision/(reversal) for expected credit losses		54,~~429~~872			~~373~~(402	)		18,~~416~~444			~~(419~~1,554	)		1364			614,~~812~~532
Charge-offs		(82,~~257~~666	)		—			—(1,746	)		—(59	)		—(7	)		(84,~~257~~478	)
Recoveries		~~126~~88			—			—180			~~134~~7			—1			~~260~~276
Net (charge-offs)/recoveries		(82,~~131~~578	)		—			—(1,566	)		~~134~~(52	)		—(6	)		(74,~~997~~202	)
June 30, 2024 Ending Balance	$	48,588		$	8,912		$	78,465		$	17,416		$	23		$	153,404
September 30, 2024 Ending Balance	$	50,882		$	8,510		$	85,343		$	18,917		$	81		$	163,733
Allowance for unfunded credit commitments:
March 31, 2024 Ending Balance	$	7,460		$	2,326		$	—		$	—		$	—		$	9,786
Provision/(reversal) for expected credit losses		33			(245	)		—			—			—			(212	)
June 30, 2024 Ending Balance	$	7,493		$	2,081		$	—		$	—		$	—		$	9,574
Provision/(reversal) for expected credit losses		208			(240	)		—			—			—			(32	)
September 30, 2024 Ending Balance	$	7,701		$	1,841		$	—		$	—		$	—		$	9,542

										Residential
							Commercial			Mortgage Loans			Installment
	Commercial			Construction			Real Estate			and			and Other
	Loans			Loans			Loans			Equity Lines			Loans		Total
	(In thousands)
	($ In thousands)
Allowance for Loan Losses:
December 31, 2024 Ending Balance	$	57,796		$	8,185		$	79,597		$	16,181		$	6	$	161,765
(Reversal)/provision for expected credit losses		(5,957	)		(2,752	)		30,834			4,348			11		26,484
Provision/(reversal) for expected credit losses		7,897			(1,786	)		41,889			7,240			6		55,246
Charge-offs		(1127,~~461~~634	)		—			(34,~~839~~153	)		(74	)		—		(1531,~~374~~861	)
Recoveries		~~464~~1,012			16			~~181~~465			1014			—		~~656~~1,497
Net (charge-offs)/recoveries		(1026,~~997~~622	)		16			(3,~~658~~688	)		(6460	)		—		(1430,~~718~~364	)
June 30, 2025 Ending Balance	$	40,842		$	5,434		$	106,773		$	20,465		$	17	$	173,531
September 30, 2025 Ending Balance	$	39,071		$	6,405		$	117,798		$	23,361		$	12	$	186,647
Allowance for unfunded credit commitments:
December 31, 2024 Ending Balance	$	7,780		$	1,896		$	—		$	—		$	—	$	9,676
(Reversal)/provision for expected credit losses		(~~190~~1,062	)		~~352~~1,050			54197			—			—		~~216~~185
June 30, 2025 Ending Balance	$	7,590		$	2,248		$	54		$	—		$	—	$	9,892
September 30, 2025 Ending Balance	$	6,718		$	2,946		$	197		$	—		$	—	$	9,861

										Residential
							Commercial			Mortgage Loans			Installment
	Commercial			Construction			Real Estate			and			and Other
	Loans			Loans			Loans			Equity Lines			Loans			Total
	(In thousands)
	($ In thousands)
Allowance for Loan Losses:
December 31, 2023 Ending Balance	$	53,791		$	8,180		$	74,428		$	18,140		$	23		$	154,562
Provision/(reversal) for expected credit losses		4,055			732			4,288			(1,096	)		—			7,979
Provision for expected credit losses		8,927			330			12,731			459			64			22,511
Charge-offs		(1012,~~196~~862	)		—			(~~251~~1,997	)		(362	)		—(7	)		(1014,~~450~~928	)
Recoveries		~~938~~1,026			—			—181			~~375~~380			—1			1,~~313~~588
Net (charge-offs)/recoveries		(911,~~258~~836	)		—			(~~251~~1,816	)		~~372~~318			—(6	)		(913,~~137~~340	)
June 30, 2024 Ending Balance	$	48,588		$	8,912		$	78,465		$	17,416		$	23		$	153,404
September 30, 2024 Ending Balance	$	50,882		$	8,510		$	85,343		$	18,917		$	81		$	163,733
Allowance for unfunded credit commitments:
December 31, 2023 Ending Balance	$	6,888		$	2,165		$	—		$	—		$	—		$	9,053
Provision/(reversal) for expected credit losses		~~605~~813			(84324	)		—			—			—			~~521~~489
June 30, 2024 Ending Balance	$	7,493		$	2,081		$	—		$	—		$	—		$	9,574
September 30, 2024 Ending Balance	$	7,701		$	1,841		$	—		$	—		$	—		$	9,542

Table of Contents

Loans Held-for-Sale

At the time of commitment to originate or purchase a loan, the loan is determined to be held for investment if it is in the Company’s intent to hold the loan to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s evaluation processes, including asset/liability and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. AsThere ~~of June 30, 2025, there~~ were ~~$13.3 million~~no of loans held-for-sale, ~~which~~as ~~were comprised~~ of ~~commercial loans and commercial real estate loans.~~ ~~There~~September ~~were~~30, no2025, ~~loans held-for-sale as of~~and December 31, 2024.

Loan Transfers, Sales and Purchases

The Company purchases and sells loans in the secondary market in the ordinary course of business. From time to time, purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to the allowance for loan losses are recorded, when appropriate. During the ~~six~~nine months ended ~~June~~September 30, 2025, the Company transferred $442.42 million in commercial loans and $8.9 million in commercial real estate loans held for investment to loans held for sale. Net ~~gains~~losses on sale of loans~~, excluding the lower of cost or fair value adjustments,~~ were $~~142~~57 thousand for the ~~six~~nine months ended ~~June~~September 30, 2025. There were no lower of cost or fair value adjustments during the ~~six~~nine months ended ~~June~~September 30, 2025.

9. Commitments and Contingencies

From time to time, Bancorp and its subsidiaries are parties to litigation that arises in the ordinary course of business or otherwise is incidental to various aspects of its operations. Based upon information available to the Company and its review of any such litigation with counsel, management presently believes that the liability relating to such litigation, if any, would not be expected to have a material adverse impact on the Company’s consolidated financial condition, results of operations or liquidity taken as a whole. The outcome of litigation and other legal and regulatory matters is inherently uncertain, however, and it is possible that one or more of the legal matters currently pending or threatened against the Company could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity taken as a whole.

Although the Company establishes accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated, the Company does not have accruals for all legal proceedings where there is a risk of loss. In addition, amounts accrued may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued for legal loss contingencies.

In the normal course of business, the Company from time to time becomes a party to financial instruments with off-balance sheet risk to meet the financing needs of its clients. These financial instruments include commitments to extend credit in the form of loans, or through commercial or standby letters of credit and financial guarantees. These instruments represent varying degrees of exposure to risk in excess of the amounts included in the accompanying Consolidated Balance Sheets. The contractual or notional amount of these instruments indicates a level of activity associated with a particular class of financial instrument and is not a reflection of the level of expected losses, if any.

The Company’s unfunded commitments related to investments in qualified affordable housing and alternative energy partnerships were $9397.72 million and $99.5 million as of ~~June~~September 30, 2025, and December 31, 2024, respectively.

10. Borrowed Funds

Borrowings from the Federal Home Loan Bank (“FHLB”) – There were $~~412~~125.0 million over-night borrowings from the FHLB as of ~~June~~September 30, 2025, and no over-night borrowings as of December 31, 2024. Advances from the FHLB were $~~412~~190.0 million at a weighted average rate of 4.5745% as of ~~June~~September 30, 2025, and $60.0 million at a weighted average rate of 5.08% as of December 31, 2024. As of ~~June~~September 30, 2025, final maturity for the FHLB advances was $~~412~~190.0 million in ~~July~~October 2025. Our unused borrowing capacity from the FHLB as of ~~June~~September 30, 2025, and December 31, 2024, was $7.0050 billion and $7.47 billion, respectively, and unpledged securities at ~~June~~September 30, 2025, and December 31, 2024, was $1.6362 billion and $1.53 billion, respectively.

Junior Subordinated Notes – The Company established three special purpose trusts in 2003 and two in 2007 for the purpose of issuing Guaranteed Preferred Beneficial Interests in their Subordinated Debentures to outside investors (“Capital Securities”). The proceeds from the issuance of the Capital Securities as well as our purchase of the common stock of the special purpose trusts were invested in Junior Subordinated Notes of the Company (“Junior Subordinated Notes”). The trusts exist for the purpose of issuing Capital Securities and investing in Junior Subordinated Notes. Subject to some limitations, payment of distributions out of the monies held by the trusts and payments on liquidation of the trusts, or the redemption of the Capital Securities, are guaranteed by the Company to the extent the trusts have funds on hand at such time. The obligations of the Company under the guarantees and the Junior Subordinated Notes are subordinate and junior in right of payment to all indebtedness of the Company and are structurally subordinated to all liabilities and obligations of the Company’s subsidiaries. The Company has the right to defer payments of interest on the Junior Subordinated Notes at any time or from time to time for a period of up to twenty consecutive quarterly periods with respect to each deferral period. Under the terms of the Junior Subordinated Notes, the Company may not, with certain exceptions, declare or pay any dividends or distributions on its capital stock or purchase or acquire any of its capital stock if it has deferred payment of interest on any Junior Subordinated Notes.

At ~~June~~September 30, 2025, Junior Subordinated Notes totaled $119.1 million with a weighted average interest rate of 6.8584%, compared to $119.1 million with a weighted average rate of 7.75% at December 31, 2024. The Junior Subordinated Notes have a stated maturity term of 30 years.

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11. Income Taxes

The effective tax rate for the first ~~six~~ nine months of 2025 was 1918.78% compared to 910.48% for the first ~~six~~ nine months of 2024. The effective tax rate for the first ~~six~~ nine months of 2025 includes the impact of low-income housing tax credits and for the first ~~six~~ nine months of 2024 includes the impact of alternative energy investment and low-income housing tax credits.

The Company’s tax returns are open for audit by the Internal Revenue Service back to 2022 and by the California Franchise Tax Board and other states where the Company files state tax returns back to 2021.

It is reasonably possible that unrecognized tax benefits could change significantly over the next twelve months. The Company does not expect that any such changes would have a material impact on its annual effective tax rate.

12. Fair Value Measurements and Fair Value of Financial Instruments

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily securities available-for-sale and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for individually evaluated loans and other real estate owned and also to record impairment on certain assets, such as goodwill, CDI, and other long-lived assets.

The Company used valuation methodologies to measure assets at fair value under ASC Topic 820 and ASC Topic 825, as amended by ASU 2016-01 and ASU 2018-03, to estimate the fair value of financial instruments not recorded at fair value. The fair value of the Company’s assets and liabilities is classified and disclosed in one of the following three categories:

●

Level 1 – Quoted prices in active markets for identical assets or liabilities.

●

Level 2 – Observable prices in active markets for similar assets or liabilities; prices for identical or similar assets or liabilities in markets that are not active; directly observable market inputs for substantially the full term of the asset and liability; market inputs that are not directly observable but are derived from or corroborated by observable market data.

●

Level 3 – Unobservable inputs based on the Company’s own judgment about the assumptions that a market participant would use.

The classification of assets and liabilities within the hierarchy is based on whether inputs to the valuation methodology used are observable or unobservable, and the significance of those inputs in the fair value measurement. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements.

Financial assets and liabilities measured at fair value on a recurring basis:

The Company uses the following methodologies to measure the fair value of its financial assets and liabilities on a recurring basis:

Securities Available-for-Sale and Equity Securities - For certain actively traded agency preferred stocks, mutual funds, U.S. Treasury securities, and other equity securities, the Company measures the fair value based on quoted market prices in active exchange markets at the reporting date, a Level 1 measurement. The Company also measures securities by using quoted market prices for similar securities or dealer quotes, a Level 2 measurement. This category generally includes U.S. Government agency securities, U.S. Government sponsored entities, state and municipal securities, mortgage-backed securities (“MBS”), collateralized mortgage obligations and corporate bonds.

Interest Rate Swaps – The Company measures the fair value of interest rate swaps using third party models with observable market data, a Level 2 measurement.

Currency Option Contracts and Foreign Exchange Contracts - The Company measures the fair value of currency option contracts and foreign exchange contracts based on observable market rates on a recurring basis, a Level 2 measurement.

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The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of ~~June~~September 30, 2025, and December 31, 2024:

	June 30, 2025
	September 30, 2025
	Fair Value Measurements Using						Total Fair Value
	Level 1		Level 2		Level 3		Measurements
	(In thousands)
	($ In thousands)
Assets
Securities AFS
U.S. Treasury securities	$	~~768~~776,~~249~~833	$	—	$	—	$	~~768~~776,~~249~~833
U.S. government agency entities		—		76,~~934~~860		—		76,~~934~~860
Mortgage-backed securities		—		658,431		—		658,431
U.S. government sponsored entities		—		25,005		—		25,005
Collateralized mortgage obligations		—		23,927		—		23,927
Mortgage-backed securities		—		645,575		—		645,575
Corporate debt securities		—		189,892		—		189,892
Collateralized mortgage obligations		—		23,302		—		23,302
Total securities AFS		768,249		880,184		—		1,648,433
Corporate debt securities		—		165,875		—		165,875
Total securities AFS		776,833		866,617		—		1,643,450
Equity securities
Mutual funds		5,~~633~~686		—		—		5,~~633~~686
Preferred stock of government sponsored entities		910,~~012~~278		—		—		910,~~012~~278
Other equity securities		1214,~~665~~608		—		—		1214,~~665~~608
Total equity securities		2730,~~310~~572		—		—		2730,~~310~~572
Interest rate swaps		—		3129,~~571~~162		—		3129,~~571~~162
Foreign exchange contracts		—		~~1,522~~321		—		~~1,522~~321
Total assets	$	~~795~~807,~~559~~405	$	~~913~~896,~~277~~100	$	—	$	1,~~708~~703,~~836~~505
Liabilities
Interest rate swaps	$	—	$	3431,~~108~~815	$	—	$	3431,~~108~~815
Foreign exchange contracts		—		~~247~~185		—		~~247~~185
Total liabilities	$	—	$	3432,~~355~~000	$	—	$	3432,~~355~~000

	December 31, 2024
	Fair Value Measurements Using						Total Fair Value
	Level 1		Level 2		Level 3		Measurements
	(In thousands)
	($ In thousands)
Assets
Securities AFS
U.S. Treasury securities	$	621,462	$	—	$	—	$	621,462
U.S. government agency entities		—		9,149		—		9,149
Mortgage-backed securities		—		684,016		—		684,016
Collateralized mortgage obligations		—		24,556		—		24,556
Corporate debt securities		—		207,945		—		207,945
Total securities AFS		621,462		925,666		—		1,547,128
Equity securities
Mutual funds		5,532		—		—		5,532
Preferred stock of government sponsored entities		7,287		—		—		7,287
Other equity securities		20,071		—		—		20,071
Total equity securities		32,890		—		—		32,890
Interest rate swaps		—		39,958		—		39,958
Foreign exchange contracts		—		490		—		490
Total assets	$	654,352	$	966,114	$	—	$	1,620,466
Liabilities
Interest rate swaps	$	—	$	36,319	$	—	$	36,319
Foreign exchange contracts		—		785		—		785
Total liabilities	$	—	$	37,104	$	—	$	37,104

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Financial assets and liabilities measured at estimated fair value on a non-recurring basis:

Certain assets or liabilities are required to be measured at estimated fair value on a nonrecurring basis subsequent to initial recognition. Generally, these adjustments are the result of lower-of-cost-or-fair value or other impairment write-downs of individual assets. In determining the estimated fair values during the period, the Company determined that substantially all the changes in estimated fair value were due to declines in market conditions versus instrument specific credit risk. For the periods ended ~~June~~September 30, 2025, and December 31, 2024, there were no material adjustments to fair value for the Company’s assets and liabilities measured at fair value on a nonrecurring basis in accordance with GAAP.

