BayCom Corp 10-Q

Item 1. Financial Statements ​ Condensed Consolidated Balance Sheets (unaudited) 3 Condensed Consolidated Statements of Income (unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (unaudited) 5 Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) 6 Condensed Consolidated Statements of Cash Flows (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 9 ​ ​ ​ 2 Table of Contents ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ASSETS ​ ​ ​ ​ Cash due from banks ​ $ 18,561 ​ $ 26,785 Federal funds sold and interest-bearing balances in banks ​ 287,343 ​ 179,729 Cash and cash equivalents ​ ​ 305,904 ​ 206,514 Investment securities available-for-sale ("AFS"), at fair value, net of allowance for credit losses of $ 0 at both March 31, 2026 and December 31, 2025 ​ ​ 189,432 ​ 179,708 Equity securities, at fair value ​ ​ 12,613 ​ ​ 12,554 Federal Home Loan Bank ("FHLB") stock, at par ​ ​ 11,524 ​ 11,524 Federal Reserve Bank ("FRB") stock, at par ​ ​ 7,727 ​ 7,722 Loans held for sale ​ ​ 125 ​ 1,316 Loans, net of allowance for credit losses of $ 20,600 at March 31, 2026 and $ 21,210 at December 31, 2025 ​ ​ 1,990,682 ​ 2,045,126 Premises and equipment, net ​ ​ 13,036 ​ 13,220 Core deposit intangible, net ​ ​ 1,631 ​ 1,745 Cash surrender value of bank owned life insurance ("BOLI") policies, net ​ ​ 24,547 ​ 24,353 Right-of-use assets ("ROU"), net ​ ​ 13,590 ​ ​ 12,665 Goodwill ​ ​ 38,838 ​ 38,838 Interest receivable and other assets ​ ​ 38,887 ​ 38,392 Total assets ​ $ 2,648,536 ​ $ 2,593,677 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ ​ ​ Noninterest and interest bearing deposits ​ $ 2,265,390 ​ $ 2,213,640 Junior subordinated deferrable interest debentures, net ​ 5,874 ​ 8,726 Subordinated debt, net ​ ​ — ​ ​ — Salary continuation plan ​ 5,274 ​ 5,122 Lease liabilities ​ 14,568 ​ 13,659 Interest payable and other liabilities ​ 13,442 ​ 13,976 Total liabilities ​ 2,304,548 ​ 2,255,123 Commitments and contingencies (Note 17) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders' equity ​ ​ ​ ​ Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at both March 31, 2026 and December 31, 2025 ​ — ​ — Common stock, no par value; 100,000,000 shares authorized; 10,909,317 and 10,887,681 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively ​ 166,186 ​ 165,998 Additional paid in capital ​ 287 ​ 287 Accumulated other comprehensive loss, net of tax ​ ( 6,294 ) ​ ( 6,634 ) Retained earnings ​ 183,809 ​ 178,903 Total shareholders’ equity ​ 343,988 ​ 338,554 Total liabilities and shareholders’ equity ​ $ 2,648,536 ​ $ 2,593,677 ​ ​ ​ See Notes to Condensed Consolidated Financial Statements. ​ ​ 3 Table of Contents ​ ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except for share and per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ Interest income: ​ ​ ​ ​ Loans, including fees ​ $ 29,578 ​ $ 27,149 ​ Investment securities ​ 2,132 ​ 2,454 ​ Fed funds sold and interest-bearing balances in banks ​ ​ 2,136 ​ ​ 2,649 ​ FHLB dividends ​ 584 ​ 249 ​ FRB dividends ​ 120 ​ 145 ​ Total interest and dividend income ​ 34,550 ​ 32,646 ​ Interest expense: ​ ​ ​ ​ ​ Deposits ​ 8,964 ​ 8,683 ​ Subordinated debt ​ ​ — ​ ​ 891 ​ Junior subordinated deferrable interest debentures ​ 390 ​ 192 ​ Total interest expense ​ 9,354 ​ 9,766 ​ Net interest income ​ 25,196 ​ 22,880 ​ (Reversal of) provision for credit losses ​ ( 670 ) ​ 642 ​ Net interest income after (reversal of) provision for credit losses ​ 25,866 ​ 22,238 ​ Noninterest income: ​ ​ ​ ​ ​ Gain on sale of loans ​ 123 ​ 198 ​ Gain (loss) on equity securities ​ ​ 58 ​ ​ ( 255 ) ​ Service charges and other fees ​ 741 ​ 945 ​ Loan servicing and other loan fees ​ 287 ​ 389 ​ Gain (loss) on investment in Small Business Investment Company (“SBIC”) fund ​ 85 ​ ( 109 ) ​ Other income and fees ​ 251 ​ 272 ​ Total noninterest income ​ 1,545 ​ 1,440 ​ Noninterest expense: ​ ​ ​ ​ ​ Salaries and employee benefits ​ 10,849 ​ 9,935 ​ Occupancy and equipment ​ 2,127 ​ 2,136 ​ Data processing ​ 2,038 ​ 1,853 ​ Other expense ​ 1,492 ​ 2,065 ​ Total noninterest expense ​ 16,506 ​ 15,989 ​ Income before provision for income taxes ​ 10,905 ​ 7,689 ​ Provision for income taxes ​ 2,725 ​ 1,987 ​ Net income ​ $ 8,180 ​ $ 5,702 ​ Earnings per common share: ​ ​ ​ ​ ​ Basic earnings per common share ​ $ 0.75 ​ $ 0.51 ​ Weighted average common shares outstanding ​ 10,909,077 ​ 11,136,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per common share ​ $ 0.75 ​ $ 0.51 ​ Weighted average common shares outstanding ​ 10,909,077 ​ 11,136,058 ​ ​ ​ See Notes to Condensed Consolidated Financial Statements. ​ ​ 4 Table of Contents ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ Net income ​ $ 8,180 ​ $ 5,702 Other comprehensive income: ​ ​ ​ ​ Change in unrealized gain on AFS securities ​ 318 ​ 2,928 Deferred tax benefit (expense) ​ 22 ​ ( 833 ) Other comprehensive income, net of tax ​ 340 ​ 2,095 Total comprehensive income ​ $ 8,520 ​ $ 7,797 ​ See Notes to Condensed Consolidated Financial Statements. ​ ​ ​ 5 Table of Contents ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (In thousands, except for share and per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common ​ Additional ​ Other ​ ​ ​ ​ Total ​ Number of ​ Stock ​ Paid in ​ Comprehensive ​ Retained ​ Shareholders’ ​ Shares ​ Amount ​ Capital ​ Income/(Loss) ​ Earnings ​ Equity Three months ended March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2025 10,887,681 ​ $ 165,998 ​ $ 287 ​ $ ( 6,634 ) ​ $ 178,903 ​ $ 338,554 Net income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 8,180 ​ ​ 8,180 Other comprehensive income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ 340 ​ ​ ​ ​ ​ 340 Restricted stock granted 21,636 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Cash dividends of $ 0.30 per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 3,274 ) ​ ​ ( 3,274 ) Stock based compensation ​ ​ ​ 188 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 188 Balance, March 31, 2026 10,909,317 ​ $ 166,186 ​ $ 287 ​ $ ( 6,294 ) ​ $ 183,809 ​ $ 343,988 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2024 11,121,475 ​ $ 172,254 ​ $ 287 ​ $ ( 13,006 ) ​ $ 164,831 ​ $ 324,366 Net income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5,702 ​ ​ 5,702 Other comprehensive income, net ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,095 ​ ​ ​ ​ ​ 2,095 Restricted stock granted 22,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Forfeiture of restricted stock grants ( 3,221 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ — Cash dividends of $ 0.15 per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,671 ) ​ ​ ( 1,671 ) Stock based compensation ​ ​ ​ 151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 151 Repurchase of shares ( 50,793 ) ​ ​ ( 1,306 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1,306 ) Balance, March 31, 2025 11,089,682 ​ $ 171,099 ​ $ 287 ​ $ ( 10,911 ) ​ $ 168,862 ​ $ 329,337 ​ ​ See Notes to Condensed Consolidated Financial Statements. ​ ​ 6 Table of Contents ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from operating activities: ​ ​ ​ ​ ​ Net income ​ $ 8,180 ​ $ 5,702 ​ ​ Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ (Reversal of) provision for credit losses ​ ( 670 ) ​ 642 ​ ​ Deferred tax expense ​ 3,084 ​ 801 ​ ​ (Accretion) amortization on acquired loans ​ ( 562 ) ​ 103 ​ ​ Gain on sale of loans ​ ( 123 ) ​ ( 198 ) ​ ​ Proceeds from sale of loans originated for sale ​ 1,637 ​ 3,738 ​ ​ Loans originated for sale ​ ( 1,502 ) ​ ( 2,804 ) ​ ​ Amortization on junior subordinated debentures ​ 241 ​ 20 ​ ​ Increase in cash surrender value of life insurance policies ​ ( 194 ) ​ ( 186 ) ​ ​ Amortization/accretion of premiums/discounts on investment securities, net ​ 18 ​ 28 ​ ​ (Gain) loss on equity securities ​ ​ ( 58 ) ​ ​ 255 ​ ​ Depreciation and amortization ​ 486 ​ 470 ​ ​ Core deposit intangible amortization ​ 114 ​ 263 ​ ​ Stock based compensation expense ​ 188 ​ 151 ​ ​ Increase (decrease) in deferred loan origination fees, net ​ 116 ​ ( 174 ) ​ ​ Net change in interest receivable and other assets ​ ( 2,675 ) ​ 941 ​ ​ Increase (decrease) in salary continuation plan, net ​ 152 ​ ( 13 ) ​ ​ Net change in interest payable and other liabilities ​ ( 1,439 ) ​ ( 459 ) ​ ​ Net cash provided by operating activities ​ 6,993 ​ 9,280 ​ ​ Cash flows from investing activities: ​ ​ ​ ​ ​ ​ Proceeds from maturities of interest bearing deposits in banks ​ — ​ 249 ​ ​ Purchase of investment securities AFS ​ ( 19,706 ) ​ — ​ ​ Proceeds from maturities, repayments and calls of investment securities AFS ​ 10,282 ​ 3,828 ​ ​ Purchase of FRB stock ​ ( 5 ) ​ ( 3 ) ​ ​ Proceeds from sale of loans held for investment ​ ​ 919 ​ ​ — ​ ​ Purchase of loans ​ ​ ( 3,169 ) ​ ​ ( 7,550 ) ​ ​ Decrease (increase) in loans, net ​ 58,989 ​ ( 4,990 ) ​ ​ Purchase of equipment and leasehold improvements, net ​ ( 302 ) ​ ( 143 ) ​ ​ Net cash provided by (used in) investing activities ​ 47,008 ​ ( 8,609 ) ​ ​ ​ ​ 7 Table of Contents ​ BAYCOM CORP AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – (continued) (In thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ ​ Increase (decrease) in noninterest and interest bearing deposits in banks, net ​ 31,811 ​ ( 74,169 ) Increase (decrease) in time deposits, net ​ 19,939 ​ ( 31,010 ) Repayment of junior subordinated debentures ​ ​ ( 3,093 ) ​ ​ — ​ Repurchase of common stock ​ — ​ ( 1,306 ) Dividends