What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-08 · 243 added, 149 removed, 836 unchanged (32% of the section changed)

3 unchanged sentences

(in thousands, except share data;

unaudited) March 31, 2026 December 31, 2025

unaudited) June 30, 2026 December 31, 2025

Cash, cash equivalents and restricted cash $ 279,639 $ 225,303

Investment securities:

Available-for-sale, at fair value (net of zero allowance for credit losses at March 31, 2026 and December 31, 2025)

Available-for-sale, at fair value (net of zero allowance for credit losses at June 30, 2026 and December 31, 2025)

1,242,831 1,327,812

20 unchanged sentences

Borrowings and other obligations 625 709

Subordinated notes, net 43,905 43,857

Subordinated notes, net of issuance costs 43,955 43,857

Operating lease liabilities 23,493 24,747

7 unchanged sentences

Authorized - 30,000,000 shares;

issued and outstanding - 16,189,707 and 16,102,687 at March 31, 2026 and December 31, 2025, respectively

issued and outstanding - 16,186,611 and 16,102,687 at June 30, 2026, and December 31, 2025, respectively

216,050 214,910

6 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three months ended

Three months ended Six months ended

(in thousands, except per share amounts;

unaudited) March 31, 2026 December 31, 2025 March 31, 2025

unaudited) June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Interest income

12 unchanged sentences

Net interest income 30,781 30,302 24,972 61,083 49,100

Provision for credit losses on loans — 300 75

(Reversal of) provision for credit losses on loans ( 320 ) — — ( 320 ) 75

Provision for credit losses on unfunded loan commitments — — — — —

1 unchanged sentence

Non-interest income

Dividends on Federal Home Loan Bank stock 855 372 375

Wealth management and trust services 596 573 563

Service charges on deposit accounts 563 563 550 1,126 1,098

Wealth management and trust services 543 596 612 1,139 1,175

Earnings on bank-owned life insurance, net 442 487 429 929 905

Earnings on bank-owned life insurance death benefits 479 — 68

Debit card interchange fees, net 397 362 410 759 806

Dividends on Federal Home Loan Bank stock 199 855 362 1,054 737

Merchant interchange fees, net 142 118 90 260 186

Earnings on bank-owned life insurance death benefits 59 479 238 538 306

Losses on sale of investment securities — — ( 18,736 ) — ( 18,736 )

4 unchanged sentences

Occupancy and equipment 2,090 2,099 2,226 4,189 4,332

Data processing 1,228 1,033 1,136

Professional services 1,371 1,093 908 2,464 1,845

Data processing 1,138 1,228 1,041 2,366 2,177

Federal Deposit Insurance Corporation insurance 555 730 421 1,285 809

Information technology 510 515 563 1,025 976

Charitable contributions 437 82 403

Directors' expense 285 283 304

Depreciation and amortization 270 263 320 533 642

Directors' expense 261 285 279 546 583

Amortization of core deposit intangible 196 200 220 396 447

Charitable contributions 190 437 116 627 519

Deposit network fees 118 149 114 267 228

15 unchanged sentences

Reclassification adjustment for losses realized on the sale of available-for-sale securities in net loss — — 18,736 — 18,736

Net unrealized losses on securities transferred from held-to-maturity to available-for-sale — ( 92,842 ) —

Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity — — 365 — 705

2 unchanged sentences

Other comprehensive (loss) income, net of tax ( 3,408 ) ( 5,382 ) 13,112 ( 8,790 ) 15,668

Total comprehensive income (loss) $ 3,128 $ ( 45,584 ) $ 7,432

Total comprehensive income $ 5,838 $ 3,128 $ 4,576 $ 8,966 $ 12,008

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

For the three months ended March 31, 2026 and 2025

For the three months ended June 30, 2026 and 2025

(in thousands, except share data;

4 unchanged sentences

Shares Amount

Three months ended March 31, 2026

Three months ended June 30, 2026

Balance at April 1, 2026 16,189,707 $ 215,648 $ 202,645 $ ( 23,801 ) $ 394,492

Net income — — 9,246 — 9,246

Other comprehensive loss, net of tax — — — ( 3,408 ) ( 3,408 )