During the second quarter of 2024, the Company entered into a restructuring support agreement and received equity securities for equity interest in a private company, a Level 3 measurement. The fair value of the Company’s Level 3 equity security was measured using the private company’s projected earnings plus cash on hand. The primary inputs and assumptions used in the fair value measurement was derived from the issuer’s projected earnings and collateral, which included cash on hand, the financial standing of the issuer, the business and financial plan of the issuer, among other factors. Significant increases or decreases in any of the inputs or assumptions could result in a significant increase or decrease in the fair value measurement.

For financial assets measured at fair value on a nonrecurring basis that were still reflected in the Consolidated Balance Sheets as of ~~June~~September 30, 2025, and December 31, 2024, the following tables set forth the level of valuation assumptions used to determine each adjustment, the carrying value of the related individual assets as of ~~June~~September 30, 2025, and December 31, 2024, and the total losses for the periods indicated:

	As of June 30, 2025								Total Losses
	As of September 30, 2025								Total Losses
	Fair Value Measurements Using						Total Fair Value		For the Three Months Ended				For the ~~Six~~Nine Months Ended
	Level 1		Level 2		Level 3		Measurements		~~June~~September 30, 2025		~~June~~September 30, 2024		~~June~~September 30, 2025		~~June~~September 30, 2024
	(In thousands)
	($ In thousands)
Assets
Non-accrual loans by type:
Commercial loans	$	—	$	—	$	165,~~577~~741	$	165,~~577~~741	$	—9,028	$	1,~~038~~923	$	89,~~652~~115	$	12,~~038~~961
Commercial real estate loans		—		—		2832,~~803~~095		2832,~~803~~095		—314		~~251~~1,746		34,~~839~~153		~~251~~1,997
Residential mortgage loans and equity lines		—		—		~~235~~222		~~235~~222		—		—59		—		—59
Total non-accrual loans		—		—		4538,~~615~~058		4538,~~615~~058		—9,342		13,~~289~~728		1213,~~491~~268		15,~~289~~017
Other real estate owned (1)		—		—		1934,~~896~~746		1934,~~896~~746		—		—		—		—
Other equity securities		—		—		1,539		1,539		—		—		—		—
Investments in venture capital		—		—		84		84		—		—		—		—
Total assets	$	—	$	—	$	6774,~~134~~427	$	6774,~~134~~427	$	—9,342	$	13,~~289~~728	$	1213,~~491~~268	$	15,~~289~~017
(1) Other real estate owned balance of $19.0 million in the Consolidated Balance Sheets is net of estimated disposal costs.
(1) Other real estate owned balance of $33.0 million in the Consolidated Balance Sheets is net of estimated disposal costs.

	As of December 31, 2024								Total Losses
	Fair Value Measurements Using						Total Fair Value		For the Twelve Months Ended
	Level 1		Level 2		Level 3		Measurements		December 31, 2024		December 31, 2023
	(In thousands)
	($ In thousands)
Assets
Non-accrual loans by type:
Commercial loans	$	—	$	—	$	10,896	$	10,896	$	5,654	$	—
Commercial real estate loans		—		—		15,320		15,320		4,049		4,069
Commercial real estate loans		—		—		243		243		59		—
Residential mortgage loans and equity lines		—		—		243		243		59		—
Total non-accrual loans		—		—		26,459		26,459		9,762		4,069
Other real estate owned (1)		—		—		24,126		24,126		—		—
Other equity securities		—		—		1,539		1,539		—		—
Investments in venture capital		—		—		86		86		147		227
Total assets	$	—	$	—	$	52,210	$	52,210	$	9,909	$	4,296
(1) Other real estate owned balance of $23.1 million in the Consolidated Balance Sheets is net of estimated disposal costs.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent individually evaluated loans are primarily based on the appraised value of collateral adjusted by estimated sales cost and commissions. The Company generally obtains new appraisal reports every twelve months as appropriate. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. In the current year, the Company used borrower specific collateral discounts with various discount levels.

The fair value of individually evaluated loans is calculated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent individually evaluated loans are recorded based on the current appraised value of the collateral, ~~a Level 2 measurement, or~~ management’s judgment and estimation of value using discounted future cash flows or old appraisals which are then adjusted based on recent market trends, a Level 3 measurement.

Loans held for sale are recorded at the lower of cost or fair value upon transfer. Loans held for sale may be measured at fair value on a nonrecurring basis when fair value is less than cost. Fair value is generally determined based on available market data for similar loans and therefore, are classified as Level 2 measurement.

The significant unobservable inputs (Level 3) used in the fair value measurement of other real estate owned (“OREO”) are primarily based on the appraised value of OREO adjusted by estimated sales cost and commissions. The Company applies estimated sales cost and commissions ~~ranging~~of ~~from 3~~5% ~~to 6%~~ of the collateral value of individually evaluated loans, quoted price, or loan sale price of loans held for sale, and appraised value of OREO.

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Fair value is estimated in accordance with ASC Topic 825. Fair value estimates are made at specific points in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

The following table sets forth the carrying and notional amounts and estimated fair value of financial instruments as of ~~June~~September 30, 2025, and December 31, 2024:

	June 30, 2025				December 31, 2024
	September 30, 2025				December 31, 2024
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
	($ In thousands)
Financial Assets
Cash and due from banks	$	~~190~~166,~~011~~167	$	~~190~~166,~~011~~167	$	157,167	$	157,167
Short-term investments		1,~~056~~141,~~964~~886		1,~~056~~141,~~964~~886		882,353		882,353
Securities AFS		1,~~648~~643,~~433~~450		1,~~648~~643,~~433~~450		1,547,128		1,547,128
Loans held-for-sale		13,338		13,338		—		—
Loans held for investment, net		19,903,082		20,447,466		19,203,649		19,500,647
Loans held for investment, net		19,597,337		20,072,336		19,203,649		19,500,647
Equity securities		32,111		32,111		34,429		34,429
Equity securities		28,849		28,849		34,429		34,429
Investment in Federal Home Loan Bank stock		17,250		17,250		17,250		17,250

	Notional				Notional
	Amount		Fair Value		Amount		Fair Value
Foreign exchange contracts	$	~~197~~114,~~362~~395	$	~~1,522~~321	$	62,794	$	490
Interest rate swaps		1,~~081~~064,~~046~~539		3129,~~571~~162		1,065,580		39,958

	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Financial Liabilities
Deposits	$	20,~~006~~521,~~330~~149	$	1920,~~983~~506,~~108~~029	$	19,686,199	$	19,670,327
Advances from Federal Home Loan Bank		~~412~~190,000		~~410~~189,~~444~~312		60,000		59,606
Other borrowings		17,~~652~~628		15,~~656~~338		17,740		15,281
Long-term debt		119,136		7678,~~785~~627		119,136		73,752

	Notional				Notional
	Amount		Fair Value		Amount		Fair Value
Foreign exchange contracts	$	37122,~~944~~381	$	~~247~~185	$	171,945	$	785
Interest rate swaps		1,~~492~~542,~~313~~988		3431,~~108~~815		1,198,471		36,319

	Notional					Notional
	Amount		Fair Value			Amount		Fair Value
Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	3,~~564~~670,~~709~~598	$	(1918,~~138~~620	)	$	3,470,296	$	(18,226	)
Standby letters of credit		~~466~~510,~~558~~886		(23,~~763~~225	)		439,769		(2,900	)
Other letters of credit		116,~~327~~452		(137	)		12,347		(14	)

The following tables set forth the level in the fair value hierarchy for the estimated fair values of financial instruments as of ~~June~~September 30, 2025, and December 31, 2024, excluding financial instruments recorded at fair value on a recurring basis already presented in other tables in this note:

	As of June 30, 2025
	As of September 30, 2025
	Fair Value		Level 1		Level 2		Level 3
	(In thousands)
	($ In thousands)
Financial Assets
Cash and due from banks	$	~~190~~166,~~011~~167	$	~~190~~166,~~011~~167	$	—	$	—
Short-term investments		1,~~056~~141,~~964~~886		1,~~056~~141,~~964~~886		—		—
Loans held-for-sale		13,338		—		13,338		—
Loans held for investment, net		20,447,466		—		—		20,447,466
Loans held for investment, net		20,072,336		—		—		20,072,336
Equity securities		1,539		—		—		1,539
Investment in Federal Home Loan Bank stock		17,250		—		17,250		—
Financial Liabilities
Deposits		1920,~~983~~506,~~108~~029		—		—		1920,~~983~~506,~~108~~029
Advances from Federal Home Loan Bank		~~410~~189,~~444~~312		—		~~410~~189,~~444~~312		—
Other borrowings		15,~~656~~338		—		—		15,~~656~~338
Long-term debt		7678,~~785~~627		—		7678,~~785~~627		—

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	As of December 31, 2024
	Fair Value		Level 1		Level 2		Level 3
	(In thousands)
	($ In thousands)
Financial Assets
Cash and due from banks	$	157,167	$	157,167	$	—	$	—
Short-term investments		882,353		882,353		—		—
Loans held for investment, net		19,500,647		—		—		19,500,647
Equity securities		1,539		—		—		1,539
Investment in Federal Home Loan Bank stock		17,250		—		17,250		—
Financial Liabilities
Deposits		19,670,327		—		—		19,670,327
Advances from Federal Home Loan Bank		59,606		—		59,606		—
Other borrowings		15,281		—		—		15,281
Long-term debt		73,752		—		73,752		—

13. Goodwill and Other Intangible Assets

Goodwill. Total goodwill was $375.7 million as of ~~June~~September 30, 2025, and remains unchanged compared with December 31, 2024. The Company completed its annual goodwill impairment testing and concluded that goodwill was not impaired as of December 31, 2024.

Core Deposit Intangibles.

The following table presents the gross carrying amount and accumulated amortization of core deposits intangible assets as of ~~June~~September 30, 2025, and December 31, 2024:

	June 30, 2025			December 31, 2024
	September 30, 2025			December 31, 2024
	(In thousands)
	($ In thousands)
Gross balance	$	109,~~562~~260		$	10,562
Accumulated amortization		(65,~~792~~719	)		(6,292	)
Impairment		(1,324	)		(1,324	)
Net carrying balance	$	2,~~446~~217		$	2,946

There were no impairment write-downs included in amortization of core deposit intangibles for the three months ended ~~June~~September 30, 2025 , and September ~~$9 thousand in impairment write-downs for the three months ended June~~ 30, 2024. There was no impairment write-downs included in amortization of core deposit intangibles for the ~~six~~nine months ended ~~June~~September 30, 2025 , and $97 thousand in impairment write-downs for the ~~six~~ nine months ended ~~June~~September 30, 2024.

The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets was $~~250~~229 thousand and $~~259~~250 thousand for the three months ended ~~June~~September 30, 2025, and 2024, respectively. The amortization expense related to the core deposit intangible assets was $~~500~~729 thousand and $~~598~~848 thousand for the ~~six~~nine months ended ~~June~~September 30, 2025, and 2024, respectively.

The following table presents the estimated aggregate amortization expense of core deposit intangibles for each of the remaining years:

	Amount
	(In thousands)
	($ In thousands)
2025	$	~~446~~653
2026		870
2027		~~870~~694
2028		260
Total	$	2,217
Total	$	2,446

14. Financial Derivatives

The Company does not speculate on the future direction of interest rates. As part of the Company’s asset and liability management, however, the Company enters into financial derivatives to seek to mitigate exposure to interest rate risks related to its interest-earning assets and interest-bearing liabilities. The Company believes that these transactions, when properly structured and managed, may provide a hedge against inherent interest rate risk in our assets or liabilities and against risk in specific transactions. In such instances, the Company may protect its position through the purchase or sale of interest rate future contracts for a specific cash or interest rate risk position. Other hedging transactions may be implemented using interest rate swaps, interest rate caps, floors, financial futures, forward rate agreements, and options on futures or bonds. Prior to considering any hedging activities, the Company seeks to analyze the costs and benefits of the hedge in comparison to other viable alternative strategies. All hedges will require an assessment of basis risk and must be approved by the Bancorp or the Bank’s Investment Committee.

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The Company follows ASC Topic 815 that establishes accounting and reporting standards for financial derivatives, including certain financial derivatives embedded in other contracts, and hedging activities. It requires the recognition of all financial derivatives as assets or liabilities in the Company’s Consolidated Balance Sheets and measurement of those financial derivatives at fair value. The accounting treatment of changes in fair value is dependent upon whether or not a financial derivative is designated as a hedge and, if so, the type of hedge. Fair value is determined using third-party models with observable market data. For derivatives designated as cash flow hedges, changes in fair value are recognized in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. For derivatives designated as fair value hedges, changes in the fair value of the derivatives are reflected in current earnings, together with changes in the fair value of the related hedged item if there is a highly effective correlation between changes in the fair value of the interest rate swaps and changes in the fair value of the underlying asset or liability that is intended to be hedged. If there is not a highly effective correlation between changes in the fair value of the interest rate swap and changes in the fair value of the underlying asset or liability that is intended to be hedged, then only the changes in the fair value of the interest rate swaps are reflected in the Company’s consolidated financial statements.

The Company offers various interest rate derivative contracts to its clients. When derivative transactions are executed with its clients, the derivative contracts are offset by paired trades with third-party financial institutions including with central counterparties (“CCP”). Certain derivative contracts entered with CCPs are settled-to-market daily to the extent the CCP’s rulebooks legally characterize the variation margin as settlement. Derivative contracts are intended to allow borrowers to lock in attractive intermediate and long-term fixed rate financing while not increasing the interest rate risk to the Company. These transactions are generally not linked to specific Company assets or liabilities on the Consolidated Balance Sheets or to forecasted transactions in a hedging relationship and, therefore, are economic hedges. The contracts are marked to market at each reporting period. The changes in fair values of the derivative contracts traded with third-party financial institutions are expected to be largely comparable to the changes in fair values of the derivative transactions executed with clients throughout the terms of these contracts, except for the credit valuation adjustment component. The Company records credit valuation adjustments on derivatives to properly reflect the variances of credit worthiness between the Company and the counterparties, considering the effects of enforceable master netting agreements and collateral arrangements. As of ~~June~~September 30, 2025, and December 31, 2024, the Company had outstanding interest rate derivative contracts with certain clients and third-party financial institutions with a notional amount of $~~959~~968.36 million and $680.5 million, respectively, with a fair value of $2826.3 million and $32.7 million, respectively, for both clients and third-party financial institutions. As of ~~June~~September 30, 2025, and December 31, 2024, for borrower swap transactions, there were no notional amount of interest rate swaps cleared through the CCP.

In May 2014, Bancorp entered into interest rate swap contracts in the notional amount of $119.1 million for a period of ten years. The objective of these interest rate swap contracts, which were designated as hedging instruments in cash flow hedges, was to hedge the quarterly interest payments on Bancorp’s $119.1 million of Junior Subordinated Debentures that had been issued to five trusts, throughout the ten-year period beginning in June 2014 and ending in June 2024, from the risk of variability of these payments resulting from changes in the three-month LIBOR interest rate. The Company early terminated these cash flow derivative swaps in 2022 and realized a gain of $4.0 million for the year ended December 31, 2022, and recognized the amount as a reduction of long-term debt interest expense over the remaining life of the swaps on a straight-line basis ending in June 2024.

As of ~~June~~September 30, 2025, the Bank’s outstanding fair value interest rate swap contracts matched to individual fixed-rate commercial real estate loans had a notional amount of $48.51 million with a fair value of $21.08 million and various terms from three to ten years. These contracts have been designated as hedging instruments to hedge the risk of changes in the fair value of the underlying commercial real estate loans due to changes in interest rates. The swap contracts are structured so that the notional amounts reduce over time to match the contractual amortization of the underlying loan and allow prepayments with the same pre-payment penalty amounts as the related loan. As of ~~June~~September 30, 2025 and 2024, the ineffective portion of these interest rate swaps was not significant.

The Company has designated as a partial-term hedging election of $~~578~~577.29 million notional with a net fair value loss of $4.54 million as last-of-layer hedge on pools of loans with a notational value of $~~902~~921.76 million as of ~~June~~September 30, 2025. The loans are not expected to be affected by prepayment, defaults, or other factors affecting the timing and amount of cash flows under the last-of-layer method. The Company has entered into these pay-fixed and receive 1-Month Term SOFR interest rate swaps to convert the last-of-layer $~~578~~577.29 million portion of $~~902~~921.76 million fixed rate loan pools in order to reduce the Company’s exposure to higher interest rates for the last-of-layer tranches. As of ~~June~~September 30, 2025, the last-of-layer loan tranche had a net fair value gain basis adjustment of $5.52 million. The interest rate swap converts this last-of-layer tranche into a floating rate instrument. The Company’s risk management objective with respect to this last-of-layer interest rate swap is to reduce interest rate exposure as to the last-of-layer tranche.