paid on common stock ​ ​ ( 3,267 ) ​ ​ ( 1,669 ) ​ Net cash provided by (used in) financing activities ​ 45,390 ​ ( 108,154 ) Increase (decrease) in cash and cash equivalents ​ 99,391 ​ ( 107,483 ) Cash and cash equivalents at beginning of period ​ 206,514 ​ 364,032 Cash and cash equivalents at end of period ​ $ 305,905 ​ $ 256,549 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information: ​ ​ ​ ​ ​ Cash paid during the year for: ​ ​ ​ ​ ​ Interest expense ​ $ 9,117 ​ $ 10,555 ​ Income taxes paid, net ​ ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ Change in unrealized gain on AFS securities, net of tax ​ $ 340 ​ $ 2,095 ​ Transfer of loans to held-for-sale ​ ​ 125 ​ ​ 276 ​ Recognition of ROU assets in exchange for lease obligations ​ ​ 1,746 ​ ​ 1,469 ​ Cash dividends declared on common stock not yet paid ​ ​ ( 3,274 ) ​ ​ ( 1,671 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Notes to Condensed Consolidated Financial Statements. ​ ​ ​ ​ 8 Table of Contents ​ NOTE 1 – BASIS OF PRESENTATION BayCom Corp (the “Company”) is a bank holding company headquartered in Walnut Creek, California. United Business Bank (the “Bank”), the Company’s wholly owned banking subsidiary, is a California state-chartered bank which provides a broad range of financial services primarily to local small and mid-sized businesses, service professionals and individuals. In its 22 years of operation, the Bank has grown to 34 full-service banking branches at March 31, 2026, with 16 locations in California, one in Nevada, one in Washington, five in New Mexico and 11 in Colorado. The condensed consolidated financial statements include the accounts of the Company and the Bank. All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Dollar amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded to one decimal point, and if they are above $1.0 billion, they are rounded to two decimal points. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to the current year presentation. None of the reclassifications impacted consolidated net income, earnings per share or shareholders’ equity. NOTE 2 - ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE Recent Accounting Guidance Not Yet Effective In November 2024, the FASB issued ASU 2024-03, Income Statement (Topic 220) – Reporting Comprehensive Income – Expense Disaggregation Disclosures, to address investor requests for more detailed information about certain expense types. The new standard requires public business entities to disclose disaggregated information about specific natural expense categories underlying relevant expense captions presented on the face of the income statement within continuing operations, such as employee compensation, depreciation, and intangible asset amortization. The amendments are effective for public business entities for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Entities are required to adopt the amendments prospectively. ​ In January 2025, the FASB issued ASU 2025-01, Income Statement (Topic 220) – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Clarifying the Effective Date, to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. ​ Purchased Loans – Financial Instruments Credit losses (Topic 326) – In November 2025, the FASB issued ASU 2025-08 to improve the accounting for certain acquired loans, specifically purchased seasoned loans (“PSLs”). The amendments expand the application of the gross-up approach to qualifying purchased loans acquired without significant credit deterioration. Under the amendments, an allowance for credit losses is recorded at acquisition with a corresponding adjustment to the loan’s amortized cost basis, eliminating the recognition of a Day 1 credit loss expense for such loans. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. ​ Interim Reporting (Topic 270) – In December 2025, the FASB issued ASU 2025-11 to clarify interim disclosure requirements by providing a comprehensive list of disclosures that are required in interim reporting periods. 9 Table of Contents The amendments also introduce a disclosure principle requiring entities to disclose events and changes that occur after the end of most recent annual reporting period that have a material impact on the entity. The amended guidance is effective for the Company on January 1, 2028, with early adoption permitted. The amendments may be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. ​ ​ ​ NOTE 3 – INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, and estimated fair values of securities AFS at the dates indicated are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ Estimated ​ ​ cost ​ gains ​ losses ​ fair value March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 25,991 ​ $ 96 ​ $ ( 1,022 ) ​ $ 25,065 Mortgage-backed securities ​ ​ 60,957 ​ 236 ​ ( 2,649 ) ​ 58,544 Collateralized mortgage obligations ​ 44,136 ​ 150 ​ ( 1,383 ) ​ 42,903 SBA securities ​ 2,605 ​ 9 ​ ( 37 ) ​ 2,577 ABS securities ​ 1,616 ​ ​ — ​ ​ ( 12 ) ​ ​ 1,604 Corporate bonds ​ 62,853 ​ 16 ​ ( 4,130 ) ​ 58,739 Total ​ $ 198,158 ​ $ 507 ​ $ ( 9,233 ) ​ $ 189,432 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ Estimated ​ ​ cost ​ gains ​ losses ​ fair value December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 26,278 ​ $ 159 ​ $ ( 803 ) ​ $ 25,634 Mortgage-backed securities ​ ​ 47,908 ​ 366 ​ ( 2,596 ) ​ ​ 45,678 Collateralized mortgage obligations ​ 45,263 ​ 214 ​ ( 1,333 ) ​ 44,144 SBA securities ​ 2,779 ​ 7 ​ ( 38 ) ​ 2,748 ABS securities ​ 1,677 ​ ​ — ​ ​ ( 6 ) ​ 1,671 Corporate bonds ​ 64,848 ​ 74 ​ ( 5,089 ) ​ 59,833 Total ​ $ 188,753 ​ $ 820 ​ $ ( 9,865 ) ​ $ 179,708 ​ No allowances for credit losses have been recognized on investment debt securities AFS in an unrealized loss position at both March 31, 2026 and December 31, 2025. ​ Amortized cost and fair values exclude accrued interest receivable of $ 1.3 million at both March 31, 2026 and December 31, 2025, which is included in interest receivable and other assets in the condensed consolidated balance sheets. ​ During the three months ended March 31, 2026 and the three months ended March 31, 2025, the Company sold no securities AFS. ​ 10 Table of Contents The amortized cost and estimated fair value of securities AFS at the dates indicated by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 ​ ​ ​ ​ Amortized ​ ​ ​ Estimated ​ ​ ​ Amortized ​ ​ ​ Estimated ​ ​ cost ​ fair value ​ cost ​ fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities AFS ​ ​ ​ ​ ​ ​ ​ ​ Due in one year or less ​ $ 5,398 ​ $ 5,109 ​ $ 5,417 ​ $ 4,819 Due after one through five years ​ 17,917 ​ 16,903 ​ 20,602 ​ 19,600 Due after five years through ten years ​ 75,615 ​ 70,776 ​ 75,478 ​ 70,038 Due after ten years ​ 99,228 ​ 96,644 ​ 87,256 ​ 85,251 Total ​ $ 198,158 ​ $ 189,432 ​ $ 188,753 ​ $ 179,708 ​ At both March 31, 2026 and December 31, 2025, there were no securities pledged. ​ The estimated fair value and gross unrealized losses for securities AFS aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 4,450 ​ $ ( 166 ) ​ $ 12,216 ​ $ ( 856 ) ​ $ 16,666 ​ $ ( 1,022 ) Mortgage-backed securities ​ ​ 13,086 ​ ​ ( 138 ) ​ ​ 20,776 ​ ​ ( 2,511 ) ​ ​ 33,862 ​ ​ ( 2,649 ) Collateralized mortgage obligations ​ 14,372 ​ ​ ( 58 ) ​ ​ 17,584 ​ ​ ( 1,325 ) ​ 31,956 ​ ( 1,383 ) SBA securities ​ — ​ ​ — ​ ​ 1,355 ​ ​ ( 37 ) ​ 1,355 ​ ( 37 ) ABS securities ​ ​ — ​ ​ — ​ ​ 1,604 ​ ​ ( 12 ) ​ ​ 1,604 ​ ​ ( 12 ) Corporate bonds ​ 2,970 ​ ​ ( 30 ) ​ ​ 53,400 ​ ​ ( 4,100 ) ​ 56,370 ​ ( 4,130 ) Total ​ $ 34,878 ​ $ ( 392 ) ​ $ 106,935 ​ $ ( 8,841 ) ​ $ 141,813 ​ $ ( 9,233 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or more ​ Total ​ ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ ​ Estimated ​ ​ ​ Unrealized ​ ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 3,011 ​ $ ( 19 ) ​ $ 12,314 ​ $ ( 784 ) ​ $ 15,325 ​ $ ( 803 ) Mortgage-backed securities ​ ​ 4,481 ​ ​ ( 29 ) ​ ​ 21,412 ​ ​ ( 2,567 ) ​ ​ 25,893 ​ ​ ( 2,596 ) Collateralized mortgage obligations ​ ​ 3,720 ​ ​ ( 35 ) ​ ​ 20,913 ​ ​ ( 1,298 ) ​ 24,633 ​ ( 1,333 ) SBA securities ​ 445 ​ ​ — ​ ​ 1,509 ​ ​ ( 38 ) ​ 1,954 ​ ( 38 ) ABS securities ​ 883 ​ ​ ( 3 ) ​ ​ 788 ​ ​ ( 3 ) ​ ​ 1,671 ​ ​ ( 6 ) Corporate bonds ​ 987 ​ ​ ( 13 ) ​ ​ 57,424 ​ ​ ( 5,076 ) ​ 58,411 ​ ( 5,089 ) Total ​ $ 13,527 ​ $ ( 99 ) ​ $ 114,360 ​ $ ( 9,766 ) ​ $ 127,887 ​ $ ( 9,865 ) ​ At March 31, 2026, the Company held 318 securities AFS, of which 158 were in an unrealized loss position for more than twelve months and 46 were in an unrealized loss position for less than twelve months. The Company anticipates full recovery of amortized cost with respect to these securities at maturity or sooner in the event of a more favorable market interest rate environment. Allowance for credit losses on investment debt securities available-for-sale ​ Investment debt securities that were in an unrealized loss position as of March 31, 2026 were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or changes in required yields by investors in these types of securities, among other factors. This assessment first includes a determination of 11 Table of Contents whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. In making this assessment, management considers the nature of the security and any related government guarantees, any changes to the rating of the security by a rating agency, creditworthiness of the issuers/guarantors, the underlying collateral, the financial conditions and prospects of