Stock issued under employee stock purchase plan 346 9 — — 9

Restricted stock surrendered for tax withholdings upon vesting ( 900 ) — — —

Restricted stock forfeited / cancelled ( 2,542 ) — — — —

Stock-based compensation - restricted stock — 393 — — 393

Cash dividends paid on common stock ($ 0.25 per share)

— — ( 4,048 ) — ( 4,048 )

Balance at June 30, 2026

16,186,611 $ 216,050 $ 207,843 $ ( 27,209 ) $ 396,684

Three months ended June 30, 2025

Balance at April 1, 2025 16,202,869 $ 216,263 $ 250,815 $ ( 27,512 ) $ 439,566

Net loss — — ( 8,536 ) — ( 8,536 )

Other comprehensive income, net of tax — — — 13,112 13,112

Stock issued under employee stock purchase plan 401 9 — — 9

Stock issued under employee stock ownership plan 21,500 429 — — 429

Restricted stock granted 6,415 — — — —

Restricted stock surrendered for tax withholdings upon vesting ( 368 ) ( 8 ) — — ( 8 )

Restricted stock forfeited / cancelled ( 14,347 ) — — — —

Stock-based compensation - restricted stock — 195 — — 195

Cash dividends paid on common stock ($ 0.25 per share)

— — ( 4,054 ) — ( 4,054 )

Stock issued in payment of director fees ( 100,000 ) ( 2,175 ) — — ( 2,175 )

Balance at June 30, 2025

16,116,470 $ 214,713 $ 238,225 $ ( 14,400 ) $ 438,538

The accompanying notes are an integral part of these consolidated financial statements (unaudited).

BANK OF MARIN BANCORP

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

For the six months ended June 30, 2026 and 2025

(in thousands, except share data;

unaudited) Common Stock Retained

Earnings Accumulated Other

Comprehensive Loss,

Net of Taxes Total

Shares Amount

Six months ended June 30, 2026

Balance at January 1, 2026 16,102,687 $ 214,910 $ 198,163 $ ( 18,419 ) $ 394,654

11 unchanged sentences

Stock issued in payment of director fees 8,325 214 — — 214

Balance at March 31, 2026

Balance at June 30, 2026

16,186,611 $ 216,050 $ 207,843 $ ( 27,209 ) $ 396,684

Three months ended March 31, 2025

Six months ended June 30, 2025

Balance at January 1, 2025 16,089,454 $ 215,511 $ 249,964 $ ( 30,068 ) $ 435,407

Net income — — 4,876 — 4,876

Net loss — — ( 3,660 ) — ( 3,660 )

Other comprehensive income, net of tax — — — 15,668 15,668

9 unchanged sentences

Stock issued in payment of director fees 10,835 255 — — 255

Balance at March 31, 2025

Stock repurchased ( 100,000 ) ( 2,175 ) — — ( 2,175 )

Balance at June 30, 2025

16,116,470 $ 214,713 $ 238,225 $ ( 14,400 ) $ 438,538

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended March 31, 2026 and 2025

For the six months ended June 30, 2026 and 2025

(in thousands;

3 unchanged sentences

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Provision for credit losses on loans — 75

(Reversal of) provision for credit losses on loans ( 320 ) 75

Noncash contribution expense to employee stock ownership plan 373 846

4 unchanged sentences

Accretion of discounts on acquired loans, net 21 ( 82 )

Accretion of discount on subordinated notes 48 —

Amortization of discount on subordinated notes 98 —

Net change in deferred loan origination costs/fees 220 ( 64 )

Write-down of other real estate owned — —

Change in FMV of hedged loans and related interest rate swaps ( 1 ) —

Loss on sale of investment securities

Depreciation and amortization 533 642

Loss on disposal of premises and equipment — 1

Earnings on bank-owned life insurance policies ( 929 ) ( 905 )

7 unchanged sentences

Purchase of available-for-sale securities ( 65,196 ) ( 252,714 )

Proceeds from sale of available-for-sale securities — 167,017

Proceeds from paydowns/maturities of held-to-maturity securities — 56,140

Proceeds from paydowns/maturities of available-for-sale securities 137,883 83,939