Interest rate swap contracts involve the risk of dealing with institutional derivative counterparties and their ability to meet contractual terms. Institutional counterparties must have a strong credit profile and be approved by the Company’s Board of Directors. The Company’s credit exposure on interest rate swaps is limited to the net favorable value and interest payments of all swaps by each counterparty. Credit exposure may be reduced by the amount of collateral pledged by the counterparty. Bancorp’s interest rate swaps had been assigned by the counterparties to a derivative clearing organization.

The notional amount and net unrealized loss of the Company’s fair value derivative financial instruments as of ~~June~~September 30, 2025, and December 31, 2024, were as follows:

	June 30, 2025			December 31, 2024
	September 30, 2025			December 31, 2024
	(In thousands)
	($ In thousands)
Fair value swap hedges:
Notional	$	~~626~~625,~~741~~987		$	875,117
Weighted average fixed rate-pay		34.9703	%		3.55	%
Weighted average variable rate spread		0.2019	%		0.22	%
Weighted average variable rate-receive		4.5351	%		5.36	%
Net (loss)/gain(1)	$	(2,~~538~~594	)	$	3,644

Three Months Ended

~~Six~~Nine Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Periodic net settlement of swaps (2)

~~834~~510

3,~~634~~646

2,~~334~~844

1014,~~475~~121

(1) the amount is included in other non-interest income.

(2) the amount of periodic net settlement of interest rate swaps was included in interest income.

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Included in the total notional amount of $626.70 million of the fair value interest rate contracts entered into with financial counterparties as of ~~June~~September 30, 2025, was a notional amount of $~~572~~571.06 million of interest rate swaps that cleared through the CCP. Applying variation margin payments as settlement to CCP cleared derivative transactions resulted in a reduction in derivative asset fair values of $3.97 million as of ~~June~~September 30, 2025.

The Company enters into foreign exchange forward contracts with various counterparties to mitigate the risk of fluctuations in foreign currency exchange rates for foreign exchange certificates of deposit or foreign exchange contracts entered into with our clients. These contracts are not designated as hedging instruments and are recorded at fair value in our Consolidated Balance Sheets. Changes in the fair value of these contracts as well as the related foreign exchange certificates of deposit and foreign exchange contracts are recognized immediately in net income as a component of non-interest income. Period end gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities.

The notional amount and fair value of the Company’s derivative financial instruments not designated as hedging instruments as of ~~June~~September 30, 2025, and December 31, 2024, not including interest rate swaps cleared through the CCP, were as follows:

Derivative financial instruments not designated as hedging instruments:	~~June~~September 30, 2025			December 31, 2024
	(In thousands)
	($ In thousands)
Notional amounts:
Forward, and swap contracts with positive fair value	$	1,~~156~~082,~~667~~947		$	743,257
Forward, and swap contracts with negative fair value	$	~~997~~1,~~250~~090,933		$	852,409
Fair value:
Forward, and swap contracts with positive fair value	$	2926,~~829~~626		$	33,237
Forward, and swap contracts with negative fair value	$	(2826,~~554~~490	)	$	(33,531	)

15. Balance Sheet Offsetting

Certain financial instruments, including resell and repurchase agreements, securities lending arrangements and derivatives, may be eligible for offset in the Consolidated Balance Sheets and/or subject to master netting arrangements or similar agreements. The Company’s securities sold with agreements to repurchase and derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association master agreements that include “right of set-off” provisions. In such cases, there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset such financial instruments for financial reporting purposes.

Financial instruments that are eligible for offset in the Consolidated Balance Sheets, as of ~~June~~September 30, 2025, and December 31, 2024, are set forth in the following table:

							Gross Amounts Not
							Offset in the Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts Presented in the Balance Sheet		Financial Instruments		Collateral Posted		Net Amount
	(In thousands)
	($ In thousands)
June 30, 2025
September 30, 2025
Assets:
Derivatives	$	3129,~~571~~162	$	149,~~380~~173	$	1719,~~191~~989	$	—	$	631,526	$	1718,~~128~~463
Liabilities:
Derivatives	$	3431,~~108~~815	$	—	$	3431,~~108~~815	$	—	$	—	$	3431,~~108~~815
December 31, 2024
Assets:
Derivatives	$	39,958	$	34,609	$	5,349	$	—	$	174	$	5,175
Liabilities:
Derivatives	$	36,319	$	—	$	36,319	$	—	$	—	$	36,319

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16. Revenue from Contracts with Clients

The following is a summary of revenue from contracts with clients that are in-scope and not in-scope under ASC Topic 606:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(In thousands)

($ In thousands)

Non-interest income, in-scope:

Fees and service charges on deposit accounts

2,~~609~~681

2,~~450~~245

57,~~045~~726

46,~~687~~933

Wealth management fees

46,~~936~~219

56,~~678~~545

1117,~~105~~324

1117,~~316~~861

Other service fees(1)

45,~~759~~648

45,~~737~~039

914,~~243~~890

813,~~787~~826

Total in-scope non-interest income

1214,~~304~~548

1213,~~865~~829

2539,~~393~~940

2438,~~790~~620

Non-interest loss, not in-scope(2)

36,~~087~~473

~~350~~6,536

17,~~202~~676

(41,~~964~~571

)

Total non-interest income

1521,~~391~~021

1320,~~215~~365

2647,~~595~~616

1940,~~826~~191

(1) Other service fees comprise of fees related to letters of credit, wire fees, fees on foreign exchange transactions and other immaterial individual revenue streams.

(2) These amounts primarily represent revenue from contracts with clients that are out of the scope of ASC Topic 606 and primarily represent revenue from interest rate swap fees, unrealized gains and losses on equity securities and other miscellaneous income.

The major revenue streams by fee type that are within the scope of ASC Topic 606 presented in the above table are described in additional detail below:

Fees and Services Charges on Deposit Accounts

Fees and service charges on deposit accounts include charges for analysis, overdraft, cash checking, ATM, and safe deposit activities executed by our deposit clients, as well as interchange income earned through card payment networks for the acceptance of card-based transactions. Fees earned from our deposit clients are governed by contracts that provide for overall custody and access to deposited funds and other related services and can be terminated at will by either party. Fees received from deposit clients for the various deposit activities are recognized as revenue by the Company once the performance obligations are met.

Wealth Management Fees

The Company employs financial consultants to provide investment planning services for clients including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The fees the Company earns are variable and are generally received monthly by the Company. The Company recognizes revenue for the services performed at quarter end based on actual transaction details received from the broker dealer the Company engages.

Practical Expedients and Exemptions

The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose the value of unsatisfied performance obligations as the Company’s contracts with clients generally have a term that is less than one year, are open-ended with a cancellation period that is less than one year or allow the Company to recognize revenue in the amount to which the Company has the right to invoice.

In addition, given the short-term nature of the contracts, the Company also applies the practical expedient in ASC 606-10-32-18 and does not adjust the consideration from clients for the effects of a significant financing component, if at contract inception the period between when the entity transfers the goods or services and when the client pays for that good or service is one year or less.

17. Stockholders’ Equity

Total equity was $2.8990 billion as of ~~June~~September 30, 2025, an increase of $4056.6 million, from $2.85 billion as of December 31, 2024, primarily due to net income of $~~147~~224.06 million, other comprehensive income of $1625.49 million, stock-based compensation of $24.7 million, proceeds from dividend reinvestment of $12.30 million, and stock issued to directors of $1.0 million, offset by purchase of treasury stock of $77127.39 million, common stock cash dividends of $4770.79 million, and shares withheld related to net share settlement of RSUs of $2.8 million.

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Activity in accumulated other comprehensive income/(loss), net of tax, and reclassification out of accumulated other comprehensive income/(loss) for the three and ~~six~~nine months ended ~~June~~September 30, 2025, and ~~June~~September 30, 2024, was as follows:

Three Months Ended June 30, 2025

Three Months Ended June 30, 2024

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

Pre-tax

Tax expense~~/ (benefit)~~

Net-of-tax

Pre-tax

Tax expense~~/ (benefit)~~

Net-of-tax

(In thousands)

($ In thousands)

Beginning balance, (loss)/gain, net of tax

Beginning balance, loss, net of tax

Securities AFS

(7169,~~747~~222

)

(9293,~~612~~060

)

Cash flow hedge derivatives

—

~~333~~—

Total

(7169,~~747~~222

)

(9293,~~279~~060

)

Net unrealized gains/(losses) arising during the period

Net unrealized gains arising during the period

Securities AFS

313,~~585~~521

13,~~060~~997

29,~~525~~524

~~(636~~37,773

)

~~(188~~11,166

)

~~(448~~26,607

)

Cash flow hedge derivatives

—

~~(473~~—

)

~~(140~~—

)

~~(333~~—

)

Total

313,~~585~~521

13,~~060~~997

29,~~525~~524

(137,~~109~~773

)

~~(328~~11,166

)

~~(781~~26,607

)

Reclassification adjustment for net losses in net income

Securities AFS

—

Cash flow hedge derivatives

—

Total

—

Total other comprehensive income/(loss)

Total other comprehensive income

Securities AFS

313,~~585~~521

13,~~060~~997

29,~~525~~524

~~(636~~37,773

)

~~(188~~11,166

)

~~(448~~26,607

)

Cash flow hedge derivatives

—

~~(473~~—

)

~~(140~~—

)

~~(333~~—

)

Total

313,~~585~~521

13,~~060~~997

29,~~525~~524

(137,~~109~~773

)

~~(328~~11,166

)

~~(781~~26,607

)

Ending balance, (loss)/gain, net of tax

Ending balance, loss, net of tax

Securities AFS

(6959,~~222~~698

)

(9366,~~060~~453

)

Cash flow hedge derivatives

—

Total

(6959,~~222~~698

)

(9366,~~060~~453

)

	Six Months Ended June 30, 2025							Six Months Ended June 30, 2024
	Nine Months Ended September 30, 2025							Nine Months Ended September 30, 2024
	Pre-tax		Tax expense~~/ (benefit)~~		Net-of-tax			Pre-tax			Tax expense/ (benefit)			Net-of-tax
	(In thousands)
	($ In thousands)
Beginning balance, gain/(loss), net of tax
Beginning balance, (loss)/gain, net of tax
Securities AFS					$	(85,607	)							$	(86,190	)
Cash flow hedge derivatives						—									774
Total					$	(85,607	)							$	(85,416	)
Net unrealized gains/(losses) arising during the period
Securities AFS	$	2336,~~261~~782	$	610,~~876~~873	$	1625,~~385~~909		$	(928,~~753~~020	)	$	(28,~~883~~283	)	$	(619,~~870~~737	)
Cash flow hedge derivatives		—		—		—			(1,099	)		(325	)		(774	)
Total	$	2336,~~261~~782	$	610,~~876~~873	$	1625,~~385~~909		$	~~(10~~26,~~852~~921	)	$	(37,~~208~~958	)	$	(718,~~644~~963	)
Reclassification adjustment for net losses in net income
Securities AFS	$	—	$	—	$	—		$	—		$	—		$	—
Cash flow hedge derivatives		—		—		—			—			—			—
Total		—		—		—			—			—			—
Total other comprehensive income/(loss)
Securities AFS	$	2336,~~261~~782	$	610,~~876~~873	$	1625,~~385~~909		$	(928,~~753~~020	)	$	(28,~~883~~283	)	$	(619,~~870~~737	)
Cash flow hedge derivatives		—		—		—			(1,099	)		(325	)		(774	)
Total	$	2336,~~261~~782	$	610,~~876~~873	$	1625,~~385~~909		$	~~(10~~26,~~852~~921	)	$	(37,~~208~~958	)	$	(718,~~644~~963	)
Ending balance, gain/(loss), net of tax
Ending balance, loss, net of tax
Securities AFS					$	(6959,~~222~~698	)							$	(9366,~~060~~453	)
Cash flow hedge derivatives						—									—
Total					$	(6959,~~222~~698	)							$	(9366,~~060~~453	)

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18. Stock Repurchase Program

On June 4, 2025, the Company announced a new stock repurchase program to buy back up to $150.0 million of the Company's common stock. The previous $125.0 million shares repurchase program announced on May 28, 2024, was completed on February 28, 2025, with the repurchase of a total of 2,905,487 shares at an average cost of $43.02.

During the ~~second~~ third quarter, we repurchased ~~804~~1,~~179~~070,000 common shares at an average cost of $4446.2281 per share, for a total of $3550.61 million.

19. Subsequent Events

The Company has evaluated the effect of events that have occurred subsequent to ~~June~~September 30, 2025, through the date of issuance of the Consolidated Financial Statements, and, based on such evaluation, the Company believes that there have been no material events during such period that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion is based on the assumption that the reader has access to and has read the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Critical Accounting Policies

The discussion and analysis of the Company’s financial condition and results of operations are based upon its unaudited Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues, and expenses, and related disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies involve significant judgments, assumptions and uncertainties and are essential to understanding the Company’s results of operations and financial condition. Management of the Company considers the following to be critical accounting policies:

Accounting for the allowance for loan losses involves significant judgments and assumptions by management, which have a material impact on, among other things, the carrying value of net loans. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances as described in “Allowance for Credit Losses” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in the 2024 Form 10-K. For more information, please also see Note 2 to the Company’s unaudited Consolidated Financial Statements.

Other Legislative Updates

In June 2025, California enacted Senate Bill No. 132 (“SB 132”), requiring banks and financial institutions to adopt a single sales factor for income apportionment, effective for tax years beginning on or after January 1, 2025. Prior to SB 132, financial institutions had been required to use an equally weighted three-factor apportionment formula, which considered property, payroll and sales equally in apportioning income for California tax purposes.

In July 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the “GENIUS Act,” was signed into law, establishing a federal licensing and supervisory framework for payment stablecoins and their issuers. The GENIUS Act may accelerate and increase the competition that non-traditional financial institutions pose to banks’ payment services, but may also create opportunities for banks to hold stablecoin reserve assets, custody stablecoins, or issue stablecoins. Several key provisions of the GENIUS Act require federal regulatory agencies to adopt implementing regulations, and the Act will take effect the earlier of 18 months after its enactment or 120 days after the agencies issue final implementing regulations.

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~~Accounting~~In ~~for~~July 2025, the ~~allowance~~One ~~for~~Big ~~loan~~Beautiful ~~losses~~Bill ~~involves~~Act (“OBBBA”) was signed into law, introducing significant ~~judgments~~tax ~~and~~changes. ~~assumptions~~The byOBBBA ~~management,~~extends ~~which~~or ~~have~~makes apermanent ~~material~~various ~~impact~~tax ~~on,~~provisions ~~among~~that ~~other~~were ~~things,~~originally enacted in the ~~carrying~~2017 ~~value~~Tax Cuts and Jobs Act and were set to expire at the end of ~~net~~this ~~loans~~year. The ~~judgments~~OBBBA ~~and~~features ~~assumptions~~modified ~~used~~versions byof ~~management~~individual ~~are~~and ~~based~~business ontax ~~historical~~relief ~~experience~~proposals, and other ~~factors,~~new ~~which~~tax ~~are~~relief ~~believed~~measures. toIn beaddition, ~~reasonable~~it ~~under~~includes ~~the~~various ~~circumstances~~revenue-raising asmeasures, ~~described~~including inchanges ~~“Allowance~~to ~~for~~certain ~~Credit~~Inflation ~~Losses”~~Reduction ~~under~~Act ~~“Management’s~~clean ~~Discussion~~energy tax credits and ~~Analysis~~various oflimits ~~Financial~~on ~~Condition~~business and ~~Results~~individual oftax ~~Operations—Critical~~deductions, ~~Accounting~~that ~~Policies”~~are inintended to offset part of the ~~2024~~ ~~Form~~cost ~~10-K~~of the legislation. ~~For~~The ~~more~~Company ~~information,~~is ~~please~~currently ~~also~~evaluating ~~see~~the ~~Note~~impact ~~2 to~~of the ~~Company’s~~OBBBA ~~unaudited~~on ~~Consolidated~~its ~~Financial~~business ~~Statements~~and consolidated financial statements.

Highlights

● Net interest margin increased to 3.2731% during the ~~second~~third quarter from 3.0104% in the ~~second~~third quarter of 2024.