the issuer, and any adverse conditions specifically related to the security, among other factors. As of March 31, 2026, the Company expects to recover the amortized cost basis of its securities. The Company has no present intent to sell any investment securities with unrealized losses, and it is not more likely than not that the Company will be required to sell securities with unrealized losses before recovery of their amortized cost. The decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers of these securities continue to make timely principal and interest payments. No allowances for credit losses have been recognized on investment debt securities AFS in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality at March 31, 2026. Equity Securities ​ The Company recognized a net gain on equity securities of $ 58,000 and a net loss of $ 255,000 for the three months ended March 31, 2026 and 2025, respectively. Equity securities were $ 12.6 million as of both March 31, 2026 and December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOTE 4 – LOANS The Company’s loan portfolio at the dates indicated is summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Commercial and industrial ​ $ 167,311 ​ $ 175,409 Construction and land ​ 10,137 ​ 8,958 Commercial real estate ​ 1,720,539 ​ 1,766,964 Residential ​ 111,475 ​ 113,186 Consumer ​ 1,292 ​ 1,175 Total loans ​ 2,010,754 ​ 2,065,692 Net deferred loan costs ​ 528 ​ 644 Allowance for credit losses ​ ( 20,600 ) ​ ( 21,210 ) Net loans ​ $ 1,990,682 ​ $ 2,045,126 ​ Net loans exclude accrued interest receivable of $ 6.4 million and $ 6.6 million at March 31, 2026 and December 31, 2025, respectively, which is included in interest receivable and other assets in the condensed consolidated balance sheets. ​ 12 Table of Contents The Company’s total individually evaluated loans, including collateral dependent loans, nonaccrual loans, modified loans to borrowers experiencing financial difficulty, and accreting purchase credit deteriorated (“PCD”) loans that have experienced post-acquisition declines in cash flows expected to be collected are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ ​ ​ Construction ​ ​ ​ Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and industrial ​ and land ​ real estate ​ Residential ​ Consumer ​ Total March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded investment in loans individually evaluated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With no specific allowance recorded ​ $ — ​ $ — ​ $ 10,054 ​ $ 685 ​ $ — ​ $ 10,739 With a specific allowance recorded ​ — ​ — ​ 4,404 ​ — ​ — ​ 4,404 Total recorded investment in loans individually evaluated ​ $ — ​ $ — ​ $ 14,458 ​ $ 685 ​ $ — ​ $ 15,143 Specific allowance on loans individually evaluated ​ $ — ​ $ — ​ $ 1,346 ​ $ — ​ $ — ​ $ 1,346 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded investment in loans individually evaluated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With no specific allowance recorded ​ $ — ​ $ — ​ $ 9,680 ​ $ 711 ​ $ — ​ $ 10,391 With a specific allowance recorded ​ — ​ — ​ 4,472 ​ — ​ — ​ 4,472 Total recorded investment in loans individually evaluated ​ $ — ​ $ — ​ $ 14,152 ​ $ 711 ​ $ — ​ $ 14,863 Specific allowance on loans individually evaluated ​ $ — ​ $ — ​ $ 1,428 ​ $ — ​ $ — ​ $ 1,428 ​ The recorded investment in individually evaluated loans on nonaccrual were $ 15.1 million and $ 13.4 million at March 31, 2026 and December 31, 2025, respectively. The Company may modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies. These modifications may result in an interest rate reduction, term extension, an other-than-insignificant payment delay, or a combination thereof. The Company typically does not offer principal forgiveness. An assessment of whether a borrower is experiencing financial difficulty is made on the date of modification. The effect of most modifications made for borrowers experiencing financial difficulty is already included in the allowance for credit losses on loans because of the measurement methodologies used to estimate the allowance. During the three months ended March 31, 2026 and 2025, there were no modifications of loans to borrowers experiencing financial difficulty. 13 Table of Contents A summary of previously modified loans to borrowers experiencing financial difficulty by type of concession and type of loan, as of the dates indicated, is set forth below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ Rate ​ ​ ​ Term ​ ​ ​ Rate & term ​ ​ ​ ​ ​ ​ % of Total ​ ​ loans ​ modification ​ modification ​ modification ​ Total ​ loans outstanding March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial — ​ $ — ​ $ — ​ $ — ​ $ — ​ ​ — % Construction and land — ​ — ​ — ​ — ​ — ​ — % Commercial real estate 1 ​ — ​ 542 ​ — ​ 542 ​ 0.03 % Residential 1 ​ — ​ ​ 685 ​ — ​ 685 ​ 0.61 % Consumer — ​ — ​ — ​ — ​ — ​ — % Total 2 ​ $ — ​ $ 1,227 ​ $ — ​ $ 1,227 ​ ​ 0.06 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ Rate ​ ​ ​ Term ​ ​ ​ Rate & term ​ ​ ​ ​ ​ ​ % of Total ​ ​ loans ​ modification ​ modification ​ modification ​ Total ​ loans outstanding December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial 1 ​ $ — ​ $ 73 ​ $ — ​ $ 73 ​ ​ 0.04 % Construction and land — ​ — ​ — ​ — ​ — ​ — % Commercial real estate 1 ​ — ​ 554 ​ — ​ 554 ​ 0.03 % Residential 1 ​ — ​ ​ 711 ​ — ​ 711 ​ 0.63 % Consumer — ​ — ​ — ​ — ​ — ​ — % Total 3 ​ $ — ​ $ 1,338 ​ $ — ​ $ 1,338 ​ ​ 0.06 % ​ For the three months ended March 31, 2026 and 2025, the Company recorded no charge-offs for modified loans to borrowers experiencing financial difficulty. ​ At both March 31, 2026 and December 31, 2025, individually evaluated modified loans to borrowers experiencing financial difficulty had no related allowance. At both dates, none of the modified loans to borrowers experiencing financial difficulty were performing in accordance with their modified terms. All accruing modified loans to borrowers experiencing financial difficulty, if any, are included in the loans individually evaluated in the calculation of the allowance for credit losses. ​ Risk Rating System The Company evaluates and assigns a risk grade to each loan based on certain criteria to assess the credit quality of the loan. The assignment of a risk rating is done for each individual loan. Loans are graded from inception and on a continuing basis until the debt is repaid. Any adverse or beneficial trends will trigger a review of the loan risk rating. Each loan is assigned a risk grade based on its characteristics. Loans with low to average credit risk are assigned a lower risk grade than those with higher credit risk as determined by the individual loan characteristics. The Company’s Pass loans include loans with acceptable business or individual credit risk where the borrower’s operations, cash flow or financial condition provides evidence of low to average levels of risk. Loans that are assigned higher risk grades are loans that exhibit the following characteristics: Special Mention loans have potential weaknesses that deserve close attention. If left uncorrected, these potential weaknesses may result in a deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Special Mention is a temporary rating, pending the occurrence of an event that would cause the risk rating either to improve or to be downgraded. Loans in this category would be characterized by any of the following situations: ● Credit that is currently protected but is potentially a weak asset; 14 Table of Contents ● Credit that is difficult to manage because of an inadequate loan agreement, the condition of and/or control over collateral, failure to obtain proper documentation, or any other deviation from product lending practices; and ● Adverse financial trends. Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans classified substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. The potential loss does not have to be recognizable in an individual credit for that credit to be risk rated Substandard. A loan can be fully and adequately secured and still be considered Substandard. Some characteristics of Substandard loans are: ● Inability to service debt from ordinary and recurring cash flow; ● Chronic delinquency; ● Reliance upon alternative sources of repayment; ● Term loans that are granted on liberal terms because the borrower cannot service normal payments for that type of debt; ● Repayment dependent upon the liquidation of collateral; ● Inability to perform as agreed, but adequately protected by collateral; ● Necessity to renegotiate payments to a non-standard level to ensure performance; and ● The borrower is in bankruptcy, or for any other reason, future repayment is dependent on court action. Doubtful loans have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and value, highly questionable and improbable. Doubtful loans have a high probability of loss, yet certain important and reasonably specific pending factors may work toward the strengthening of the credit. Losses are recognized as charges to the allowance when the loan or portion of the loan is considered uncollectible or at the time of foreclosure. Recoveries on loans previously charged off are credited to the allowance for credit losses. Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of initial origination. During the three months ended March 31, 2026, and the year ended December 31, 2025, $ 37,000 and no ne, respectively, of the Company’s revolving loans were converted to term loans. 