Proceeds from sales of non-accrual loans 9,067 1,295

(Increase) decrease in loans receivable, net

( 2,233 ) 8,958

Proceeds from sale of loan 9,067 1,295

Decrease in loans receivable, net 12,274 7,767

Proceeds from bank-owned life insurance policies 1,449 1,805

2 unchanged sentences

Cash Flows from Financing Activities:

Net increase in deposits 12,584 81,956

Net (decrease) increase in deposits ( 45,642 ) 25,033

Repayment of finance lease obligations ( 84 ) ( 77 )

4 unchanged sentences

Proceeds from stock issued under employee and director stock purchase plans 18 17

Net cash provided by financing activities 8,392 77,805

Net cash (used for) provided by financing activities ( 53,910 ) 14,615

Net increase in cash, cash equivalents and restricted cash

29 unchanged sentences

Segment revenue, profit or loss, significant segment expenses and other segment items

Three months ended

(in thousands) March 31, 2026 December 31, 2025 March 31, 2025

Three months ended Six months ended

(in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Community banking segment:

1 unchanged sentence

$ 42,340 $ 36,288 $ 85,135 $ 71,527

Non-interest income 3,238 ( 67,221 ) 2,311

Non-interest income (loss) 2,626 ( 16,233 ) 5,864 ( 13,922 )

Reconciliation of income

All other income 1

543 612 1,139 1,175

Total consolidated income

2 unchanged sentences

Provision for credit losses on loans

( 320 ) — ( 320 ) 75

Provision for credit losses on unfunded loan commitments

14 unchanged sentences

Reconciliation of segment income

All other income 1

All other expense 1

421 398 854 830

Income (loss) before income taxes $ 12,673 $ ( 11,199 ) $ 24,270 $ ( 4,718 )

1 All other income and loss from segment below the quantitative thresholds are attributable to one operating segment of the Bank, the Wealth Management and Trust Services, which does not meet the quantitative thresholds for presenting reportable segments.

Expenses of Wealth Management and Trust Services are comprised of salary and employee benefits, professional services, data processing, occupancy and equipment and other expenses totaling $ 450 thousand, $ 454 thousand and $ 432 thousand for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively,

1 All other income and expense from segment below the quantitative thresholds are attributable to one operating segment of the Bank, the Wealth Management and Trust Services, which does not meet the quantitative thresholds for presenting reportable segments.

Expenses of Wealth Management and Trust Services are comprised of salary and employee benefits, professional services, data processing, occupancy and equipment and other expenses totaling $ 421 thousand and $ 398 thousand for the three months ended June 30, 2026 and June 30, 2025, respectively, and $ 854 thousand and $ 830 thousand for the six months ended June 30, 2026 and June 30, 2025, respectively.

2 The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

11 unchanged sentences

Under the two-class method, the difference in EPS is nominal for these participating securities.

Three months ended

(in thousands, except per share data) March 31, 2026 March 31, 2025

Three months ended Six months ended

(in thousands, except per share data) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Weighted average basic common shares outstanding 15,952 15,989 15,938 15,983

3 unchanged sentences

Weighted average diluted common shares outstanding 15,991 15,989 15,983 15,983

Net income $ 8,510 $ 4,876

Basic income per common share $ 0.53 $ 0.31

Diluted income per common share

Net income (loss) $ 9,246 $ ( 8,536 ) $ 17,756 $ ( 3,660 )

Basic earnings (loss) per common share $ 0.58 $ ( 0.53 ) $ 1.11 $ ( 0.23 )

Diluted earnings (loss) per common share 1

$ 0.58 $ ( 0.53 ) $ 1.11 $ ( 0.23 )

Weighted average anti-dilutive common shares and unvested restricted shares not included in the calculation of diluted EPS

188 298 188 284

1 Because Bancorp was in a net loss position for the three and six months ended June 30, 2025, diluted net loss per share is the same as basic net loss per share, as the inclusion of potentially dilutive common shares would have been anti-dilutive.