	●	Total loans, excluding loans held for sale, increased to $19.78 billion or 2.11%, from $19.38 billion at December 31, 2024.
	●	Total deposits increased $320.1 million or 1.6%, to $20.01 billion from December 31, 2024.

	●	Total loans, excluding loans held for sale, increased to $20.10 billion or 3.8%, from $19.38 billion at December 31, 2024.
	●	Total deposits increased $835.0 million or 4.2%, to $20.52 billion from December 31, 2024.
	●	Provision for credit losses of $28.7 million for the third quarter of 2025, included an additional reserve of $9.1 million for two movie theatre loans and $3.8 million from a change in the CECL model.

Quarterly Statement of Operations Review

Net Income

Net income for the quarter ended ~~June~~September 30, 2025, was $77.57 million, an increase of $10.72 million, or 1615.01%, compared to net income of $6667.85 million for the same quarter a year ago. Diluted earnings per share for the quarter ended ~~June~~September 30, 2025, was $1.1013 per share compared to $0.9294 per share for the same quarter a year ago.

Return on average stockholders’ equity was 10.7260% and return on average assets was 1.3329% for the quarter ended ~~June~~September 30, 2025, compared to a return on average stockholders’ equity of 9.6350% and a return on average assets of 1.15% for the same quarter a year ago.

Financial Performance

	Three months ended						~~Six~~Nine months ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
	(In millions, except per share and ratio data)
	($ In millions, except per share and ratio data)
Net income	$	77.57		$	6667.85		$	~~147~~224.06		$	~~138~~205.38
Basic earnings per common share	$	1.1113		$	0.9294		$	23.0922		$	12.9084
Diluted earnings per common share	$	1.1013		$	0.9294		$	23.0921		$	12.9083
Return on average assets		1.3329	%		1.15	%		1.2728	%		1.1918	%
Return on average total stockholders' equity		10.7260	%		9.6350	%		10.2839	%		109.0184	%
Efficiency ratio		4541.3484	%		5551.6511	%		4544.4618	%		5453.4528	%

Net Interest Income Before Provision for Credit Losses

Net interest income before provision for credit losses increased $1520.94 million, or 912.61%, to $~~181~~189.26 million during the ~~second~~third quarter of 2025, compared to $~~165~~169.32 million during the same quarter a year ago. The increase was due primarily to a decrease in interest expense from deposits, offset by a small decrease in interest income from loans and securities.

The net interest margin was 3.2731% for the ~~second~~third quarter of 2025 compared to 3.0104% for the ~~second~~third quarter of 2024.

For the ~~second~~third quarter of 2025, the yield on average interest-earning assets was 5.8384%, the cost of funds on average interest-bearing liabilities was 3.3732%, and the average cost of interest-bearing deposits was 3.3528%. In comparison, for the ~~second~~third quarter of 2024, the yield on average interest-earning assets was 6.0510%, the cost of funds on average interest-bearing liabilities was 3.9799%, and the average cost of interest-bearing deposits was 3.9495%. The decrease in the yield on average interest-bearing liabilities and on average interest-earning assets resulted mainly from lower interest rates on deposits and lower interest rates on loans and securities, respectively. The net interest spread, defined as the difference between the yield on average interest-earning assets and the cost of funds on average interest-bearing liabilities, was 2.4652% for the quarter ended ~~June~~September 30, 2025, compared to 2.0811% for the same quarter a year ago.

Table of Contents

The following table sets forth information concerning average interest-earning assets, average interest-bearing liabilities, and the average yields and rates paid on those assets and liabilities for the three months ended ~~June~~September 30, 2025, and 2024. The average outstanding amounts included in the table are daily averages.

Interest-Earning Assets and Interest-Bearing Liabilities

Three Months Ended June 30,

Three Months Ended September 30,

2025

2024

Interest

Average

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate (1)(2)

Balance

Expense

Rate (1)(2)

(In thousands)

($ In thousands)

Interest-earning assets:

Total loans (1)

19,~~489~~951,~~400~~853

~~296~~308,~~857~~945

6.1114

19,~~439~~455,~~112~~521

~~303~~310,~~336~~311

6.2835

Investment securities

1,~~622~~634,~~309~~248

1312,~~666~~690

3.3808

1,~~667~~638,~~279~~414

15,~~644~~125

3.7767

Federal Home Loan Bank stock

17,250

~~373~~376

8.65

17,250

~~499~~375

118.6365

Deposits with banks

1,~~102~~113,~~579~~274

12,~~022~~184

4.3734

~~997~~1,~~808~~035,534

13,~~381~~680

5.3926

Total interest-earning assets

22,~~231~~716,~~538~~625

~~322~~334,~~918~~195

5.8384

22,~~121~~146,~~449~~719

~~332~~339,~~860~~491

6.0510

Non-interest earning assets:

Cash and due from banks

~~159~~163,~~751~~891

~~161~~159,~~182~~324

Other non-earning assets

1,~~144~~150,~~713~~545

1,~~217~~211,~~198~~110

Total non-interest earning assets

1,~~304~~314,~~464~~436

1,~~378~~370,~~380~~434

Less: Allowance for loan losses

(~~173~~172,~~530~~958

)

(~~151~~153,~~889~~122

)

Deferred loan fees

(1214,~~536~~723

)

(11,~~486~~006

)

Total assets

23,~~349~~843,~~936~~380

23,~~336~~353,~~454~~025

Interest-bearing liabilities:

Interest-bearing demand accounts

2,~~133~~189,~~874~~376

9,~~090~~369

1.7170

2,~~169~~134,~~045~~807

11,~~153~~286

2.0710

Money market accounts

3,~~464~~556,~~685~~374

2930,~~679~~792

3.44

3,~~217~~073,~~813~~384

3028,~~190~~991

3.7775

Savings accounts

1,~~343~~419,~~043~~953

56,~~601~~139

1.6772

1,~~037~~212,~~771~~870

35,~~169~~641

1.2385

Time deposits

9,~~692~~698,~~056~~744

9493,~~364~~087

3.9181

10,~~185~~250,~~497~~601

~~118~~119,~~076~~786

4.6665

Total interest-bearing deposits

16,~~633~~864,~~658~~447

~~138~~139,~~734~~387

3.3528

16,~~610~~671,~~126~~662

~~162~~165,~~588~~704

3.9495

Other borrowings

~~103~~295,~~059~~892

~~934~~3,178

34.6326

~~235~~186,~~234~~838

32,~~093~~281

54.2986

Long-term debt

119,136

2,~~029~~043

6.8380

119,136

12,~~863~~351

67.2985

Total interest-bearing liabilities

1617,~~855~~279,~~853~~475

~~141~~144,~~697~~608

3.3732

16,~~964~~977,~~496~~636

~~167~~170,~~544~~336

3.9799

Non-interest bearing liabilities:

Demand deposits

3,~~331~~384,~~433~~141

3,~~247~~230,~~498~~150

Other liabilities

~~263~~272,~~682~~168

~~331~~316,~~903~~860

Total equity

2,~~898~~907,~~968~~596

2,~~792~~828,~~557~~379

Total liabilities and equity

23,~~349~~843,~~936~~380

23,~~336~~353,~~454~~025

Net interest spread

2.4652

2.0811

Net interest income

~~181~~189,~~221~~587

~~165~~169,~~316~~155

Net interest margin

3.2731

3.0104

(1) Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance.

(2) Calculated by dividing net interest income by average outstanding interest-earning assets.

Table of Contents

The following table summarizes the changes in interest income and interest expense attributable to changes in volume and changes in interest rates for the three months ended ~~June~~September 30, 2025 and 2024:

Taxable-Equivalent Net Interest Income — Changes Due to Volume and Rate(1)

Three Months Ended June 30,

Three Months Ended September 30,

2025-2024

Increase/(Decrease) in

Net Interest Income Due to

Changes in Volume

Changes in Rate

Total Change

(In thousands)

($ In thousands)

Interest-earning assets:

Loans

~~863~~8,133

(79,~~342~~499

)

(61,~~479~~366

)

Investment securities

(~~405~~38

)

(12,~~573~~397

)

(12,~~978~~435

)

Federal Home Loan Bank stock

—

~~(126~~1

)

~~(126~~1

)

Deposits with other banks

~~1,332~~975

(2,~~691~~471

)

(1,~~359~~496

)

Total changes in interest income

19,~~790~~070

(1114,~~732~~366

)

(95,~~942~~296

)

Interest-bearing liabilities:

Interest-bearing demand accounts

~~(176~~282

)

(12,~~888~~201

)

(21,~~064~~919

)

Money market accounts

24,~~272~~343

(2,~~782~~541

)

~~(510~~1,802

)

Savings accounts

~~1,090~~923

~~1,342~~(424

)

~~2,432~~499

Time deposits

(56,~~448~~123

)

(1820,~~264~~576

)

(2326,~~712~~699

)

Other borrowed funds

(1,~~387~~201

)

(~~772~~304

)

~~(2,159~~897

)

Long-term debt

—

~~166~~(308

)

~~166~~(308

)

Total changes in interest expense

~~(3,649~~626

)

(2226,~~198~~354

)

(25,~~847~~728

)

Changes in net interest income

58,~~439~~444

1011,~~466~~988

1520,~~905~~432

(1) Changes in interest income and interest expense attributable to changes in both volume and rate have been allocated proportionately to changes due to volume and changes due to rate.

Provision for credit losses

The Company recorded a provision for credit losses of $1128.27 million in the ~~second~~third quarter of 2025 compared with $614.65 million in the ~~second~~third quarter of 2024. Provision for credit losses of $28.7 million for the third quarter of 2025 included an additional reserve of $9.1 million for two movie theatre loans and $3.8 million from a change in the CECL model. As of ~~June~~September 30, 2025, the allowance for credit losses, comprised of the reserve for loan losses and the reserve for unfunded loan commitments, increased $1225.01 million to $~~183~~196.45 million, or 0.9398% of gross loans, compared to $171.4 million, or 0.88% of gross loans, as of December 31, 2024. The change in the allowance for credit losses during the ~~six~~ nine months ended ~~June~~September 30, 2025, consisted of a $2655.74 million provision for credit losses, and $1430.74 million in net charge-offs.

The following table sets forth the charge-offs and recoveries for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands)
	($ In thousands)
Charge-offs:
Commercial loans	$	916,~~117~~173	$	82,~~257~~666	$	1127,~~461~~634	$	1012,~~196~~862
Real estate loans (1)		~~3,913~~314		—1,805		34,~~913~~227		~~254~~2,059
Total charge-offs		13,030		8,257		15,374		10,450
Installment and other loans		—		7		—		7
Total charge-offs		16,487		4,478		31,861		14,928
Recoveries:
Commercial loans		~~196~~547		~~126~~88		~~465~~1,012		~~938~~1,026
Construction loans		—5		—187		16		—561
Real estate loans (1)		93289		~~134~~1		~~190~~479		~~375~~1
Total recoveries		~~289~~841		~~260~~276		~~656~~1,497		1,~~313~~588
Net charge-offs	$	1215,~~741~~646	$	74,~~997~~202	$	1430,~~718~~364	$	913,~~137~~340
(1) Real estate loans include commercial real estate loans, residential mortgage loans, and equity lines.

Non-Interest Income

Non-interest income, which includes revenues from depository service fees, letters of credit commissions, securities gains (losses), wealth management fees, and other sources of fee income, was $1521.40 million for the ~~second~~third quarter of 2025, an increase of $20.26 million, or 162.79%, compared to $1320.24 million for the ~~second~~third quarter of 2024. The increase was primarily due to an increase of $20.4 5 million in ~~derivative~~other ~~fees~~ operating income related to a legal settlement when compared to the same quarter a year ago.

Table of Contents

Non-Interest Expense

Non-interest expense decreased $108.38 million, or 109.41%, to $8988.1 million in the ~~second~~third quarter of 2025 compared to $9996.49 million in the same quarter a year ago. The decrease in non-interest expense in the ~~second~~third quarter of 2025 was primarily due to a decrease of $1211.29 million in amortization expense of investments in low-income housing and alternative energy partnerships, offset by an increase of $2.76 million in salaries and employee benefits and an increase of $1.0 million in computer and equipment expense when compared to the same quarter a year ago. The efficiency ratio was 4541.3484% in the ~~second~~third quarter of 2025 compared to 5551.6511% for the same quarter a year ago.

Income Taxes

The effective tax rate for the ~~second~~third quarter of 2025 was 1917.62% compared to 713.96% for the ~~second~~third quarter of 2024. The effective tax rate includes the impact of low-income housing tax credits in 2025 and solar tax credits and low-income housing tax credits in 2024.

As a result of the enactment of the single sales factor apportionment by the State of California in June 2025, the Company recorded a $3.4 million write down of its deferred tax assets during the ~~second~~nine ~~quarter~~months ofended September 30, 2025.

Year-to-Date Statement of Operations Review

Net Income

Net income for the ~~six~~ nine months ended ~~June~~September 30, 2025, was $~~147~~224.06 million, an increase of $818.78 million, or 69.31%, compared to net income of $~~138~~205.38 million for the same period a year ago. Diluted earnings per share for the ~~six~~ nine months ended ~~June~~September 30, 2025, was $23.0921 per share compared to $12.9083 per share for the same period a year ago.

Return on average stockholders’ equity was 10.2839% and return on average assets was 1.2728% for the ~~six~~ nine months ended ~~June~~September 30, 2025, compared to a return on average stockholders’ equity of 109.0184% and a return on average assets of 1.1918% for the same period a year ago.

Table of Contents

The following table sets forth information concerning average interest-earning assets, average interest-bearing liabilities, and the average yields and rates paid on those assets and liabilities for the ~~six~~nine months ended ~~June~~September 30, 2025, and 2024. The average outstanding amounts included in the table are daily averages.

Interest-Earning Assets and Interest-Bearing Liabilities

Six Months Ended June 30,

Nine Months Ended September 30,

2025

2024

Interest

Average

Interest

Average

Income/

Yield/

Average

Income/

Yield/

Balance

Expense

Rate (1)(2)

Balance

Expense

Rate (1)(2)

(In thousands)

($ In thousands)

Interest-earning assets:

Total loans (1)

19,~~411~~593,~~434~~553

~~590~~899,~~841~~786

6.14

19,~~469~~464,~~033~~496

~~605~~916,~~864~~175

6.2629

Investment securities

1,~~540~~572,~~471~~074

2538,~~769~~459

3.3727

1,~~652~~647,~~798~~968

3045,~~595~~720

3.7271

Federal Home Loan Bank stock

17,250

~~752~~1,128

8.7974

2019,~~128~~162

~~930~~1,305

9.2910

Interest-bearing deposits

1,~~152~~139,~~166~~060

2437,~~951~~135

4.3736

1,~~045~~042,~~890~~413

2841,~~113~~793

5.4136

Total interest-earning assets

22,~~121,~~321,937

~~642~~976,~~313~~508

5.8685

22,~~187~~174,~~849~~039

~~665~~1,~~502~~004,993

6.0305

Non-interest earning assets:

Cash and due from banks

~~168~~166,~~368~~859

~~172~~168,~~426~~027

Other non-earning assets

1,~~159~~156,~~231~~304

1,~~199~~203,~~070~~113

Total non-interest earning assets

1,~~327~~323,~~599~~163

1,371,~~496~~140

Less: Allowance for loan losses

(~~167~~169,~~688~~464

)

(153,~~562~~414

)

Deferred loan fees

(1112,~~878~~837

)

(11,~~606~~405

)

Total assets

23,~~269~~462,~~354~~799

23,~~394~~380,~~177~~360

Interest-bearing liabilities:

Interest-bearing demand accounts

2,~~138~~155,~~034~~336

1727,~~953~~321

1.69

2,~~240~~205,~~645~~108

2335,~~725~~012

2.1312

Money market accounts

3,~~423~~468,~~716~~421

5889,~~270~~062

3.43

3,~~166~~134,~~055~~940

5786,~~556~~546

3.6669

Savings accounts

1,~~316~~351,~~483~~352

1016,~~581~~721

1.6265

1,~~041~~099,~~938~~331

611,~~019~~660

1.1642

Time deposits

9,~~637~~658,~~742~~300

~~190~~283,~~430~~517

3.9892

910,~~953~~053,~~207~~062

~~227~~347,~~622~~408

4.6062

Total interest-bearing deposits

16,~~515~~633,~~975~~409

~~277~~416,~~234~~621

3.3835

16,~~401~~492,~~845~~441

~~314~~480,~~922~~626

3.8689

Other borrowings

~~158~~204,~~731~~953

36,~~170~~348

4.0314

~~483~~383,~~007~~563

1315,~~108~~389

5.4636

Long-term debt

119,136

46,~~049~~092

6.8584

119,136

35,~~584~~935

6.0565

Total interest-bearing liabilities

16,~~793~~957,~~842~~498

~~284~~429,~~453~~061

3.4238

1716,~~003~~995,~~988~~140

~~331~~501,~~614~~950

3.9295

Non-interest bearing liabilities:

Demand deposits

3,~~318~~340,~~364~~530

3,~~293~~271,~~024~~913

Other liabilities

~~275~~274,~~215~~190

~~319~~318,~~965~~923

Total equity

2,~~881~~890,~~933~~581

2,~~777~~794,~~200~~384

Total liabilities and equity

23,~~269~~462,~~354~~799

23,~~394~~380,~~177~~360

Net interest spread

2.4447

2.1110

Net interest income

~~357~~547,~~860~~447

~~333~~503,~~888~~043

Net interest margin

3.2628

3.03

(1) Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance.