15 Table of Contents The following tables present the internally assigned risk grade by class of loans at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ Term loans - amortized cost by origination year ​ loans ​ ​ ​ ​ 2026 ​ 2025 ​ 2024 ​ 2023 ​ 2022 ​ Prior ​ amortized cost ​ Total March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 5,492 ​ $ 30,407 ​ $ 44,472 ​ $ 13,148 ​ $ 15,660 ​ $ 34,233 ​ $ 23,070 ​ $ 166,482 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 236 ​ ​ — ​ ​ 236 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ 152 ​ ​ — ​ ​ 402 ​ ​ 39 ​ ​ 593 Total commercial and industrial ​ $ 5,492 ​ $ 30,407 ​ $ 44,472 ​ $ 13,300 ​ $ 15,660 ​ $ 34,871 ​ $ 23,109 ​ $ 167,311 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ — Construction and land: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ — ​ $ 340 ​ $ 9,500 ​ ​ — ​ ​ — ​ ​ 297 ​ ​ — ​ $ 10,137 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total construction and land ​ $ — ​ $ 340 ​ $ 9,500 ​ $ — ​ $ — ​ $ 297 ​ $ — ​ $ 10,137 YTD gross charge-offs ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 29,067 ​ $ 317,885 ​ $ 168,130 ​ ​ 67,689 ​ ​ 305,713 ​ ​ 695,350 ​ ​ 4,133 ​ $ 1,587,967 Special mention ​ ​ — ​ ​ — ​ ​ 8,566 ​ ​ — ​ ​ 30,473 ​ ​ 51,187 ​ ​ — ​ ​ 90,226 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 6,700 ​ ​ 35,646 ​ ​ — ​ ​ 42,346 Total commercial real estate ​ $ 29,067 ​ $ 317,885 ​ $ 176,696 ​ $ 67,689 ​ $ 342,886 ​ $ 782,183 ​ $ 4,133 ​ $ 1,720,539 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 16 ​ ​ — ​ $ 16 Residential: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 3,353 ​ $ 47,620 ​ $ 18,563 ​ ​ — ​ ​ — ​ ​ 36,146 ​ ​ 4,894 ​ $ 110,576 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 41 ​ ​ 10 ​ ​ 51 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 784 ​ ​ 64 ​ ​ 848 Total residential ​ $ 3,353 ​ $ 47,620 ​ $ 18,563 ​ $ — ​ $ — ​ $ 36,971 ​ $ 4,968 ​ $ 111,475 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ — Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 158 ​ $ 254 ​ $ 369 ​ ​ — ​ ​ 14 ​ ​ 104 ​ ​ 393 ​ $ 1,292 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total consumer ​ $ 158 ​ $ 254 ​ $ 369 ​ $ — ​ $ 14 ​ $ 104 ​ $ 393 ​ $ 1,292 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ — ​ $ 1 Total loans outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk ratings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 38,070 ​ $ 396,506 ​ $ 241,034 ​ $ 80,837 ​ $ 321,387 ​ $ 766,130 ​ $ 32,490 ​ $ 1,876,454 Special mention ​ ​ — ​ ​ — ​ ​ 8,566 ​ ​ — ​ ​ 30,473 ​ ​ 51,464 ​ ​ 10 ​ ​ 90,513 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ 152 ​ ​ 6,700 ​ ​ 36,832 ​ ​ 103 ​ ​ 43,787 Total loans outstanding ​ $ 38,070 ​ $ 396,506 ​ $ 249,600 ​ $ 80,989 ​ $ 358,560 ​ $ 854,426 ​ $ 32,603 ​ $ 2,010,754 YTD gross charge-offs ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 17 ​ $ — ​ $ 17 ​ ​ 16 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ Term loans - amortized cost by origination year ​ loans ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ Prior ​ amortized cost ​ Total December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 32,969 ​ $ 48,839 ​ $ 14,375 ​ $ 16,454 ​ $ 7,202 ​ $ 27,511 ​ $ 26,011 ​ $ 173,361 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 580 ​ ​ — ​ ​ 580 Substandard ​ ​ — ​ ​ — ​ ​ 152 ​ ​ — ​ ​ 55 ​ ​ 980 ​ ​ 281 ​ ​ 1,468 Total commercial and industrial ​ $ 32,969 ​ $ 48,839 ​ $ 14,527 ​ $ 16,454 ​ $ 7,257 ​ $ 29,071 ​ $ 26,292 ​ $ 175,409 YTD gross charge-offs ​ $ — ​ ​ 41 ​ ​ — ​ ​ — ​ ​ — ​ ​ 154 ​ ​ — ​ $ 195 Construction and land: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 228 ​ $ 8,412 ​ $ — ​ ​ — ​ ​ 115 ​ ​ 203 ​ ​ — ​ $ 8,958 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total construction and land ​ $ 228 ​ $ 8,412 ​ $ — ​ $ — ​ $ 115 ​ $ 203 ​ $ — ​ $ 8,958 YTD gross charge-offs ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 324,728 ​ $ 177,675 ​ $ 67,901 ​ ​ 320,160 ​ ​ 333,477 ​ ​ 397,516 ​ ​ 3,287 ​ $ 1,624,744 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ 32,144 ​ ​ 23,672 ​ ​ 39,213 ​ ​ — ​ ​ 95,029 Substandard ​ ​ — ​ ​ — ​ ​ 4,835 ​ ​ — ​ ​ 14,642 ​ ​ 27,714 ​ ​ — ​ ​ 47,191 Total commercial real estate ​ $ 324,728 ​ $ 177,675 ​ $ 72,736 ​ $ 352,304 ​ $ 371,791 ​ $ 464,443 ​ $ 3,287 ​ $ 1,766,964 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 840 ​ ​ — ​ $ 840 Residential: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 47,156 ​ $ 23,536 ​ $ — ​ ​ — ​ ​ 30,969 ​ ​ 6,121 ​ ​ 4,515 ​ $ 112,297 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 11 ​ ​ 11 Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 20 ​ ​ 794 ​ ​ 64 ​ ​ 878 Total residential ​ $ 47,156 ​ $ 23,536 ​ $ — ​ $ — ​ $ 30,989 ​ $ 6,915 ​ $ 4,590 ​ $ 113,186 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ — ​ ​ — ​ $ 1 Consumer: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 273 ​ $ 119 ​ $ 260 ​ ​ 17 ​ ​ 10 ​ ​ 102 ​ ​ 394 ​ $ 1,175 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Substandard ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Total consumer ​ $ 273 ​ $ 119 ​ $ 260 ​ $ 17 ​ $ 10 ​ $ 102 ​ $ 394 ​ $ 1,175 YTD gross charge-offs ​ $ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ $ 5 Total loans outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Risk ratings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pass ​ $ 405,354 ​ $ 258,581 ​ $ 82,536 ​ $ 336,631 ​ $ 371,773 ​ $ 431,453 ​ $ 34,207 ​ $ 1,920,535 Special mention ​ ​ — ​ ​ — ​ ​ — ​ ​ 32,144 ​ ​ 23,672 ​ ​ 39,793 ​ ​ 11 ​ ​ 95,620 Substandard ​ ​ — ​ ​ — ​ ​ 4,987 ​ ​ — ​ ​ 14,717 ​ ​ 29,488 ​ ​ 345 ​ ​ 49,537 Total loans outstanding ​ $ 405,354 ​ $ 258,581 ​ $ 87,523 ​ $ 368,775 ​ $ 410,162 ​ $ 500,734 ​ $ 34,563 ​ $ 2,065,692 YTD gross charge-offs ​ $ — ​ $ 41 ​ $ — ​ $ — ​ $ 1 ​ $ 999 ​ $ — ​ $ 1,041 ​ 17 Table of Contents The following tables provide an aging of the Company’s loans receivable as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ investments ​ ​ 30–59 Days ​ 60–89 Days ​ or more ​ Total ​ ​ ​ ​ ​ ​ ​ Total loans ​ 90 days or more past due ​ ​ past due ​ past due ​ past due ​ past due ​ Current ​ PCD loans ​ receivable ​ and still accruing March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 380 ​ $ 392 ​ $ 704 ​ $ 1,476 ​ $ 165,835 ​ $ — ​ $ 167,311 ​ $ — Construction and land ​ — ​ — ​ — ​ — ​ 10,137 ​ — ​ 10,137 ​ — Commercial real estate ​ 1,636 ​ 6,851 ​ 1,951 ​ 10,438 ​ 1,697,606 ​ 12,495 ​ 1,720,539 ​ — Residential ​ 57 ​ — ​ ​ 685 ​ 742 ​ 110,701 ​ 32 ​ 111,475 ​ — Consumer ​ — ​ — ​ — ​ — ​ 1,292 ​ — ​ 1,292 ​ — Total ​ $ 2,073 ​ $ 7,243 ​ $ 3,340 ​ $ 12,656 ​ $ 1,985,571 ​ $ 12,527 ​ $ 2,010,754 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recorded ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ investments ​ ​ 30–59 Days ​ 60–89 Days ​ or more ​ Total ​ ​ ​ ​ ​ ​ ​ Total loans ​ 90 days or more past due ​ ​ past due ​ past due ​ past due ​ past due ​ Current ​ PCD loans ​ receivable ​ and still accruing December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 671 ​ $ 119 ​ $ 748 ​ $ 1,538 ​ $ 173,871 ​ $ — ​ $ 175,409 ​ $ — Construction and land ​ — ​ — ​ — ​ — ​ 8,958 ​ — ​ 8,958 ​ — Commercial real estate ​ 818 ​ — ​ 1,942 ​ 2,760 ​ 1,747,458 ​ 16,746 ​ 1,766,964 ​ — Residential ​ 40 ​ — ​ ​ 711 ​ 751 ​ 112,393 ​ 42 ​ 113,186 ​ — Consumer ​ 1 ​ — ​ — ​ 1 ​ 1,174 ​ — ​ 1,175 ​ — Total ​ $ 1,530 ​ $ 119 ​ $ 3,401 ​ $ 5,050 ​ $ 2,043,854 ​ $ 16,788 ​ $ 2,065,692 ​ $ — ​ Nonaccrual loans totaled $ 16.7 million and $ 13.4 million at March 31, 2026 and December 31, 2025, respectively. Nonaccrual loans guaranteed by a government agency, which reduces the Company’s credit exposure, were $ 932,000 at March 31, 2026 compared to $ 1.7 million at December 31, 2025. At March 31, 2026, nonaccrual loans included $ 7.1 million of loans 30-89 days past due and $ 6.3 million of loans less than 30 days past due. At December 31, 2025, nonaccrual loans included $ 562,000 of loans 30-89 days past due and $ 9.4 million of loans less than 30 days past due. The increase from the prior quarter-end was primarily due to one $ 4.9 million commercial real estate loan being placed on nonaccrual during the current quarter, partially offset by payoffs of five nonaccrual loans totaling $ 1.6 million. The increase in nonaccrual loans reflects borrower-specific credit deterioration, primarily within the commercial and industrial and commercial real estate portfolios. ​ At March 31, 2026, the $ 7.1 million of nonaccrual loans 30-89 days past due were comprised of four loans and the $ 6.3 million of loans less than 30 days past due were comprised of 15 loans. All these loans were placed on nonaccrual due to concerns over the financial condition of the borrowers. ​ At March 31, 2026 and December 31, 2025, there were no loans 90 days or more past due and still accruing. ​ Interest foregone on nonaccrual loans was approximately $ 200,000 for the three months ended March 31, 2026, compared to $ 269,000 for the three months ended March 31, 2025. Interest income recognized on nonaccrual loans was approximately $ 140,000 for the three months ended March 31, 2026, compared to $ 35,000 for the three months ended March 31, 2025. ​ Pledged Loans The Bank’s FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $ 1.13 billion and $ 1.10 billion at March 31, 2026 and December 31, 