(2) Calculated by dividing net interest income by average outstanding interest-earning assets.

Table of Contents

The following table summarizes the changes in interest income and interest expense attributable to changes in volume and changes in interest rates for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024:

Taxable-Equivalent Net Interest Income — Changes Due to Volume and Rate(1)

Six Months Ended June 30,

Nine Months Ended September 30,

2025-2024

Increase/(Decrease) in

Net Interest Income Due to

Changes in Volume

Changes in Rate

Total Change

(In thousands)

($ In thousands)

Interest-earning assets:

Loans

(25,~~007~~879

)

(1322,~~016~~268

)

(1516,~~023~~389

)

Investment securities

(2,~~027~~046

)

(25,~~799~~215

)

(47,~~826~~261

)

Federal Home Loan Bank stock

(~~129~~127

)

(4950

)

(~~178~~177

)

Deposits with other banks

23,~~663~~633

(58,~~825~~291

)

(34,~~162~~658

)

Total changes in interest income

(17,~~500~~339

)

(2135,~~689~~824

)

(2328,~~189~~485

)

Interest-bearing liabilities:

Interest-bearing demand accounts

(~~1,055~~777

)

(46,~~717~~915

)

(57,~~772~~692

)

Money market accounts

48,~~450~~785

(36,~~736~~268

)

~~714~~2,517

Savings accounts

12,~~825~~923

2,~~737~~138

45,~~562~~061

Time deposits

(713,~~131~~272

)

(3050,~~061~~619

)

(3763,~~192~~891

)

Other borrowed funds

(76,~~148~~075

)

(2,~~790~~966

)

(9,~~938~~041

)

Long-term debt

—

~~465~~157

Total changes in interest expense

(98,~~059~~416

)

(3864,~~102~~473

)

(4772,~~161~~889

)

Changes in net interest income

715,~~559~~755

1628,~~413~~649

2344,~~972~~404

(1) Changes in interest income and interest expense attributable to changes in both volume and rate have been allocated proportionately to changes due to volume and changes due to rate.

Balance Sheet Review

Assets

Total assets were $2324.7207 billion as of ~~June~~September 30, 2025, an increase of $~~669~~1.202 ~~million~~billion, or 24.94%, from $23.05 billion as of December 31, 2024.

Securities Available-for-Sale

Debt securities available-for-sale are measured at fair value and subject to impairment testing. When an available-for-sale debt security is considered impaired, the Company must determine if the decline in fair value has resulted from a credit-related loss or other factors and then, (1) recognize an allowance for credit losses by a charge to earnings for the credit-related component (if any) of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value change. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security.

For available-for-sale (“AFS”) debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors.

In making this assessment, management considers the extent to which fair value is less than amortized cost, the payment structure of the security, failure of the issuer of the security to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. Any fair value changes that have not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Losses are charged against the allowance when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Changes in the allowance for credit losses are recorded as provision for credit loss expense.

Table of Contents

The amortized cost of the Company’s AFS debt securities exclude accrued interest, which is included in “accrued interest income” on the Consolidated Balance Sheets. The Company has made an accounting policy election not to measure an allowance for credit losses for accrued interest receivables on AFS debt securities since the Company timely reverses any previously accrued interest when the debt security remains in default for an extended period. As each AFS debt security has a unique security structure, where the accrual status is clearly determined when certain criteria listed in the terms are met, the Company assesses the default status of each security as defined by the debt security’s specific security structure. At ~~June~~September 30, 2025, no AFS debt securities were in default.

In the current period, management evaluated the securities in an unrealized loss position and determined that their unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined the unrealized losses were not credit-related and recognized the unrealized losses in "other comprehensive income/(loss)" in stockholders' equity. Although we periodically sell securities for portfolio management purposes, we do not foresee having to sell any impaired securities strictly for liquidity needs and believe that it is more likely than not we would not be required to sell any impaired securities before recovery of their amortized cost.

Securities available-for-sale represented 6.98% of total assets as of ~~June~~September 30, 2025, compared to 6.7% of total assets as of December 31, 2024. Securities available-for-sale were $1.6564 billion as of ~~June~~September 30, 2025, compared to $1.55 billion as of December 31, 2024.

Securities available-for-sale having a carrying value of $1719.75 million as of ~~June~~September 30, 2025, and $17.8 million as of December 31, 2024, were pledged to secure public deposits and other borrowings.

Loans

Gross loans held for investment were $1920.7810 billion at ~~June~~September 30, 2025, an increase of $~~408~~728.78 million, or 23.118%, from $19.38 billion at December 31, 2024. The increase was primarily due to an increase of $~~329~~451.31 million, or 34.35%, in commercial real estate loans, an increase of $96126.70 million, or 3 2.12%, in ~~commercial~~residential mortgage loans, ~~and~~ an increase of $3114.09 million, or 0 3.17% , in ~~residential~~commercial ~~mortgage~~ loans, and ~~offset,~~an inincrease ~~part, by a decrease~~ of $1836.56 million, or 511.84% in real estate construction loans.

The loan held for investment balances and composition at ~~June~~September 30, 2025, compared to December 31, 2024, are set forth below:

	June 30, 2025			% of Gross Loans			December 31, 2024			% of Gross Loans			% Change
	September 30, 2025			% of Gross Loans			December 31, 2024			% of Gross Loans			% Change
	(in thousands)
	($ In thousands)
Commercial loans	$	3,~~194~~212,~~724~~907			16.20	%	$	3,098,004			16.0	%		3.17	%
Construction loans		~~301~~356,~~125~~215			1.58			319,649			1.6			(511.84	)
Commercial real estate loans		10,~~363~~484,~~109~~939			52.41			10,033,830			51.8			34.35
Residential mortgage loans and equity lines		56,~~922~~047,~~143~~394			2930.91			5,919,092			30.6			02.12
Installment and other loans		3,~~601~~261			—			5,380			—			(3339.14	)
Gross loans held for investment	$	1920,~~784~~104,~~702~~716			100	%	$	19,375,955			100	%		23.18	%
Allowance for loan losses		(~~173~~186,~~531~~647	)					(161,765	)					715.34
Unamortized deferred loan fees		(1314,~~834~~987	)					(10,541	)					3142.2
Total loans held for investment, net	$	19,~~597~~903,~~337~~082					$	19,203,649						23.16	%

Non-performing Assets

Non-performing assets include loans past due 90 days or more and still accruing interest, non-accrual loans, and OREO. Our policy is to place loans on non-accrual status if interest and/or principal is past due 90 days or more, or in cases where management deems the full collection of principal and interest unlikely. After a loan is placed on non-accrual status, any previously accrued but unpaid interest is reversed and charged against current income and subsequent payments received are generally first applied towards the outstanding principal balance of the loan. Depending on the circumstances, management may elect to continue the accrual of interest on certain past due loans if partial payment is received and/or the loan is well collateralized and in the process of collection. The loan is generally returned to accrual status when the borrower has brought the past due principal and interest payments current and, in the opinion of management, the borrower has demonstrated the ability to make future payments of principal and interest as scheduled.

Management reviews the loan portfolio regularly to seek to identify problem loans. During the ordinary course of business, management may become aware of borrowers that may not be able to meet the contractual requirements of their loan agreements. Such loans generally are placed under closer supervision with consideration given to placing the loans on non-accrual status, the need for an additional allowance for loan losses, and (if appropriate) partial or full charge-off.

The ratio of non-performing assets to total assets was 0.8483% as of ~~June~~September 30, 2025, compared to 0.85% as of December 31, 2024. Total non-performing assets increased $3.2.4 million, or 1.62% to $~~199~~198.57 million at ~~June~~September 30, 2025, compared to $196.3 million at December 31, 2024, primarily due to an increase of $59.0 9 million, or 343.0%, in ~~non-accrual~~other ~~loans~~real ~~and~~estate owned, anoffset ~~increase~~by a decrease of $2.3.9 million, or 5797.83%, in accruing loans past due 90 days or more, ~~offset~~and by a decrease of $43.1 6 million, or 172.71%, in ~~other~~non-accrual ~~real estate owned~~loans.

As a percentage of gross loans, excluding loans held for sale, plus OREO, our non-performing assets were 0.99% and 1.01% as of September ~~June~~ 30, 2025, ~~compared to~~and ~~1.01% as of~~ December 31, 2024, respectively. The non-performing loan portfolio coverage ratio, defined as the allowance for credit losses to non-performing loans, increased to ~~101~~118.6056% as of ~~June~~September 30, 2025, from 98.98% as of December 31, 2024.

Table of Contents

The following table sets forth the changes in non-performing assets as of ~~June~~September 30, 2025, compared to December 31, 2024, and to ~~June~~September 30, 2024:

	June 30, 2025			December 31, 2024			% Change			June 30, 2024			% Change
	September 30, 2025			December 31, 2024			% Change			September 30, 2024			% Change
	(in thousands)
	($ In thousands)
Non-performing assets
Accruing loans past due 90 days or more	$	~~6,389~~110		$	4,050			58(97	)	$	36,~~443~~931			86(98	)
Non-accrual loans:
Construction loans		4,230			—			—			22,998			(82	)
Commercial real estate loans		103,158			83,128			24			87,577			18
Commercial real estate loans		93,754			83,128			13			60,085			56
Commercial loans		33,690			59,767			(44	)		52,074			(35	)
Commercial loans		54,536			59,767			(9	)		4,075			1,238
Residential mortgage loans		28,784			26,266			10			23,183			24
Residential mortgage loans		21,633			26,266			(18	)		20,112			8
Total non-accrual loans	$	165,632		$	169,161			(2	)	$	162,834			2
Total non-accrual loans	$	174,153		$	169,161			3		$	107,270			62
Total non-performing loans		165,742			173,211			(4	)		169,765			(2	)
Total non-performing loans		180,542			173,211			4			110,713			63
Other real estate owned		32,983			23,071			43			18,277			80
Other real estate owned		18,990			23,071			(18	)		18,277			4
Total non-performing assets	$	198,725		$	196,282			1		$	188,042			6
Total non-performing assets	$	199,532		$	196,282			2		$	128,990			55
Accruing loan modifications to borrowers experiencing financial difficulties	$	63,355		$	—					$	—
Accruing loan modifications to borrowers experiencing financial difficulties	$	10,485		$	—					$	—
Allowance for loan losses	$	186,647		$	161,765			15		$	163,733			14
Non-accrual loans held for sale	$	8,938		$	—			—		$	—			—
Allowance for unfunded loan commitments	$	9,860		$	9,677			2		$	9,542			3
Allowance for loan losses	$	173,531		$	161,765			7		$	153,404			13
Total gross loans outstanding, excluding loans held for sale, at period-end	$	20,104,716		$	19,375,955			4		$	19,373,593			4
Allowance for unfunded loan commitments	$	9,892		$	9,677			2		$	9,574			3
Allowance for loan losses to non-performing loans, at period-end		112.61	%		93.39	%					96.45	%
Total gross loans outstanding, excluding loans held for sale, at period-end	$	19,784,702		$	19,375,955			2		$	19,357,524			2
Allowance for credit losses to non-performing loans, at period-end		118.56	%		98.98	%					102.07	%
Allowance for loan losses to non-performing loans, at period-end		96.12	%		93.39	%					138.56	%
Allowance for loan losses to gross loans, excluding loans held for sale, at period-end		0.93	%		0.83	%					0.85	%
Allowance for credit losses to non-performing loans, at period-end		101.60	%		98.98	%					147.21	%
Allowance for loan losses to gross loans, excluding loans held for sale, at period-end		0.88	%		0.83	%					0.79	%

Non-accrual Loans

As of ~~June~~September 30, 2025, total non-accrual loans were $~~174~~165.26 million, ana ~~increase~~decrease of $53.06 million, or 32.01%, from $169.2 million at December 31, 2024, and an increase of $662.98 million, or 621.47%, from $~~107~~162.38 million at ~~June~~September 30, 2024. The allowance for the collateral-dependent loans is calculated based on the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals, sales contracts, or other available market price information, less cost to sell. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as non-performing. We continue to monitor the collateral coverage of these loans, based on recent appraisals, on a quarterly basis and adjust the allowance accordingly.

The following tables set forth the type of properties securing the non-accrual portfolio loans and the type of businesses the borrowers engaged in as of the dates indicated:

	June 30, 2025				December 31, 2024
	September 30, 2025				December 31, 2024
	Real				Real
	Estate (1)		Commercial		Estate (1)		Commercial
	(In thousands)
	($ In thousands)
Type of Collateral
Single/multi-family residence	$	5558,~~508~~200	$	31,~~835~~207	$	52,930	$	5,259
Commercial real estate		6473,~~109~~742		—3,524		56,464		576
Personal property (UCC)		—		5028,~~701~~959		—		53,932
Total	$	~~119~~131,~~617~~942	$	5433,~~536~~690	$	109,394	$	59,767
(1) Real estate includes commercial real estate loans, construction loans, residential mortgage loans, equity lines and installment & other loans.

	June 30, 2025				December 31, 2024
	September 30, 2025				December 31, 2024
	Real				Real
	Estate (1)		Commercial		Estate (1)		Commercial
	(In thousands)
	($ In thousands)
Type of Business
Real estate development	$	6573,~~083~~363	$	4,873	$	45,278	$	5,000
Wholesale/Retail		3129,~~886~~258		4427,~~815~~590		30,415		47,080
Food/Restaurant		—46		40		56		250
Import/Export		—		~~4,223~~867		—		6,795
Other		2229,~~648~~275		~~585~~320		33,645		642
Total	$	~~119~~131,~~617~~942	$	5433,~~536~~690	$	109,394	$	59,767
(1) Real estate includes commercial real estate loans, construction loans, residential mortgage loans, equity lines and installment & other loans.

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For non-accrual loans, the amounts previously charged-off represent 1513.80% of the contractual balances for non-accrual loans as of ~~June~~September 30, 2025, and 11.7% as of December 31, 2024. As of ~~June~~September 30, 2025, $~~119~~131.69 million, or 6879.7%, of the $~~174~~165.26 million of non-accrual loans were secured by real estate compared to $109.4 million, or 64.7%, of the $169.2 million of non-accrual loans that were secured by real estate as of December 31, 2024. The Bank generally seeks to obtain current appraisals, sales contracts, or other available market price information intended to provide updated factors in evaluating potential loss.

The allowance for loan losses to non-performing loans was 96112.1261% as of ~~June~~September 30, 2025, compared to 93.39% as of December 31, 2024. The increase was due primarily to a net increase in the allowance for loan losses.

Loan Interest Reserves

In accordance with customary banking practice, construction loans and land development loans generally are originated where interest on the loan is disbursed from pre-established interest reserves included in the total original loan commitment. Our construction loans and land development loans generally include optional renewal terms after the maturity of the initial loan term. New appraisals are obtained prior to extension or renewal of these loans in part to determine the appropriate interest reserve to be established for the new loan term. Loans with interest reserves are generally underwritten to the same criteria, including loan to value and, if applicable, pro forma debt service coverage ratios, as loans without interest reserves. Construction loans with interest reserves are monitored on a periodic basis to gauge progress towards completion. Interest reserves are frozen if it is determined that additional draws would result in a loan to value ratio that exceeds policy maximums based on collateral property type. Our policy limits in this regard are consistent with supervisory limits and range from 50% in the case of land to 85% in the case of one to four family residential construction projects.

As of ~~June~~September 30, 2025, construction loans of $~~247~~246.28 million were disbursed with pre-established interest reserves of $3237.56 million, compared to $227.9 million with pre-established interest reserves of $31.3 million at December 31, 2024. The balance for construction loans with interest reserves that have been extended was $43.2 million with pre-established interest reserves of $~~0.5~~512 thousand ~~million~~ at ~~June~~September 30, 2025, compared to $4.2 million with pre-established interest reserves of $53 thousand at December 31, 2024. Land loans of $69.12 million were disbursed with pre-established interest reserves of $1.0 million at ~~June~~September 30, 2025, compared to no land loans disbursements with pre-established interest reserves at December 31, 2024. There were no land loans with interest reserves which have been extended as of ~~June~~September 30, 2025, and December 31, 2024.

At ~~June~~September 30, 2025, and December 31, 2024, the Bank had ~~one~~no loan on non-accrual status with ~~$53 thousand in~~ available interest reserves. At ~~June~~There ~~30,~~were ~~2025, $4.2 million~~ no non-accrual residential construction loans ~~had been originated with pre-established interest reserves. At December 31~~, ~~2024, there were no~~ non-accrual non-residential construction loans, ~~residential construction loans, or~~and non-accrual land loans that were originated with pre-established interest reserves as of September 30, 2025, and December 31, 2024. While we typically expect loans with interest reserves to be repaid in full according to the original contractual terms, some loans may require one or more extensions beyond the original maturity before full repayment. Typically, these extensions are required due to construction delays, delays in the sale or lease of the property, or some combination of these two factors.

Loan Concentration

Most of the Company’s business activities are with clients located in the high-density Asian-populated areas of Southern and Northern California; New York City, New York; Dallas and Houston, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Rockville, Maryland; and Las Vegas, Nevada. The Company also has loan clients in Hong Kong. The Company has no specific industry concentration, and generally our loans are collateralized with real property or other pledged collateral of the borrowers. The Company generally expects loans to be paid off from the operating profits of the borrowers, refinancing by another lender, or through sale by the borrowers of the collateral.

The federal banking regulatory agencies issued final guidance on December 6, 2006, regarding risk management practices for financial institutions with high or increasing concentrations of commercial real estate (“CRE”) loans on their balance sheets. The regulatory guidance reiterates the need for sound internal risk management practices for those institutions that have experienced rapid growth in CRE lending, have notable exposure to specific types of CRE, or are approaching or exceeding the supervisory criteria used to evaluate the CRE concentration risk, but the guidance is not to be construed as a limit for CRE exposure. The supervisory criteria are: (1) total reported loans for construction, land development, and other land represent 100% of the institution’s total risk-based capital, and (2) both total CRE loans represent 300% or more of the institution’s total risk-based capital and the institution’s CRE loan portfolio has increased 50% or more within the last thirty-six months. The Bank’s loans for construction, land development, and other land represented ~~13% and~~ 15% of the Bank’s total risk-based capital as of ~~June~~September 30, 2025, and December 31, 2024~~, respectively~~. Total CRE loans represented ~~291~~290% of total risk-based capital as of ~~June~~September 30, 2025, and 289% as of December 31, 2024, which were within the Bank’s internal limit of 400%, of total capital.

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CRE and Construction Loans ("CREC")

The Company’s total CREC loan portfolio is diversified by property type with an average CREC loan size of $1.9 million as of ~~June~~September 30, 2025, and December 31, 2024. The following table summarizes the Company’s total CREC loans by property type as of ~~June~~September 30, 2025, and December 31, 2024:

	As of June 30, 2025					As of December 31, 2024
	As of September 30, 2025					As of December 31, 2024
(In thousands)	Amount		%			Amount		%
($ In thousands)	Amount		%			Amount		%
Property type:
Retail	$	2,~~508~~529,~~588~~194		2423	%	$	2,432,022		24	%
Multifamily		2,~~799~~812,~~179~~468		26	%		2,723,890		26	%
Office		1,~~480~~470,~~533~~359		14	%		1,449,049		14	%
Warehouse		1,~~294~~340,~~942~~593		1213	%		1,248,439		12	%
Industrial		~~636~~693,~~564~~616		6	%		635,907		6	%
Hospitality		~~367~~362,~~789~~794		3	%		292,463		3	%
Construction & Land		~~371~~425,~~106~~637		34	%		403,060		4	%
Other		1,~~205~~206,~~533~~492		1211	%		1,168,649		11	%
Total CREC loans	$	10,~~664~~841,~~234~~153		100	%	$	10,353,479		100	%

The weighted-average loan-to-value (“LTV”) ratio of the total CREC loan portfolio was 49% as of ~~June~~September 30, 2025, and December 31, 2024. Approximately 86% and 85% of total CREC loans had an LTV ratio of 60% or lower as of ~~June~~September 30, 2025, and December 31, 2024, respectively.

The following tables provide a summary of the Company’s CREC, multifamily residential, and construction and land loans by geography as of ~~June~~September 30, 2025, and December 31, 2024. The distribution of the total CREC loan portfolio reflects the Company’s geographical footprint, which is primarily concentrated in California:

	As of June 30, 2025
	As of September 30, 2025
(In thousands)	CRE		%			Multifamily Residential		%			Construction and Land		%			Total		%
($ In thousands)	CRE		%			Multifamily Residential		%			Construction and Land		%			Total		%
Geographic markets:
Southern California	$	2,~~598~~630,~~912~~409				$	~~976~~964,~~448~~456				$	~~222~~268,~~987~~462				$	3,~~798~~863,~~347~~327
Northern California		1992,~~015,210~~767					~~153~~150,~~995~~714					1815,~~596~~470					1,~~187~~158,~~801~~951
California		3,~~614~~623,~~122~~176		48	%		1,~~130~~115,~~443~~170		40	%		~~241~~283,~~583~~932		6567	%		45,~~986~~022,~~148~~278		4746	%
New York		2,~~331~~362,~~803~~885		31	%		1,~~253~~266,~~152~~524		45	%		~~102~~111,~~760~~932		2826	%		3,~~687~~741,~~715~~341		35	%
Texas		~~370~~420,~~499~~579		5	%		~~146~~162,~~338~~723		56	%		62,~~116~~600		21	%		~~522~~585,~~953~~902		5	%
Illinois		~~240~~242,~~804~~731		3	%		45,~~541~~690		21	%		~~497~~697		0	%		~~286~~289,~~842~~118		3	%
New Jersey		~~155~~156,~~791~~224		2	%		17,~~770~~671		1	%		—1,575		0	%		~~173~~175,~~561~~470		12	%
Nevada		~~204~~206,~~824~~991		3	%		31,~~137~~020		1	%		24,~~851~~042		1	%		~~238~~242,~~812~~053		2	%
Washington		83,~~977~~697		1	%		~~145~~144,~~259~~291		5	%		812,~~969~~529		23	%		~~238~~240,~~205~~517		2	%
Other markets		~~492~~506,~~129~~765		7	%		29,~~539~~379		1	%		8,330		2	%		~~529~~544,~~998~~474		5	%
Total CREC loans	$	7,~~493~~603,~~949~~048		100	%	$	2,~~799~~812,~~179~~468		100	%	$	~~371~~425,~~106~~637		100	%	$	10,~~664~~841,~~234~~153		100	%

	As of December 31, 2024
(In thousands)	CRE		%			Multifamily Residential		%			Construction and Land		%			Total		%
($ In thousands)	CRE		%			Multifamily Residential		%			Construction and Land		%			Total		%
Geographic markets:
Southern California	$	2,498,806				$	928,376				$	235,618				$	3,662,800
Northern California		1,057,781					162,218					27,648					1,247,647
California		3,556,587		49	%		1,090,594		40	%		263,266		65	%		4,910,447		47	%
New York		2,194,173		31	%		1,202,183		44	%		101,887		25	%		3,498,243		34	%
Texas		343,271		5	%		160,207		6	%		6,130		2	%		509,608		5	%
Illinois		242,066		3	%		46,294		2	%		242		0	%		288,602		3	%
New Jersey		153,599		2	%		17,535		1	%		—		0	%		171,134		2	%
Nevada		161,095		2	%		28,775		1	%		23,205		6	%		213,075		2	%
Washington		85,784		1	%		146,258		5	%		—		0	%		232,042		2	%
Other markets		489,954		7	%		32,044		1	%		8,330		2	%		530,328		5	%
Total CREC loans	$	7,226,529		100	%	$	2,723,890		100	%	$	403,060		100	%	$	10,353,479		100	%

There were 4746% and 47% of total CREC loans concentrated in California as of ~~June~~September 30, 2025, and December 31, 2024, respectively. Changes in California’s economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan losses.

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Commercial Real Estate Loans

The Company focuses on providing financing to experienced real estate investors and developers who have moderate levels of leverage, many of whom are long-time customers of the Bank. CRE loans totaled $7.4960 billion as of ~~June~~September 30, 2025, compared with $7.23 billion as of December 31, 2024, and accounted for 38% and 37% of total loans held-for-investment, not including loans held for sale, as of ~~June~~September 30, 2025, and December 31, 2024, respectively. Interest rates on CRE loans may be fixed or variable. As of ~~June~~September 30, 2025, 1720% and 4138% of our CRE portfolio were variable rate and hybrid loans in their fixed period, respectively. In comparison, as of December 31, 2024, 25% and 37% of our CRE portfolio were variable rate and hybrid loans in their fixed period, respectively. Loans are underwritten with conservative standards for cash flows, debt service coverage and LTV.

Owner-occupied properties comprised ~~23% and~~ 24% of the CRE loans as of both ~~June~~September 30, 2025, and December 31, 2024~~, respectively~~. The remainder were non-owner-occupied properties, where 50% or more of the debt service for the loan is typically provided by rental income from an unaffiliated third party.

Commercial-Multifamily Residential Loans

The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units. Multifamily residential loans totaled $2.8081 billion as of ~~June~~September 30, 2025, compared with $2.72 billion as of December 31, 2024, and accounted for 14% of total loans held-for investment, not including loans held for sale, as of ~~both~~ ~~June~~September 30, 2025 , and December 31, 2024. The Company offers a variety of first lien mortgages, including fixed and variable-rate loans. As of ~~June~~September 30, 2025, 2324% and 4038% of our multifamily residential loan portfolio were variable rate and hybrid loans in their fixed period, respectively. In comparison, as of December 31, 2024, 18% and 41% of our multifamily residential loan portfolio were variable rate and hybrid loans in their fixed period, respectively.

Commercial-Construction and Land Loans

Construction and land loans provide financing for diversified projects by real estate property type. Construction and land loans totaled $~~371~~425.16 million as of ~~June~~September 30, 2025, compared with $403.1 million as of December 31, 2024, and accounted for 2% of total loans held-for-investment, not including loans held for sale, as of ~~June~~September 30, 2025, and December 31, 2024. Construction loan exposure was made up of $~~301~~356.12 million in outstanding loans, plus $~~212~~242.16 million in unfunded commitments as of ~~June~~September 30, 2025, compared with $319.6 million in outstanding loans, plus $186.5 million in unfunded commitments as of December 31, 2024. Land loans totaled $7069.04 million as of ~~June~~September 30, 2025, compared with $83.4 million as of December 31, 2024.

Allowance for Credit Losses

The Bank maintains the allowance for credit losses at a level that the Bank’s management considers appropriate to cover the estimated and known risks in the loan portfolio and off-balance sheet unfunded credit commitments. Allowance for credit losses is comprised of the allowance for loan losses and for off-balance sheet unfunded credit commitments. With this risk management objective, the Bank’s management has an established monitoring system that is designed to identify individually evaluated and potential problem loans, and to permit periodic evaluation of impairment and the appropriate level of the allowance for credit losses in a timely manner.

In addition, the Company’s Board of Directors has established a written credit policy that includes a credit review and control system that it believes should be effective in ensuring that the Bank maintains an appropriate allowance for credit losses. The Board of Directors provides oversight for the allowance evaluation process, including quarterly evaluations, and determines whether the allowance is appropriate to absorb losses in the credit portfolio. The determination of the amount of the allowance for credit losses and the provision for credit losses are based on management’s current judgment about the credit quality of the loan portfolio and take into consideration known relevant internal and external factors that affect collectability when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. Additions or reductions to the allowance for credit losses are made by charges or credits to the provision for credit losses. While management utilizes its business judgment based on the information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors, many of which are beyond the Bank’s control, including but not limited to the performance of the Bank’s loan portfolio, the economy and market conditions, changes in interest rates, and the view of the regulatory authorities toward loan classifications. Identified credit exposures that are determined to be uncollectible are charged against the allowance for credit losses. Recoveries of previously charged off amounts, if any, are credited to the allowance for credit losses. A weakening of the economy or other factors that adversely affect asset quality could result in an increase in the number of delinquencies, bankruptcies, or defaults, and a higher level of non-performing assets, net charge-offs, and provision for credit losses.

The allowance for loan losses was $~~173~~186.56 million and the allowance for off-balance sheet unfunded credit commitments was $9.9 million at ~~June~~September 30, 2025, which represented the amount estimated by management to be appropriate to absorb expected credit losses inherent in the loan portfolio, including unfunded credit commitments. The allowance for credit losses, which is the sum of the allowances for loan losses and for off-balance sheet unfunded credit commitments, was $~~183~~196.45 million at ~~June~~September 30, 2025, compared to $171.4 million at December 31, 2024. The allowance for credit losses represented 0.9398% of period-end gross loans and ~~101~~118.6056% of non-performing loans at ~~June~~September 30, 2025. The comparable ratios were 0.88% of period-end gross loans and 98.98% of non-performing loans at December 31, 2024.

Critical Accounting Policies and Estimates

Our accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. We identify critical policies and estimates as those that require management to make particularly difficult, subjective, and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions. We have identified the policy and estimates related to the allowance for credit losses on loans as a critical accounting policy.

Our critical accounting policies and estimates are described in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2024 Form 10-K. For more information, please also see Note 2 to the Company’s unaudited Consolidated Financial Statements.

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Expected Credit Losses Estimate for Loans

The allowance for credit losses is the combination of the allowance for loan losses and the reserve for unfunded loan commitments. The allowance for loan losses is reported as a reduction of the amortized cost basis of loans, while the reserve for unfunded loan commitments is included within "Other liabilities" on the Consolidated Balance Sheets. The amortized cost basis of loans does not include interest receivable, which is included in "Other assets" on the Consolidated Balance Sheets. The "Provision for credit losses" on the Consolidated Statement of Operations and Comprehensive Income is a combination of the provision for loan losses and the provision for unfunded loan commitments.

Under the CECL methodology, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of prepayments and available information about the collectability of cash flows, including information about relevant historical experience, current conditions, and reasonable and supportable forecasts of future events and circumstances. Thus, the CECL methodology incorporates a broad range of information in developing credit loss estimates. For further information regarding the calculation of the allowance for credit losses on loans held for investment using the CECL methodology, see Note 8 to the unaudited Consolidated Financial Statements contained in "Item 1. Consolidated Financial Statements."

In calculating our allowance for credit losses in the ~~second~~third quarter of 2025, ~~increased~~changes ~~sensitivity~~ to the ~~macroeconomic~~qualitative ~~forecast~~reserves, ~~particularly~~as ~~unemployment,~~well ~~had~~as aan ~~significant~~increase ~~impact to the allowance for credit losses. However, the allowance for credit losses~~ in ~~the~~individually ~~second~~evaluated ~~quarter of 2025 also reflected the reversal of specific~~ reserves ~~for~~accounted ~~two loans as the result of charge-offs during the second quarter~~ for ~~a restructuring of one borrower and~~ the ~~other~~increased ~~as a result of pledging of additional collateral and the reversal of a reserve for potential losses from tariffs due to additional developments during the second quarter~~allowance. Our methodology and framework along with the 8-quarter reasonable and supportable forecast period and the 4-quarter reversion period have remained consistent since the implementation of CECL. Certain management assumptions are reassessed every quarter based on current expectations for credit losses, while other assumptions are assessed and updated on at least an annual basis.