18 Table of Contents 2025, respectively. For additional information, see “Note 11 - Borrowings” of the Notes to Condensed Consolidated Financial Statements. ​ ​ ​ NOTE 5 – ALLOWANCE FOR CREDIT LOSSES FOR LOANS The following tables summarize the Company’s allowance for credit losses for loans, reserve for unfunded commitments, and loan balances individually and collectively evaluated by type of loan, as of the dates and for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ Construction ​ Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reserve for ​ ​ ​ ​ and industrial ​ ​ ​ and land ​ ​ ​ real estate ​ ​ ​ Residential ​ ​ ​ Consumer ​ ​ ​ Total ​ ​ ​ unfunded commitments Three months ended March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 4,173 ​ $ 470 ​ $ 14,601 ​ $ 1,957 ​ $ 9 ​ $ 21,210 ​ $ 410 Charge-offs ​ — ​ — ​ ( 16 ) ​ — ​ ( 1 ) ​ ( 17 ) ​ — Recoveries ​ 2 ​ — ​ — ​ — ​ — ​ 2 ​ — (Reversal of) provision for credit losses ​ ​ ( 92 ) ​ ​ 57 ​ ​ ( 529 ) ​ ​ ( 35 ) ​ ​ 4 ​ ( 595 ) ​ ​ ( 75 ) Ending balance ​ $ 4,083 ​ $ 527 ​ $ 14,056 ​ $ 1,922 ​ $ 12 ​ $ 20,600 ​ $ 335 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans individually evaluated ​ $ — ​ $ — ​ $ 1,346 ​ $ — ​ $ — ​ $ 1,346 ​ ​ ​ Loans collectively evaluated ​ 4,083 ​ 527 ​ 12,456 ​ 1,921 ​ 12 ​ 18,999 ​ ​ ​ PCD loans ​ — ​ — ​ 254 ​ 1 ​ — ​ 255 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated ​ $ — ​ $ — ​ $ 14,458 ​ $ 685 ​ $ — ​ $ 15,143 ​ ​ ​ Collectively evaluated ​ 167,311 ​ 10,137 ​ 1,693,586 ​ 110,758 ​ 1,292 ​ 1,983,084 ​ ​ ​ PCD loans ​ — ​ — ​ 12,495 ​ 32 ​ — ​ 12,527 ​ ​ ​ Total loans ​ $ 167,311 ​ $ 10,137 ​ $ 1,720,539 ​ $ 111,475 ​ $ 1,292 ​ $ 2,010,754 ​ ​ ​ ​ ​ 19 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ Construction ​ Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reserve for ​ ​ ​ ​ and industrial ​ ​ ​ and land ​ ​ ​ real estate ​ ​ ​ Residential ​ ​ ​ Consumer ​ Total ​ ​ ​ unfunded commitments Three months ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 4,681 ​ $ 72 ​ $ 11,365 ​ $ 1,780 ​ $ 2 ​ $ 17,900 ​ $ 600 Charge-offs ​ ( 100 ) ​ ​ — ​ ​ — ​ ​ ( 1 ) ​ ​ ( 5 ) ​ ​ ( 106 ) ​ ​ — Recoveries ​ 2 ​ — ​ ​ — ​ 1 ​ ​ 1 ​ 4 ​ — Provision for (reversal of) credit losses ​ 367 ​ ( 51 ) ​ 496 ​ ( 118 ) ​ 8 ​ 702 ​ ( 60 ) Ending balance ​ $ 4,950 ​ 21 ​ 11,861 ​ 1,662 ​ 6 ​ 18,500 ​ 540 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans individually evaluated ​ $ 704 ​ $ — ​ $ 596 ​ $ — ​ $ — ​ $ 1,300 ​ ​ ​ Loans collectively evaluated ​ 4,246 ​ 21 ​ 10,988 ​ 1,660 ​ 6 ​ 16,921 ​ ​ ​ PCD loans ​ — ​ — ​ 277 ​ 2 ​ — ​ 279 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans receivable: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated ​ $ 1,272 ​ $ — ​ $ 15,781 ​ $ 972 ​ $ — ​ $ 18,025 ​ ​ ​ Collectively evaluated ​ 178,131 ​ 476 ​ 1,642,372 ​ 106,091 ​ 534 ​ 1,927,604 ​ ​ ​ PCD loans ​ — ​ 1 ​ 20,507 ​ 208 ​ — ​ 20,716 ​ ​ ​ Total loans ​ $ 179,403 ​ $ 477 ​ $ 1,678,660 ​ $ 107,271 ​ $ 534 ​ $ 1,966,345 ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2026, the reversal of provision for credit losses and the related decrease in the allowance for credit losses at March 31, 2026, compared to December 31, 2025, was primarily attributable to a decrease in the reserve for pooled loans due to lower loan balances, partially offset by changes in macroeconomic forecasts, including lower forecasted unemployment and an improved national gross domestic product outlook. In addition, there was an $ 82,000 decrease in the reserve for individually evaluated loans as compared to the prior quarter. Qualitative risk factor classifications remained unchanged during the quarter. Net charge-offs were $ 15,000 for the first quarter of 2026, compared to $ 102,000 for the same period in 2025. The following table summarizes the amortized cost basis of individually evaluated collateral-dependent loans, including nonaccrual loans, modified loans to borrowers experiencing financial difficulty, and accreting purchase credit deteriorated (“PCD”) loans that have experienced post-acquisition declines in cash flows expected to be collected, by loan and collateral type as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Office ​ ​ ​ Hotel ​ ​ ​ Other ​ SFR 1-4 ​ ​ ​ Total ​ ​ ​ ACL March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ $ 8,240 ​ $ 5,489 ​ $ 729 ​ $ — ​ $ 14,458 ​ $ 1,346 Residential ​ — ​ ​ — ​ ​ — ​ ​ 685 ​ ​ 685 ​ — Total ​ $ 8,240 ​ $ 5,489 ​ $ 729 ​ $ 685 ​ $ 15,143 ​ $ 1,346 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ $ 3,338 ​ $ 9,462 ​ $ 1,352 ​ $ — ​ $ 14,152 ​ $ 1,428 Residential ​ — ​ ​ — ​ ​ — ​ ​ 711 ​ ​ 711 ​ — Total ​ $ 3,338 ​ $ 9,462 ​ $ 1,352 ​ $ 711 ​ $ 14,863 ​ $ 1,428 ​ ​ 20 Table of Contents The following table shows the amortized cost and allowance for credit losses for loans on nonaccrual status as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2026 ​ As of December 31, 2025 ​ ​ Nonaccrual ​ Nonaccrual ​ ​ ​ Nonaccrual ​ Nonaccrual ​ ​ ​ ​ with no allowance ​ with allowance ​ Total ​ with no allowance ​ with allowance ​ Total ​ ​ ​ ​ for credit losses ​ ​ ​ for credit losses ​ ​ ​ nonaccrual ​ ​ ​ for credit losses ​ ​ ​ for credit losses ​ ​ ​ nonaccrual Commercial and industrial $ — ​ $ 895 ​ $ 895 ​ $ — ​ $ 839 ​ $ 839 Commercial real estate ​ ​ 10,063 ​ 5,036 ​ ​ 15,099 ​ 5,891 ​ 5,997 ​ ​ 11,888 Residential ​ 685 ​ 2 ​ ​ 687 ​ ​ 711 ​ 5 ​ ​ 716 Total ​ $ 10,748 ​ $ 5,933 ​ $ 16,681 ​ $ 6,602 ​ $ 6,841 ​ $ 13,443 ​ As part of its acquisition of Pacific Enterprise Bancorp (“PEB”) in 2022, the Company acquired certain small business loans to borrowers qualified under The California Capital Access Program for Small Business, a state guaranteed loan program sponsored by the California Pollution Control Financing Authority (“CalCAP”). PEB ceased originating loans under this loan program in 2017. Under this loan program, the borrower, CalCAP and the participating lender contributed funds to a loss reserve account held in a demand deposit account at the participating lender. The borrower’s contributions to the loss reserve account are attributed to the participating lender. Losses on qualified loans are charged to this account after approval by CalCAP. Under the program, if a loan defaults, the participating lender has immediate coverage of 100 % of the loss. The participating lender must return recoveries from the borrower, less expenses, to the credit loss reserve account. The funds in the loss reserve account are the property of CalCAP; however, in the event that the participating lender leaves the program any excess funds, after all loans have been repaid or unenrolled from the program by the participating lender and provided there are no pending claims for reimbursement, the remaining excess funds are distributed to CalCAP and the participating lender based on their respective contributions to the loss reserve account. Funds contributed by the participating lender to the loss reserve account are treated as a receivable from CalCAP and evaluated for impairment quarterly. As of March 31, 2026 and December 31, 2025, the Company had $ 5.8 million and $ 9.3 million, respectively, of loans enrolled in this loan program. The Company had a loss reserve account of $ 4.8 million and $ 4.9 million as of March 31, 2026 and December 31, 2025, respectively. ​ In addition, as successor to PEB, the Company was approved by CalCAP, in partnership with the California Air Resources Board, to originate loans to California truckers in the On-Road Heavy-Duty Vehicle Air Quality Loan Program. Under this loan program, CalCAP solely contributes funds to a loss reserve account held in a demand deposit account at the participating lender. Losses are handled in the same manner as described above. The funds are the property of CalCAP and are payable upon termination of the program. When the loss reserve account balance exceeds the total associated loan balance, the excess is to be remitted to CalCAP. The Company originated loans under this program of $ 295,000 and $ 3.4 million during the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the Company had $ 15.5 million of loans enrolled in this program and a loss reserve account of $ 4.8 million. As of December 31, 2025, the Company had $ 19.0 million of loans enrolled in this program and a loss reserve account of $ 4.9 million. ​ ​ ​ ​ ​ ​ ​ ​ NOTE 6 – PREMISES AND EQUIPMENT Premises and equipment consisted of the following at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Premises owned ​ $ 11,646 ​ $ 11,570 Leasehold improvements ​ 4,078 ​ 4,268 Furniture, fixtures and equipment ​ 11,087 ​ 10,690 Less accumulated depreciation and amortization ​ ( 13,775 ) ​ ( 13,308 ) Total premises and equipment, net ​ $ 13,036 ​ $ 13,220 ​ Depreciation and amortization included in occupancy and equipment expense totaled $ 486,000 and $ 470,000 for the three months ended March 31, 2026, and 2025, respectively. ​ 21 Table of Contents NOTE 7 – LEASES The Company leased 19 branches under noncancelable operating leases as of March 31, 2026. These leases expire on various dates through 2030. Many of these lease agreements include one or more renewal options, exercisable at the Company’s discretion. When the Company determines at lease commencement that it is reasonably certain to exercise a renewal option, the extended lease term is included in the measurement of the ROU asset and corresponding lease liability. ​ The