The use of different economic forecasts, whether based on different scenarios, the use of multiple or single scenarios, or updated economic forecasts and scenarios, can change the outcome of the calculations. In addition to the economic forecasts, there are numerous components and assumptions that are integral to the overall estimation of allowance for credit losses.

The determination of the allowance for credit losses is complex and dependent on numerous models, assumptions, and judgments made by management. Management's current expectation for credit losses as quantified in the allowance for credit losses, considers the impact of assumptions and is reflective of historical credit experience, economic forecasts viewed to be reasonable and supportable, current loan composition, and relative credit risks known as of the balance sheet date.

Under the Company’s CECL methodology, nine portfolio segments with similar risk characteristics are evaluated for expected loss. Six portfolios are modeled using econometric models and three smaller portfolios are evaluated using a simplified loss-rate method that calculates lifetime expected credit losses for the respective pools (simplified approach). The six portfolios subject to econometric modeling include residential mortgages; commercial and industrial loans (“C&I”); construction loans; commercial real estate (“CRE”) for multifamily loans; CRE for owner-occupied loans; and other CRE loans. We estimate the probability of default during the reasonable and supportable forecast period using separate econometric regression models developed to correlate macroeconomic variables, (GDP, unemployment, CRE prices and residential mortgage prices) to historical credit performance for each of the six loan portfolios from the fourth quarter of 2007 through the fourth quarter of 2024. Loss given default rates are computed based on the ~~net~~ charge-offs recognized and then applied to the expected exposure at default of defaulted loans starting with the fourth quarter of 2007 through the ~~fourth~~ third quarter of ~~2024~~2025. The probability of default and the loss given default rates are applied to the expected amount at default at the loan level based on contractual scheduled payments and estimated prepayments. The amounts so calculated comprise the quantitative portion of the allowance for credit losses.

The Company’s CECL methodology utilizes an eight-quarter reasonable and supportable (“R&S”) forecast period, and a four-quarter reversion period. Management relies on multiple forecasts, blending them into a single loss estimate. Generally speaking, the blended scenario approach would include the Baseline, the Alternative Scenario 1 – Upside – 10th Percentile and the Alternative Scenario 3 – Downside – 90th Percentile forecasts. After the R&S period, the Company will revert straight-line for the four-quarter reversion period to the long-term loss rates for each of the six portfolios of loans. The contractual term excludes renewals and modifications but includes pre-approved extensions and prepayment assumptions where applicable.

Our allowance for credit losses is sensitive to a number of inputs, including macroeconomic forecast assumptions and credit rating migrations during the period. Our macroeconomic forecasts used in determining the ~~June~~September 30, 2025, allowance for credit losses consisted of three scenarios as provided by a reputable third-party economic forecaster. ~~After~~ This ~~increasing the~~quarter ~~weighting of~~ the ~~downside~~ scenario ~~in 2022 to reflect our expectations that a recession was more likely than not, we reduced the~~ weighting ofremains the ~~severe~~same ~~scenario~~as ~~slightly during~~ the ~~third quarter~~macroeconomic offorecasts ~~2023,~~continue ~~in light of the continued strength of the economy. At the end of 2024, with the economy continuing~~ to ~~expand~~project atmarginally astrong ~~solid~~growth ~~pace, the downside scenario weighting was once again reduced~~ while ~~giving~~still ~~greater~~capturing ~~weight~~several toof the ~~baseline~~challenges ~~scenario.~~facing ~~This quarter~~ the ~~weighting remains the same as the macroeconomic forecasts continue to capture more of the economic uncertainty~~economy. The baseline scenario reflects modest ongoing GDP growth in spite of a slight rise in the unemployment rate, starting from 4.34% in the ~~third~~fourth quarter of 2025, peaking at 4.8% in the fourth quarter of 2026, and decreasing back down to 4.7% by the end of the R&S period. The upside scenario assumes the impacts of tariffs and deportations on the economy are less than expected and reflects higher GDP growth and lower unemployment rates with the stronger economy resulting in inflation and interest rates a bit higher than in the baseline scenario. The downside scenario assumes the impacts of tariffs, deportations and ~~deportations~~political tensions on the economy are ~~significantly~~ worse than expected and contemplates a recession as rising inflation prompts the Federal Reserve to raise the fed funds rate induring the ~~third and~~ fourth quarter of 2025. This results in negative GDP growth for three quarters peaking at 4.0% in the ~~first~~second quarter of 2026, rising unemployment that peaks at 8.34% in the ~~third~~fourth quarter of 2026, a decline in CRE prices of 20.54% and a decline in residential home prices of 1110.14% during the forecast period.

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Keeping all other factors constant, we estimate that if we had applied 100% weighting to the downside scenario, the allowance for credit losses as of ~~June~~September 30, 2025, would have been approximately $~~111~~106.92 million higher. This estimate is intended to reflect the sensitivity of the allowance for credit losses to changes in our scenario weights and is not intended to be indicative of future changes in the allowance for credit losses.

Management believes the allowance for credit losses is appropriate for the current expected credit losses in our loan portfolio and associated unfunded commitments, and the credit risk ratings and inherent loss rates currently assigned are reasonable and appropriate as of the reporting date. It is possible that others, given the same information, may at any point in time reach different conclusions that could result in a significant impact to the Company's financial statements.

The following table sets forth information relating to the allowance for loan losses, charge-offs, recoveries, and the reserve for off-balance sheet credit commitments for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
	(In thousands)
	($ In thousands)
Allowance for loan losses
Balance at beginning of period	$	173,~~936~~531		$	~~154~~153,~~589~~403		$	161,765		$	154,562
Provision for expected credit losses on loans		1228,~~336~~762			614,~~812~~532			2655,~~484~~246			722,~~979~~511
Charge-offs:
Commercial loans		(916,~~117~~173	)		(82,~~257~~666	)		(1127,~~461~~634	)		(1012,~~196~~862	)
Real estate loans (1)		(~~3,913~~314	)		—(1,805	)		(34,~~913~~227	)		(~~254~~2,059	)
Total charge-offs		(13,030	)		(8,257	)		(15,374	)		(10,450	)
Installment and other loans		—			(7	)		—			(7	)
Total charge-offs		(16,487	)		(4,478	)		(31,861	)		(14,928	)
Recoveries:
Commercial loans		~~196~~547			~~126~~88			~~465~~1,012			~~938~~1,026
Real estate loans (1)		93			134			191			375
Construction loans		5			—			6			—
Total recoveries		289			260			656			1,313
Real estate loans (1)		289			187			479			561
Balance at the end of period	$	173,531		$	153,404		$	173,531		$	153,404
Installment and other loans		—			1			—			1
Total recoveries		841			276			1,497			1,588
Balance at the end of period	$	186,647		$	163,733		$	186,647		$	163,733
Reserve for off-balance sheet credit commitments
Balance at beginning of period	$	119,~~028~~892		$	9,~~786~~574		$	9,676		$	9,053
Provision for expected credit losses on unfunded credit commitments		(1,136	)		(212	)		216		$	521
(Reversal)/provision for expected credit losses on unfunded credit commitments		(31	)		(32	)		185		$	489
Balance at the end of period	$	9,~~892~~861		$	9,~~574~~542		$	9,~~892~~861		$	9,~~574~~542
Average loans outstanding during the period	$	19,~~489~~951,~~400~~853		$	19,~~439~~455,~~112~~521		$	19,~~411~~593,~~434~~553		$	19,~~469~~464,~~033~~496
Total gross loans outstanding, excluding loans held for sale, at period-end	$	1920,~~784~~104,~~702~~716		$	19,~~357~~373,~~524~~593		$	1920,~~784~~104,~~702~~716		$	19,~~357~~373,~~524~~593
Total non-performing loans, at period-end	$	~~180~~165,~~542~~742		$	~~110~~169,~~713~~765		$	~~180~~165,~~542~~742		$	~~110~~169,~~713~~765
Ratio of net charge-offs to average loans outstanding during the period(2)		0.2631	%		0.1709	%		0.1521	%		0.09	%
Provision for expected credit losses to average loans outstanding during the period(2)		0.2357	%		0.1430	%		0.2838	%		0.0916	%
Allowance for credit losses to non-performing loans, at period-end		~~101~~118.6056	%		~~147~~102.2107	%		~~101~~118.6056	%		~~147~~102.2107	%
Allowance for credit losses to gross loans, excluding loans held for sale, at period-end		0.9398	%		0.8489	%		0.9398	%		0.8489	%
(1) Real estate loans include commercial real estate loans, residential mortgage loans, and equity lines.
(2) Annualized.

The table set forth below reflects management’s allocation of the allowance for loan losses by loan category and the ratio of each loan category to the average gross loans as of the dates indicated:

	June 30, 2025					December 31, 2024
	September 30, 2025					December 31, 2024
			Percentage of					Percentage of
			Loans in Each					Loans in Each
			Category					Category
			to Average					to Average
	Amount		Gross Loans			Amount		Gross Loans
	(In thousands)
	($ In thousands)
Type of Loan:
Commercial loans	$	4039,~~842~~071		16.14	%	$	57,796		16.2	%
Construction loans		56,~~434~~405		1.6			8,185		1.8
Commercial real estate loans		~~106~~117,~~773~~798		52.32			79,597		51.0
Residential mortgage loans and equity lines		2023,~~465~~361		3029.08			16,181		31.0
Installment and other loans		1712		0.0			6		0.0
Total loans	$	~~173~~186,~~531~~647		100	%	$	161,765		100	%

The allowance allocated to commercial loans decreased $1718.07 million, or 2932.4%, to $4039.81 million at ~~June~~September 30, 2025, from $57.8 million at December 31, 2024. The decrease was mainly due to acharge-offs ~~decrease~~of in$27.6 million ~~specific~~which ~~reserves~~were partially offset by provisions of $7.9 million.

The allowance allocated to construction loans decreased $21.8 million, or 3422.10% to $56.4 million at ~~June~~September 30, 2025, from $8.2 million at December 31, 2024. ~~The decrease was mainly due to a decrease in construction loans.~~

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The allowance allocated to commercial real estate loans increased $2738.2 million, or 3448.20%, to $~~106~~117.8 million at ~~June~~September 30, 2025, from $79.6 million at December 31, 2024. The increase is due primarily to an increase in commercial real estate loans and non-performing loans and a special $9.1 million reserve for two movie theatre loans acquired through our acquisition of Far East National Bank.

The allowance allocated for residential mortgage loans and equity lines increased $47.32 million, or 2644.54% to $2023.54 million at ~~June~~September 30, 2025, compared to $16.2 million at December 31, 2024. The increase was due primarily to an increase in residential real estate loans and use of a longer duration for residential mortgage loans for the allowance calculation at September 30, 2025.

Deposits

Total deposits were $20.0152 billion as of ~~June~~September 30, 2025, an increase of $~~320~~835.10 million, or 14.62% from $19.69 billion as of December 31, 2024.

The Company calculates its uninsured deposits based on the methodologies and assumptions used for regulatory reporting. Total uninsured deposits were $9.4896 billion as of ~~June~~September 30, 2025, increasing approximately $46525.15 million, from $9.43 billion as of December 31, 2024. Excluding $~~824~~856.04 million in collateralized deposits, the uninsured and uncollateralized deposits of $89.6610 billion was 4344.34% of total deposits as of ~~June~~September 30, 2025. Our unused borrowing capacity from the Federal Home Loan Bank as of ~~June~~September 30, 2025, was $7.0050 billion and unpledged securities at ~~June~~September 30, 2025, was $1.6362 billion. These sources of available liquidity, including cash and short-term investments, were more than 100% of uninsured and uncollateralized deposits as of ~~June~~September 30, 2025.

The following table sets forth the deposit mix as of the dates indicated:

	June 30, 2025					December 31, 2024
	September 30, 2025					December 31, 2024
	Amount		Percentage			Amount		Percentage
	(In thousands)
	($ In thousands)
Deposits
Non-interest-bearing demand deposits	$	3,~~381~~574,~~407~~567		1617.94	%	$	3,284,342		16.7	%
NOW deposits		2,~~174~~226,~~108~~182		10.89			2,205,695		11.2
Money market deposits		3,~~431~~586,~~060~~301		17.25			3,372,773		17.1
Savings deposits		1,~~317~~424,~~104~~243		6.69			1,252,788		6.4
Time deposits		9,~~702~~709,~~651~~856		4847.53			9,570,601		48.6
Total deposits	$	20,~~006~~521,~~330~~149		100.0	%	$	19,686,199		100.0	%

The following table sets forth the maturity distribution of time deposits as of ~~June~~September 30, 2025:

As of June 30, 2025

As of September 30, 2025

Time Deposits -under $250,000

Time Deposits -$250,000 and over

Total Time Deposits

(In thousands)

($ In thousands)

Three months or less

1,~~913~~095,~~854~~739

2,~~240~~350,~~265~~156

43,~~154~~445,~~119~~895

Over three to six months

1,~~022~~862,~~515~~440

2,~~130~~010,~~162~~971

3,~~152~~873,~~677~~411

Over six to twelve months

1943,~~012,779~~035

1,~~355~~424,~~274~~795

2,~~368~~367,~~053~~830

Over twelve months

1314,~~616~~418

148,~~186~~302

2722,~~802~~720

Total

3,~~962~~915,~~764~~632

5,~~739~~794,~~887~~224

9,~~702~~709,~~651~~856

Percent of total deposits

19.81

28.72

4847.53

FDIC Special Assessment and Uninsured Deposits

In November 2023, the FDIC approved a final rule that would impose a special deposit insurance assessment on banks in order to recover losses that the FDIC's Deposit Insurance Fund ("DIF") has incurred in the receiverships of failed institutions. Under the final rule, the FDIC would impose the special assessment for eight quarterly assessment periods beginning with the first quarter of 2024 assessment period, subject to adjustment if the total amount collected is insufficient to cover the DIF's cost. As of December 31, 2024, the total loss estimate to the DIF was $22.0 billion of which $19.1 billion is attributable to the protection of uninsured depositors and will be recovered through the special assessment. The quarterly special assessment will be collected at a quarterly rate of 3.36 basis points (0.0336%) of a bank's estimated uninsured deposits that exceeded $5 billion as of December 31, 2022. Given the update to the loss estimates and the increase in the aggregate special assessment base resulting from amendments to the reported amount of estimated uninsured deposits, the FDIC currently projects that the special assessment will be collected for an additional two quarters beyond the initial eight-quarter collection period, at a lower rate. Based on updated information received from the FDIC about the estimated losses for the failed institutions, the Company has recognized $1312.39 million cumulatively related to the special assessment as of ~~June~~September 30, 2025. Depending on future adjustments to the DIF's estimated loss, the FDIC has retained the ability to cease collection early, extend the special assessment collection period, or impose a one-time final shortfall assessment.

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Off-Balance-Sheet Arrangements and Contractual Obligations

The following table summarizes the Company’s contractual obligations to make future payments as of ~~June~~September 30, 2025. Payments for deposits and borrowings do not include interest. Payments related to leases are based on actual payments specified in the underlying contracts:

Payment Due by Period

More than

3 years or

1 year but

more but

1 year

less than

5 years

or less

3 years

5 years

or more

Total

(In thousands)

($ In thousands)

Contractual obligations:

Deposits with stated maturity dates

9,~~674~~687,~~849~~136

2722,~~738~~641

6466

—13

9,~~702~~709,~~651~~856

Advances from the Federal Home Loan Bank

~~412~~190,000

—

~~412~~190,000

Other borrowings

—

17,~~652~~628

Long-term debt

—

119,136

Operating leases

10,~~894~~721

16,~~297~~007

7,~~869~~219

2,~~546~~246

3736,~~606~~193

Total contractual obligations and other commitments

109,~~097~~887,~~743~~857

4438,~~035~~648

7,~~933~~285

139,~~334~~023

10,~~289~~072,~~045~~813

In the normal course of business, we enter into various transactions, which, in accordance with GAAP, are not included in our Consolidated Balance Sheets. We enter into these transactions to meet the financing needs of our clients. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets.

Loan Commitments - We enter into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of our commitments to extend credit are contingent upon clients maintaining specific credit standards at the time of loan funding. We minimize our exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses.

Standby Letters of Credit - Standby letters of credit are written conditional commitments issued by us to secure the obligations of a client to a third party. In the event the client does not perform in accordance with the terms of an agreement with the third party, we would be required to fund the commitment. The maximum potential amount of future payments we could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, we would be entitled to seek reimbursement from the client. Our policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements.

Capital Resources

Total equity was $2.8990 billion as of ~~June~~September 30, 2025, an increase of $4056.6 million, from $2.85 billion as of December 31, 2024, primarily due to net income of $~~147~~224.06 million, other comprehensive income of $1625.49 million, stock-based compensation of $24.7 million, proceeds from dividend reinvestment of $12.30 million, and stock issued to directors of $1.0 million, offset by, purchase of treasury stock of $77127.39 million, common stock cash dividends of $4770.79 million, and shares withheld related to net share settlement of RSUs of $2.8 million.

The following table summarizes changes in total equity for the ~~six~~nine months ended ~~June~~September 30, 2025:

	Six Months Ended
	Nine Months Ended
	June 30, 2025
	September 30, 2025
	(In thousands)
	($ In thousands)
Net income	$	~~146~~224,~~956~~607
Proceeds from shares issued through the Dividend Reinvestment Plan		1,~~336~~970
Shares withheld related to net share settlement of RSUs		(2,~~755~~758	)
Purchase of treasury stock		(77127,~~338~~923	)
Stocks issued to directors		1,020
Stock-based compensation		24,~~687~~690
Cash dividends paid to common stockholders		(4770,~~701~~944	)
Restricted stock units vested		1
Other comprehensive income		1625,~~385~~909
Net increase in total equity	$	4056,~~591~~572

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Capital Adequacy Review

Management seeks to retain our capital at a level sufficient to support future growth, protect depositors and stockholders, and comply with various regulatory requirements.

The following tables set forth actual and required capital ratios as of ~~June~~September 30, 2025, and December 31, 2024, for Bancorp and the Bank under the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. See the 2024 Form 10-K for a more detailed discussion of the Basel III Capital Rules.

Actual

Minimum Capital Required - Basel III

Required to be Considered Well Capitalized

Capital Amount

Ratio

Capital Amount

Ratio

Capital Amount

Ratio

(In thousands)

($ In thousands)

June 30, 2025

September 30, 2025

Common Equity Tier 1 to Risk-Weighted Assets

Cathay General Bancorp

2,~~552~~564,~~326~~145

13.3517

1,~~337~~362,~~832~~406

7.00

1,~~242~~265,~~273~~091

6.50

Cathay Bank

2,~~635~~650,~~066~~169

13.7962

1,~~337~~361,~~164~~613

7.00

1,~~241~~264,~~652~~355

6.50

Tier 1 Capital to Risk-Weighted Assets

Cathay General Bancorp

2,~~552~~564,~~326~~145

13.3517

1,~~624~~654,~~511~~350

8.50

1,~~528~~557,~~951~~035

8.00

Cathay Bank

2,~~635~~650,~~066~~169

13.7962

1,~~623~~653,~~699~~387

8.50

1,~~528~~556,~~187~~129

8.00

Total Capital to Risk-Weighted Assets

Cathay General Bancorp

2,~~851~~876,~~249~~153

14.9278

2,~~006~~043,~~748~~608

10.50

1,~~911~~946,~~189~~294

10.00

Cathay Bank

2,~~818~~846,~~489~~677

14.7563

2,~~005~~042,~~745~~419

10.50

1,~~910~~945,~~234~~161

10.00

Leverage Ratio

Cathay General Bancorp

2,~~552~~564,~~326~~145

1110.0990

~~920~~940,~~806~~584

4.00

1,~~151~~175,~~008~~730

5.00

Cathay Bank

2,~~635~~650,~~066~~169

11.4528

~~920~~939,~~241~~957

4.00

1,~~150~~174,~~302~~946

5.00

	Actual				Minimum Capital Required - Basel III				Required to be Considered Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(In thousands)
	($ In thousands)
December 31, 2024
Common Equity Tier 1 to Risk-Weighted Assets
Cathay General Bancorp	$	2,521,240		13.54	$	1,303,177		7.00	$	1,210,093		6.50
Cathay Bank		2,574,047		13.84		1,302,198		7.00		1,209,184		6.50
Tier 1 Capital to Risk-Weighted Assets
Cathay General Bancorp		2,521,240		13.54		1,582,429		8.50		1,489,345		8.00
Cathay Bank		2,574,047		13.84		1,581,240		8.50		1,488,226		8.00
Total Capital to Risk-Weighted Assets
Cathay General Bancorp		2,808,181		15.08		1,954,765		10.50		1,861,681		10.00
Cathay Bank		2,745,488		14.76		1,953,297		10.50		1,860,283		10.00
Leverage Ratio
Cathay General Bancorp		2,521,240		10.96		920,018		4.00		1,150,023		5.00
Cathay Bank		2,574,047		11.20		919,148		4.00		1,148,935		5.00

As of ~~June~~September 30, 2025, capital levels at Bancorp and the Bank exceed all capital adequacy requirements under the fully phased-in Basel III Capital Rules. Based on the ratios presented above, capital levels as of ~~June~~September 30, 2025, at Bancorp and the Bank exceed the minimum levels necessary to be considered “well capitalized.”

Dividend Policy

Holders of common stock are entitled to dividends as and when declared by our Board of Directors out of funds legally available for the payment of dividends. Although we have historically paid cash dividends on our common stock, we are not required to do so. We increased the common stock dividend from $0.24 per share in the fourth quarter of 2017, to $0.31 per share in the fourth quarter of 2018, to $0.34 per share in the fourth quarter of 2021. The amount of future dividends, if any, will depend on our earnings, financial condition, capital requirements and other factors, and will be determined by our Board of Directors. The terms of our Junior Subordinated Notes also limit our ability to pay dividends. If we are not current in our payment of dividends on our Junior Subordinated Notes, we may not pay dividends on our common stock.

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The Company declared a cash dividend of $0.34 per share on 7068,~~133~~363,~~321~~418 shares outstanding on ~~May 29~~August 15, 2025, for distribution to holders of our common stock on ~~June~~September 98, 2025. The Company paid total cash dividends of $23.82 million in the ~~second~~third quarter of 2025.

Liquidity

Liquidity is our ability to maintain sufficient cash flow to meet maturing financial obligations and client credit needs, and to take advantage of investment opportunities as they are presented in the marketplace. Our principal sources of liquidity are growth in deposits, proceeds from the maturity or sale of securities and other financial instruments, repayments from securities and loans, Federal funds purchased, securities sold under agreements to repurchase, and advances from the FHLB. As of ~~June~~September 30, 2025, our average monthly liquidity ratio (defined as net cash plus short-term and marketable securities to net deposits and short-term liabilities) was 1314.91% compared to 14.4% as of December 31, 2024.

The Bank is a shareholder of the FHLB, which enables the Bank to have access to lower-cost FHLB financing when necessary. At ~~June~~September 30, 2025, the Bank had an approved credit line with the FHLB of San Francisco totaling $8.1230 billion. Total advances from the FHLB of San Francisco were $~~412~~190.0 million and standby letters of credit issued by the FHLB on the Company’s behalf were $~~930~~949.0 million as of ~~June~~September 30, 2025. These borrowings bear fixed rates and are secured by the Bank’s loans. See Note 10 to the Consolidated Financial Statements. At ~~June~~September 30, 2025, the Bank pledged $~~351~~1.463 ~~million~~billion of its commercial loans and $1.65 million of securities to the Federal Reserve Bank’s Discount Window under the Borrower-in-Custody program. The Bank had borrowing capacity of $~~305~~1.048 ~~million~~billion from the Federal Reserve Bank Discount Window at ~~June~~September 30, 2025.

Liquidity can also be provided through the sale of liquid assets, which may consist of federal funds sold, securities purchased under agreements to resell, and securities available-for-sale. At ~~June~~September 30, 2025, investment securities totaled $1.6564 billion, with $1719.75 million pledged as collateral for borrowings and other commitments. The remaining balance was available as additional liquidity or to be pledged as collateral for additional borrowings.

Approximately 99.78% of our time deposits mature within one year or less as of ~~June~~September 30, 2025. Management anticipates that these deposits will reprice lower as a result of the expected decreases in the target Fed funds rate expected in 2025. Management anticipates that there may be some outflow of these deposits upon maturity due to the keen competition in the Bank’s marketplace. However, based on our historical runoff experience, we expect the outflow will not be significant and can be replenished through our normal growth in deposits. As of ~~June~~September 30, 2025, management believes all the above-mentioned sources will provide adequate liquidity during the next twelve months for the Bank to meet its operating needs.

The business activities of Bancorp consist primarily of the operation of the Bank and limited activities in other investments. The Bank paid dividends to Bancorp totaling $~~105~~175.0 million and $96156.0 million during the ~~second~~third quarter of 2025 and 2024, respectively.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We use a net interest income simulation model to measure the extent of the differences in the behavior of the lending and funding rates to changing interest rates, to project future earnings or market values under alternative interest rate scenarios. Interest rate risk arises primarily through the Company’s traditional business activities of extending loans and accepting deposits. Many factors, including but not limited to economic, market and financial conditions, movements in interest rates, and consumer preferences, affect the spread between interest earned on assets and interest paid on liabilities. The net interest income simulation model is designed to measure the volatility of net interest income and net portfolio value, defined as net present value of assets and liabilities, under immediate rising or falling interest rate scenarios in 100 basis point increments.

Although the modeling can be helpful in managing interest rate risk, it does require significant assumptions for the projection of loan prepayment rates on mortgage related assets, loan volumes and pricing, and deposit and borrowing volume and pricing, that might prove inaccurate. Because these assumptions are inherently uncertain, the model cannot precisely estimate net interest income, or precisely predict the effect of higher or lower interest rates on net interest income. Actual results will differ from simulated results due to the timing, magnitude, and frequency of interest rate changes, the differences between actual experience and the assumed volume, changes in market conditions, and management strategies, among other factors. The Company monitors its interest rate sensitivity and seeks to reduce the risk of a significant decrease in net interest income caused by a change in interest rates.

We have established a tolerance level in our policy to define and limit net interest income volatility to a change of plus or minus 520% when the hypothetical rate change is plus or minus 200 basis points, respectively. When the net interest rate simulation projects that our tolerance level will be met, or exceeded, we seek corrective action after considering, among other things, market conditions, client reaction, and the estimated impact on profitability. The Company’s simulation model also projects the net economic value of our portfolio of assets and liabilities. We have established a tolerance level in our policy to limit the loss in the net economic value of our portfolio of assets and liabilities to ~~zero~~ 15% when the hypothetical rate change is plus or minus 200 basis points.

The table below shows the estimated impact of changes in interest rates on net interest income and market value of equity as of ~~June~~September 30, 2025:

	Net Interest		Market Value
	Income		of Equity
Change in Interest Rate (Basis Points)	Volatility (1)		Volatility (2)
+200		1312.0		-89.42
+100		6.51		-34.72
-100		-20.3		34.21
-200		-41.2		56.21
(1) The percentage change in this column represents net interest income of the Company for 12 months in a stable interest rate environment versus the net interest income in the various rate scenarios. Much of the increase in net interest income is due to the lag in the repricing of certificates of deposits which mature throughout the twelve month period.
(2) The percentage change in this column represents the net portfolio value of the Company in a stable interest rate environment versus the net portfolio value in the various rate scenarios.

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Item 4. CONTROLS AND PROCEDURES.

The Company’s principal executive officer and principal financial officer have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this quarterly report. Based upon their evaluation, the principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There has not been any change in our internal control over financial reporting that occurred during the ~~second~~third quarter of 2025 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS.

From time to time, Bancorp and its subsidiaries are parties to litigation that arises in the ordinary course of business or otherwise is incidental to various aspects of its operations. Based upon information available to the Company and its review of any such litigation with counsel, management presently believes that the liability relating to such litigation, if any, would not be expected to have a material adverse impact on the Company’s consolidated financial condition, results of operations or liquidity taken as a whole. The outcome of litigation and other legal and regulatory matters is inherently uncertain, however, and it is possible that one or more of the legal matters currently pending or threatened against the Company could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity taken as a whole.

Item 1A. RISK FACTORS.

The Company is not aware of any material change to the risk factors as previously disclosed in Part I, Item 1A, of the Company’s 2024 Form 10-K for the year ended December 31, 2024. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors disclosed in Part I, Item 1A, of the Company’s 2024 Form 10-K for the year ended December 31, 2024, which could materially and adversely affect the Company’s business, financial condition, results of operations and stock price. The risk factors disclosed in the 2024 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties, including those not presently known to the Company or that the Company presently believes not to be material, could also materially and adversely affect the Company’s business, financial condition, and results of operations and stock price.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Issuer Purchases of Equity Securities
Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
(April 1, 2025 - April 30, 2025)		0	$	0.00		0	$	0
(July 1, 2025 - July 31, 2025)		250,000	$	46.49		250,000	$	102,816,300
(May 1, 2025 - May 31, 2025)		0	$	0.00		0	$	0
(August 1, 2025 - August 31, 2025)		730,000	$	46.57		730,000	$	68,823,650
(June 1, 2025 - June 30, 2025)		804,179	$	44.22		804,179	$	114,438,105
(September 1, 2025 - September 30, 2025)		90,000	$	49.73		90,000	$	64,347,566
Total		~~804~~1,~~179~~070,000	$	4446.2281		~~804~~1,~~179~~070,000	$	~~114~~64,~~438~~347,~~105~~566

For a discussion of limitations on the payment of dividends, see “Dividend Policy” and “Liquidity” under Part I—Item 2— “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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Item 3. DEFAULTS UPON SENIOR SECURITIES.

Not applicable.

Item 4. MINE SAFETY DISCLOSURES.

Not applicable.

Item 5. OTHER INFORMATION.

During the quarter ended ~~June~~September 30, 2025, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements, as defined under Item 408(a) of Regulation S-K~~, except for Mr~~. Chang M. Liu, President and Chief Executive Officer of the Company, who entered into a Rule 10b5-1 trading agreement on May 1, 2025, with trading term ending on April 5, 2027. The trading plan provides for 20% of the vested net shares, after tax withholding, that are received by Mr. Liu as equity compensation during the term of the plan to be sold on future dates following the vesting dates of such equity awards. The trading plan also provides for 5,165 shares to be sold on or after October 28, 2025, which sale is intended to cover additional estimated tax liabilities associated with Performance RSU shares that vested on December 31, 2024 and were issued to him on April 1, 2025. The trading plan was adopted by Mr. Liu in order to generate cash to pay his estimated tax liabilities in connection with the vesting of such equity awards, which estimated tax liabilities are in excess of the value of the shares withheld.

Item 6. EXHIBITS.

Exhibit 3.1	Restated Certificate of Incorporation. Previously filed with the Securities and Exchange Commission on February 29, 2016, as an exhibit to Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015, and incorporated herein by reference.
Exhibit 3.1.1	Amendment to Restated Certificate of Incorporation. Previously filed with the Securities and Exchange Commission on February 29, 2016, as an exhibit to Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2015, and incorporated herein by reference.
Exhibit 3.2	Amended and Restated Bylaws, effective February 16, 2017. Previously filed with the Securities and Exchange Commission on February 17, 2017, as an exhibit to the Bancorp’s Current Report on Form 8-K and incorporated herein by reference.
Exhibit 3.3	Certificate of Designation of Series A Junior Participating Preferred Stock. Previously filed with the Securities and Exchange Commission on February 28, 2012, as an exhibit to the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference.
Exhibit 3.4	Certificate of Designation of Fixed Rate Cumulative Perpetual Preferred Stock, Series B. Previously filed with the Securities and Exchange Commission on March 3, 2014, as an exhibit to the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2013 and incorporated herein by reference.
Exhibit 10.1	Cathay General Bancorp 2005 Incentive Plan (As Amended and Restated).
Exhibit 31.1+	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2+	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1++	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2++	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document*
Exhibit 101.SCH	Inline XBRL Taxonomy Extension Schema Document*
Exhibit 101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*
Exhibit 101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*
Exhibit 101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
Exhibit 101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
Exhibit 104	Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document*

____________________

+	Filed herewith.

++	Furnished herewith.

*	Filed electronically herewith.

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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 thereunto duly authorized.

	Cathay General Bancorp
	(Registrant)
Date: August 8, 2025
Date: November 7, 2025
	/s/ Chang M. Liu
	Chang M. Liu
	President and Chief Executive Officer

Date: August 8, 2025
Date: November 7, 2025
	/s/ Heng W. Chen
	Heng W. Chen
	Executive Vice President and
	Chief Financial Officer

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