Company uses the discount rate implicit in the lease when it is readily determinable. In instances where the implicit rate is not available, which is typically the case, the Company applies its incremental borrowing rate, determined on a collateralized basis and over a term comparable to the lease term, as of the lease commencement date. ​ The below maturity schedule presents, as of March 31, 2026, the undiscounted lease payments for the next five years and thereafter: ​ ​ ​ ​ ​ For remainder of 2026 ​ $ 2,855 2027 ​ ​ 3,934 2028 ​ 3,883 2029 ​ 3,443 2030 ​ ​ 1,415 Thereafter ​ 527 Total undiscounted cash flows ​ ​ 16,057 Less: interest ​ ​ ( 1,489 ) Present value of lease payments ​ $ 14,568 ​ The following table presents the weighted average lease term and discount rate at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ December 31, 2025 Weighted-average remaining lease term 4.2 years ​ 4.1 years Weighted-average discount rate 3.9 % ​ 3.9 % ​ The following table presents certain information related to the operating lease costs included in occupancy and equipment expense on the Condensed Consolidated Statements of Income for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ ​ March 31, ​ ​ 2026 ​ 2025 Operating lease cost ​ $ 966 ​ $ 1,046 Short-term lease cost ​ — ​ — Less: Sublease income ​ ( 13 ) ​ ( 25 ) Total operating lease cost, net ​ $ 953 ​ $ 1,021 ​ ​ ​ NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and the liabilities assumed as of the acquisition date. Goodwill and other intangible assets are assessed for impairment annually or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible represents the estimated future benefit of deposits related to an acquisition and is booked separately from the related deposits and amortized over an estimated useful life of seven to ten years . ​ ​ 22 Table of Contents Goodwill The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or between annual assessments if a triggering event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Impairment exists when a reporting unit’s fair value is less than its carrying amount, including goodwill. Changes in the Company's goodwill during the periods indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months Ended ​ Year ended ​ ​ March 31, 2026 ​ December 31, 2025 Balance at beginning of period ​ $ 38,838 ​ $ 38,838 Acquired goodwill ​ — ​ — Impairment ​ — ​ — Balance at end of period ​ $ 38,838 ​ $ 38,838 ​ Core Deposit Intangible Changes in the Company’s core deposit intangible during the periods indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Year ended ​ ​ March 31, 2026 ​ December 31, 2025 Balance at beginning of period ​ $ 1,745 ​ $ 2,693 Additions ​ — ​ — Less amortization ​ ( 114 ) ​ ( 948 ) Balance at end of period ​ $ 1,631 ​ $ 1,745 ​ Estimated annual amortization expense at March 31, 2026 was as follows: ​ ​ ​ ​ ​ For remainder of 2026 ​ $ 341 2027 ​ ​ 455 2028 ​ 455 2029 ​ ​ 372 Thereafter ​ 8 Total ​ $ 1,631 ​ ​ ​ NOTE 9 – INTEREST RECEIVABLE AND OTHER ASSETS The Company’s interest receivable and other assets at the dates indicated consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Tax assets, net ​ $ 13,030 ​ $ 13,684 Accrued interest receivable ​ 8,553 ​ 8,344 Investment in SBIC fund ​ 3,049 ​ 2,963 Investment in Community Reinvestment Act fund ​ ​ 2,000 ​ ​ 2,000 Prepaid assets ​ 2,177 ​ 2,254 Servicing assets ​ 352 ​ 388 Investment in Low Income Housing Tax Credit ("LIHTC") partnerships, net ​ 4,196 ​ 3,290 Investment in statutory trusts ​ 373 ​ 550 CalCAP reserve receivable ​ ​ 1,375 ​ ​ 1,375 Other assets ​ 3,782 ​ 3,544 Total interest receivable and other assets ​ $ 38,887 ​ $ 38,392 ​ ​ ​ 23 Table of Contents ​ NOTE 10 – DEPOSITS The Company’s deposits at the dates indicated consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Demand deposits (1) ​ $ 609,226 ​ $ 578,068 NOW accounts ​ 251,401 ​ 264,967 Savings ​ ​ 72,071 ​ ​ 71,166 Money market ​ 745,570 ​ 732,256 Time deposits ​ 587,122 ​ 567,183 Total ​ $ 2,265,390 ​ $ 2,213,640 (1) Noninterest bearing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits included no brokered deposits as of March 31, 2026, and December 31, 2025. At March 31, 2026, uninsured deposits totaled $ 1.0 billion, or 46.3 % of total deposits, compared to $ 1.0 billion, or 46.6 % of total deposits at December 31, 2025. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements. ​ NOTE 11 – BORROWINGS Other borrowings – The Bank has an approved secured borrowing facility with the Federal Home Loan Bank of San Francisco (the “FHLB”) for up to 25 % of total assets for a term not to exceed five years under a blanket lien of certain types of loans. At March 31, 2026 and December 31, 2025, the Bank had the ability to borrow up to $ 599.3 million and $ 580.7 million, respectively, from the FHLB of San Francisco. At both March 31, 2026 and December 31, 2025, the Bank had no FHLB borrowings outstanding. ​ The Bank has been approved for discount window advances from the FRB of San Francisco secured by certain types of loans. At March 31, 2026 and December 31, 2025, the Bank had the ability to borrow up to $ 43.4 million and $ 49.3 million, respectively, from the FRB of San Francisco. At both March 31, 2026 and December 31, 2025, the Bank had no FRB of San Francisco advances outstanding. ​ The Bank has Federal Funds lines with four correspondent banks. Cumulative available commitments totaled $ 65.0 million at both March 31, 2026 and December 31, 2025. There were no amounts outstanding under these facilities at both March 31, 2026 and December 31, 2025. Junior subordinated deferrable interest debentures – In connection with its previous acquisitions, the Company assumed junior subordinated deferrable interest debentures, totaling $ 5.9 million, net of fair value adjustments, with a weighted average rate of 6.44 % at March 31, 2026, compared to $ 8.7 million, net of fair value adjustments, with a weighted average rate of 6.56 % at December 31, 2025 . The decrease in amount of debentures reflects the Company’s redemption of one junior subordinated debenture during the first quarter of 2026, which included $ 222,000 of accelerated amortized debt issuance costs. The junior subordinated deferrable interest debentures mature in 2034, subject to earlier redemption by the Company at its option. Subordinated debt –On August 10, 2020, the Company issued and sold $ 65.0 million aggregate principal amount of 5.25 % Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”) at a public offering price equal to 100 % of the aggregate principal amount of the Notes. During the third quarter of 2025, the Company redeemed all the outstanding Notes. At both March 31, 2026 and December 31, 2025, the Company had no outstanding Notes. 24 Table of Contents ​ NOTE 12 – INTEREST PAYABLE AND OTHER LIABILITIES The Company’s interest payable and other liabilities at the dates indicated consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Accrued expenses ​ $ 7,340 ​ $ 9,608 Accounts payable ​ 456 ​ 504 Reserve for unfunded commitments ​ 335 ​ 410 Accrued interest payable ​ 2,068 ​ 1,831 Other liabilities ​ 3,243 ​ 1,623 Total ​ $ 13,442 ​ $ 13,976 ​ ​ ​ ​ ​ ​ ​ NOTE 13 – OTHER EXPENSES ​ The Company’s other expenses for the periods indicated consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ ​ ​ March 31, ​ ​ ​ ​ ​ 2026 ​ 2025 ​ Professional fees ​ $ 506 ​ $ 536 ​ Core deposit premium amortization ​ 114 ​ 263 ​ Marketing and promotions ​ 144 ​ 157 ​ Stationery and supplies ​ 60 ​ 66 ​ Insurance (including FDIC premiums) ​ 391 ​ 373 ​ Communication and postage ​ 230 ​ 258 ​ Loan default related (recoveries) expense ​ ( 346 ) ​ ( 12 ) ​ Director fees and expenses ​ 79 ​ 68 ​ Bank service charges ​ 17 ​ 17 ​ Courier expense ​ 169 ​ 172 ​ Other ​ 128 ​ 167 ​ Total ​ $ 1,492 ​ $ 2,065 ​ ​ The Company expenses marketing and promotion costs as they are incurred. Advertising expense included in marketing and promotions totaled $ 17,000 and $ 5,000 for the three months ended March 31, 2026 and 2025, respectively. ​ ​ NOTE 14 – EQUITY INCENTIVE PLANS Equity Incentive Plans 2024 Omnibus Equity Incentive Plan The Company’s shareholders approved the Company’s 2024 Omnibus Equity Incentive Plan (“2024 Plan”) in June 2024. The 2024 Plan provides for the grant of equity incentive awards to employees and directors (including emeritus and advisory directors) of the Company and its subsidiaries. The 2024 Plan permits the granting of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance shares and performance units. Factors generally considered by the Board in awarding equity incentives to employees include the performance of the Company, the employee’s job performance, the importance of his or her position, and his or her contribution to the organization’s goals for the award period. Generally, awards under the 2024 Plan are subject to a minimum vesting period of one year (at least three years for full vesting for the chief executive officer), provided that awards for up to 5 % of the maximum shares available under the 2024 Plan (for any participant other than the chief executive officer) may provide for a shorter vesting period. 25 Table of Contents Subject to adjustment as provided in the 2024 Plan, the maximum number of shares of common stock available for issuance under the 2024 Plan is 500,000 , and awards granted under the 2024 Plan to any one participant in any one calendar year are subject to the following limitations: (i) aggregate grants of stock options or stock appreciation rights to any one participant are subject to an annual limit of the lesser of 100,000 shares or $ 2.0 million in fair market value as of the date of grant; (ii) aggregate grants of restricted stock or restricted stock units to any one participant are subject to an annual limit of the lesser of 50,000 shares or $ 2.0 million in fair market value as of the date of grant; and (iii) aggregate grants of performance shares or performance units to any one participant are subject to an annual limit of the lesser of 50,000 shares or $ 2.0 million in fair market value as of the date of grant. In addition, subject to adjustment as provided in the 2024 Plan, the maximum aggregate number of shares that may be covered by awards granted under the 2024 Plan to any non-employee director in any one calendar year is 25,000 shares. As of March 31, 2026, a total of 442,542 shares were available for future issuance under the 2024 Plan. ​ 2017 Omnibus Equity Incentive Plan The Company’s shareholders approved the Company’s 2017 Omnibus Equity Incentive Plan (“2017 Plan”) in November 2017. The 2017 Plan provides for the awarding by the Company’s Board of Directors of equity incentive awards to employees and non-employee directors. An equity incentive award under the 2017 Plan may be an option, stock appreciation right, restricted stock units, stock award, other stock-based award or performance award. Factors considered by the Board in awarding equity incentives to employees include the performance of the Company, the employee’s job performance, the importance of his or her position, and his or her contribution to the organization’s goals for the award period. Generally, awards have a vesting period of one to five years . Subject to adjustment as provided in the 2017 Plan, the maximum number of shares of common stock that may be delivered pursuant to awards granted under the 2017 Plan is 450,000 . The 2017 Plan provides for annual restricted stock grant limits to officers, employees and directors. The annual stock grant limit per person for officers and employees is the lesser of 50,000 shares or a value of $ 2.0 million, and per person for directors, the maximum is 25,000 shares. All unvested restricted shares outstanding vest in the event of a change in control of the Company. Restricted stock awards granted to non-employee directors generally vest one year from the date of grant. Awards to executive officers typically vest over three - or five-year periods, with initial vesting occurring on the one-year anniversary of the grant date. As of March 31, 2026, no shares remained available for issuance under the 2017 Plan, as the approval of the 2024 Plan by shareholders terminated the ability to grant further awards under the 2017 Plan. The following table provides the restricted stock grant activity for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average ​ ​ ​ ​ ​ ​ ​ Weighted-average ​ ​ ​ ​ grant date ​ ​ ​ grant date ​ ​ Shares ​ fair value ​ Shares ​ fair value Non-vested at January 1, 73,645 ​ $ 22.82 ​ 74,346 ​ $ 20.11 ​ Granted 21,636 ​ 28.82 ​ 22,221 ​ 26.20 ​ Vested ( 21,582 ) ​ 20.43 ​ ( 20,568 ) ​ 20.20 ​ Forfeited ​ — ​ ​ — ​ ( 3,221 ) ​ ​ 24.98 ​ Non-vested, at March 31, 73,699 ​ ​ 25.28 ​ 72,778 ​ ​ 21.73 ​ ​ ​ NOTE 15 – FAIR VALUE MEASUREMENT ASC Topic 820, “Fair Value Measurement,” defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities, as follows: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date. 26 Table of Contents Level 2 – Observable prices in active markets for similar assets and 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 for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily securities AFS. 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 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 to record impairment on certain assets, such as goodwill, core deposit intangible, and other long-lived assets. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. There were no transfers between levels during the three months ended March 31, 2026 and 2025. At both March 31, 2026 and December 31, 2025, there were no liabilities measured at fair value on a recurring or non-recurring basis. The following assets were measured at fair value on a recurring basis as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Estimated ​ ​ ​ Fair Value Measurements ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 25,065 ​ $ — ​ $ 25,065 ​ $ — Mortgage-backed securities ​ ​ 58,544 ​ ​ — ​ ​ 58,544 ​ ​ — Collateralized mortgage obligations ​ 42,903 ​ — ​ 42,903 ​ — SBA securities ​ 2,577 ​ — ​ 2,577 ​ — ABS securities ​ 1,604 ​ — ​ 1,604 ​ — Corporate bonds ​ 58,739 ​ — ​ 58,739 ​ — Equity securities ​ ​ 12,613 ​ ​ 12,613 ​ ​ — ​ ​ — Total ​ $ 202,045 ​ $ 12,613 ​ $ 189,432 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Estimated ​ ​ ​ Fair Value Measurements ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ Municipal securities ​ $ 25,634 ​ $ — ​ $ 25,634 ​ $ — Mortgage-backed securities ​ ​ 45,678 ​ ​ — ​ ​ 45,678 ​ ​ — Collateralized mortgage obligations ​ 44,144 ​ — ​ 44,144 ​ — SBA securities ​ 2,748 ​ — ​ 2,748 ​ — ABS securities ​ 1,671 ​ — ​ 1,671 ​ — Corporate bonds ​ 59,833 ​ — ​ 59,833 ​ — Equity securities ​ ​ 12,554 ​ ​ 12,554 ​ ​ — ​ ​ — Total ​ $ 192,262 ​ $ 12,554 ​ $ 179,708 ​ $ — ​ ​ 27 Table of Contents The following assets were measured at fair value on a nonrecurring basis as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ ​ ​ Total Estimated ​ ​ ​ Fair Value Measurements Individually evaluated loans ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ $ 4,425 ​ $ — ​ $ — ​ $ 4,425 Total ​ $ 4,425 ​ $ — ​ $ — ​ $ 4,425 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ Total Estimated ​ ​ ​ Fair Value Measurements Individually evaluated loans ​ Fair Value ​ Level 1 ​ Level 2 ​ Level 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial real estate ​ $ 4,493 ​ $ — ​ $ — ​ $ 4,493 Total ​ $ 4,493 ​ $ — ​ $ — ​ $ 4,493 ​ ​ The Company does not record loans at fair value on a recurring basis. However, from time to time, certain loans have individual risk characteristics not consistent with a pool of loans and are individually evaluated for credit reserves. Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are typically individually evaluated. The fair value of individually evaluated loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise and liquidation value and discounted cash flows. Those individually evaluated loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the individually evaluated loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is less than the appraised value or the appraised value contains a significant assumption and there is no observable market price, the Company records the individually evaluated loan as nonrecurring Level 3. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also incorporates assumptions regarding market trends or other relevant factors and selling and commission costs ranging from 5 % to 10 % . Such adjustments and assumptions are typically significant and result in a Level 3 classification of the inputs for determining fair value. ​ ​ ​ ​ 28 Table of Contents NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and fair values of the Company’s financial instruments at the dates indicated are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ Fair ​ Fair value measurements ​ ​ ​ ​ amount ​ ​ ​ value ​ ​ ​ Level 1 ​ ​ ​ Level 2 ​ ​ ​ Level 3 March 31, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 305,904 ​ $ 305,904 ​ $ 305,904 ​ $ — ​ $ — Investment securities AFS ​ 189,432 ​ 189,432 ​ — ​ 189,432 ​ — Equity securities ​ ​ 12,613 ​ ​ 12,613 ​ ​ 12,613 ​ ​ — ​ ​ — Investment in FHLB and FRB Stock ​ 19,251 ​ 19,251 ​ — ​ 19,251 ​ — Loans held for sale ​ 125 ​ 125 ​ — ​ 125 ​ — Loans, net ​ 1,990,682 ​ 1,966,342 ​ — ​ — ​ 1,966,342 Accrued interest receivable ​ 8,553 ​ 8,553 ​ — ​ 8,553 ​ — Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 2,265,390 ​ 2,272,694 ​ — ​ 2,272,694 ​ — Junior subordinated deferrable interest debentures, net ​ ​ 5,874 ​ ​ 5,832 ​ ​ — ​ ​ — ​ ​ 5,832 Accrued interest payable ​ 2,068 ​ 2,068 ​ — ​ 2,068 ​ — Off-balance sheet liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undisbursed loan commitments, lines of credit, standby letters of credit ​ 65,409 ​ 65,074 ​ — ​ — ​ 65,074 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying ​ Fair ​ Fair value measurements ​ ​ ​ ​ amount ​ ​ ​ value ​ ​ ​ Level 1 ​ ​ ​ Level 2 ​ ​ ​ Level 3 December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 206,514 ​ $ 206,514 ​ $ 206,514 ​ $ — ​ $ — Investment securities AFS ​ 179,708 ​ 179,708 ​ — ​ 179,708 ​ — Equity securities ​ 12,554 ​ ​ 12,554 ​ ​ 12,554 ​ ​ — ​ ​ — Investment in FHLB and FRB Stock ​ ​ 19,246 ​ 19,246 ​ — ​ 19,246 ​ — Loans held for sale ​ 1,316 ​ 1,316 ​ — ​ 1,316 ​ — Loans, net ​ 2,045,126 ​ 2,020,591 ​ — ​ — ​ 2,020,591 Accrued interest receivable ​ 8,344 ​ 8,344 ​ — ​ 8,344 ​ — Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 2,213,640 ​ 2,221,521 ​ — ​ 2,221,521 ​ — Junior subordinated deferrable interest debentures, net ​ 8,726 ​ ​ 8,579 ​ ​ — ​ ​ — ​ ​ 8,579 Accrued interest payable ​ 1,831 ​ 1,831 ​ — ​ 1,831 ​ — Off-balance sheet liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undisbursed loan commitments, lines of credit, standby letters of credit ​ 67,537 ​ 67,127 ​ — ​ — ​ 67,127 ​ ​ ​ NOTE 17 – COMMITMENTS AND CONTINGENCIES Lending and Letter of Credit Commitments The Company operates in a highly regulated environment. From time to time, the Company is a party to various claims and litigation matters incidental to the conduct of its business. The Company is not presently party to any legal proceedings where it believes the resolution would have a material adverse effect on its business, financial condition, or results of operations. 29 Table of Contents Nevertheless, given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to the Company’s business (including laws and regulations governing consumer protection, fair lending, fair labor, privacy, information security and anti-money laundering and anti-terrorism laws), the Company, like all banking organizations, is subject to heightened legal and regulatory compliance and litigation risk. In the normal course of business, the Company enters into various commitments to extend credit which are not reflected in the financial statements. These commitments consist of the undisbursed balance on home equity and unsecured personal lines of credit and commercial lines of credit, including commercial real estate secured lines of credit, and undisbursed funds on construction and development loans. The Company also issues standby letter of credit commitments, primarily for the third-party performance obligations of clients. The following table presents a summary of commitments described above as of the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ 2026 ​ 2025 Commitments to extend credit ​ $ 64,735 ​ $ 67,060 Standby letters of credit ​ 674 ​ 477 Total commitments ​ $ 65,409 ​ $ 67,537 ​ Commitments generally have fixed expiration dates or other termination clauses. The actual liquidity needs or the credit risk that the Company will experience will likely be lower than the contractual amount of commitments to extend credit because a significant portion of these commitments are expected to expire without being drawn upon. The commitments are generally variable rate and include unfunded home equity lines of credit, commercial real estate construction loans where disbursement is made over the course of construction, commercial revolving lines of credit, and unsecured personal lines of credit. The Company’s outstanding loan commitments are made using the same underwriting standards as comparable outstanding loans. The reserve associated with these commitments included in interest payable and other liabilities on the consolidated balance sheets was $ 335,000 at March 31, 2026 and $ 410,000 at December 31, 2025. Commercial Real Estate Concentrations At March 31, 2026 and December 31, 2025, in management’s judgment, a concentration of loans existed in commercial real estate related loans. The Company’s commercial real estate loans are secured by owner-occupied and non-owner occupied commercial real estate and multifamily properties. Although management believes that loans within these concentrations have no more than the normal risk of collectability, a decline in the performance of the economy in general, or a decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on collectability . Other Assets The Company has commitments to fund investments in LIHTC partnerships and an SBIC fund. At March 31, 2026, the remaining commitments to the LIHTC partnerships and the SBIC fund were approximately $ 3.5 million and $ 122,000 , respectively. At December 31, 2025, the remaining commitments to the LIHTC partnerships and the SBIC fund were approximately $ 4.7 million and $ 122,000 , respectively. Deposit Concentrations At March 31, 2026, approximately $ 298.5 million, or 13.2 %, of the Company's deposits were derived from its top ten depositors. At December 31, 2025, approximately $ 235.8 million, or 11.7 %, of the Company's deposits were derived from its top ten depositors. Local Agency Deposits and Other Advances In the normal course of business, the Company accepts deposits from local agencies. The Company is required to provide collateral for certain local agency deposits in the states of California, Colorado, New Mexico and Washington. At March 31, 2026 and December 31, 2025, the FHLB had issued letters of credit on behalf of the Company totaling $ 42.1 million and $ 41.6 million, respectively, as collateral for local agency deposits. 30 Table of Contents ​ NOTE 18 – SEGMENT INFORMATION The Company operates as one reportable segment: banking operations. The Company’s banking operations generate revenue primarily from loans and securities, deposits, and non-interest income. Loan products generate a significant portion of interest and fee income, while deposit products provide fee and service charge income. The Company also earns interest and dividend income from securities and generates net gains from the sale of loans to third parties. Interest expense, provisions for credit losses, salaries and employee benefits, data processing, and occupancy expense typically represent the significant expenses in banking operations. These expenses align with those reported in the Company’s Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows. Noncash items, such as depreciation and amortization, are also reflected in both the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Cash Flows. ​ The Company’s Chief Operating Decision Maker (CODM) is identified as the Chief Executive Officer, who is responsible for assessing the financial performance of the Company and allocating resources accordingly. The CODM is provided with consolidated balance sheets, income statements, and net interest margin analyses in order to evaluate revenue streams, significant expenses, and budget-to-actual results in assessing the Company’s segment and determining the allocation of resources, as well as evaluating return on assets. In addition, the CODM utilizes consolidated net income, return on assets, and net interest margin as benchmarks to compare the Company’s performance against competitors. All operations are domestic and align with a single operating segment. Information reported internally for performance assessment by the CODM is identical to that shown in the Condensed Consolidated Statements of Income. ​ The following table presents the Company’s one operating segment for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ ​ ​ ​ Interest and dividend income $ 34,550 ​ $ 32,646 ​ ​ ​ ​ ​ ​ ​ Reconciliation of revenue: ​ ​ ​ ​ ​ ​ Other revenues ​ ​ 1,545 ​ ​ 1,440 Total consolidated revenue ​ ​ 36,095 ​ ​ 34,086 ​ ​ ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ ​ ​ Interest expense ​ ​ 9,354 ​ ​ 9,766 Segment net interest income and noninterest income ​ ​ 26,741 ​ ​ 24,320 Less: ​ ​ ​ ​ ​ ​ (Reversal of) provision for credit losses ​ ​ ( 670 ) ​ ​ 642 Salaries and employee benefits ​ ​ 10,849 ​ ​ 9,935 Occupancy and equipment ​ ​ 2,127 ​ ​ 2,136 Data processing ​ ​ 2,038 ​ ​ 1,853 Other segment items ​ ​ 1,492 ​ ​ 2,065 Provision for income taxes ​ ​ 2,725 ​ ​ 1,987 Segment net income/consolidated net income ​ $ 8,180 ​ $ 5,702 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ ​ 2026 ​ ​ 2025 Reconciliation of assets: ​ ​ ​ ​ ​ ​ Total assets for reportable segment ​ $ 2,648,536 ​ $ 2,593,677 Other assets ​ ​ — ​ ​ — Total consolidated assets ​ $ 2,648,536 ​ $ 2,593,677 31 Table of Contents ​ ​ NOTE 19 – SUBSEQUENT EVENTS Subsequent to quarter-end, the Company announced an executive leadership transition to support the Company’s next phase of growth, including the appointment of William J. Black, Jr. as Executive Vice Chair, Christopher F. Baron as President and Chief Executive Officer, and Kevin L. Thompson as EVP, Chief Financial Officer and Corporate Secretary. On April 7, 2026, the Board of Directors approved the involuntary termination without cause of three senior executive officers: George J. Guarini (President and Chief Executive Officer), Janet L. King (Sr. EVP and Chief Operating Officer), and Keary L. Colwell (Sr. EVP, Chief Financial Officer, Chief Administrative Officer and Corporate Secretary). Each departing executive’s change in role was effective April 10, 2026, with a separation date of July 6, 2026, during which time they will continue as non-executive employees providing transition assistance. Estimated cash severance payments total approximately $ 9.2 million, or approximately $ 8.4 million net of taxes, and will be paid over periods ranging from 12 to 24 months . In addition, a total of 47,205 shares of restricted stock will vest in connection with the separations, and each departing executive will receive continued health insurance benefits for periods ranging from 12 to 24 months . The Company expects to recognize these costs beginning in the second quarter of 2026, with certain amounts recognized over the applicable service and payment periods. As these actions were approved and initiated subsequent to March 31, 2026, no amounts related to these charges have been reflected in the Company’s results of operations for the quarter ended March 31, 2026. Additional information regarding these matters was previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 9, 2026. The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that except for the matter discussed above, no other events have occurred that would require adjustments to its disclosures in the condensed consolidated financial statements. ​