Recently Adopted and Issued Accounting Standards

Accounting Standards Adopted in 2026

We have not adopted any new accounting standards during three months ended March 31, 2026.

We have not adopted any new accounting standards during three and six months ended June 30, 2026.

Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU No.

In November 2024, the Financial Accounting Standards Board "FASB" issued Accounting Standards Update "ASU" No.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

5 unchanged sentences

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity , which revises current guidance for determining the accounting acquirer for a transaction effected primarily by exchanging equity interests in which the legal acquiree is a variable interest entity that meets the definition of a business.

D etermining the Accounting Acquirer in the Acquisition of a Variable Interest Entity , which revises current guidance for determining the accounting acquirer for a transaction effected primarily by exchanging equity interests in which the legal acquiree is a variable interest entity that meets the definition of a business.

The amendments require that an entity consider the same factors that are currently required for determining which entity is the accounting acquirer in other acquisition transactions.

5 unchanged sentences

ASU 2025-08 is effective for the Company's annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, and should be applied prospectively to loans that are acquired on or after the initial application date.

Early adoption is permitted, The Company is evaluating the impact of this update on its financial statements and related disclosures, and does not expect the adoption to have a material impact on its business operations or Consolidated Statements of Financial Condition.

Early adoption is permitted.

The Company is evaluating the impact of this update on its financial statements and related disclosures, and does not expect the adoption to have a material impact on its business operations or Consolidated Statements of Financial Condition.

In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270) related to interim disclosure requirements.

1 unchanged sentence

The update also incorporates a disclosure principle that requires entities to disclose material events that occur after the end of the last annual reporting period.

This update is effective for interim periods within annual periods beginning after December 15, 2027 and early adoption is permitted.

The Company is currently evaluating the impact that the adoption of this new standard on its financial

statements and related disclosures, and does not expect the adoption to have a material impact on its business operations or Consolidated Statements of Financial Condition.

This update is

effective for interim periods within annual periods beginning after December 15, 2027 and early adoption is permitted.

The Company is currently evaluating the impact that the adoption of this new standard on its financial statements and related disclosures, and does not expect the adoption to have a material impact on its business operations or Consolidated Statements of Financial Condition.

Fair Value of Assets and Liabilities

15 unchanged sentences

Changes in Fair Value Recorded In 1

March 31, 2026

June 30, 2026

Securities available-for-sale:

5 unchanged sentences

Derivative financial assets (interest rate contracts) $ 202 $ — $ 202 $ — NI

Derivative financial liabilities (interest rate contracts) $ 2 $ — $ 2 $ — NI

December 31, 2025

13 unchanged sentences

government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued securities, and corporate bonds.

As of March 31, 2026 and December 31, 2025, there were no Level 3 securities.

The Bank did not hold any held-to-maturity securities at March 31, 2026.

We did not record any credit loss expense on held-to-maturity securities during the three months ended March 31, 2025.

As of June 30, 2026 and December 31, 2025, there were no Level 3 securities.

The Bank did not hold any held-to-maturity securities at June 30, 2026.

We did not record any credit loss expense on held-to-maturity securities during the six months ended June 30, 2025.

Fair value of held-to-maturity securities is determined using the same techniques discussed above for available-for-sale securities.

13 unchanged sentences

These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as individually analyzed loans that are collateral dependent and other real estate owned ("OREO").

As of March 31, 2026 and December 31, 2025, we carried assets measured at fair value on a non-recurring basis totaling $ 8.4 million and $ 18.9 million, respectively, which were all individually analyzed loans that are collateral dependent (Level 3) net of specific allowances of $ 17 thousand and $ 7.2 million, respectively.

As of June 30, 2026 and December 31, 2025, we carried assets measured at fair value on a non-recurring basis totaling $ 8.4 million and $ 18.9 million, respectively, which were all individually analyzed loans that are collateral dependent (Level 3) net of specific allowances of $ 17 thousand and $ 7.2 million, respectively.

(in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs

1 unchanged sentence

Disclosures about Fair Value of Financial Instruments

The table below is a summary of fair value estimates for financial instruments as of March 31, 2026 and December 31, 2025, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note).

The table below is a summary of fair value estimates for financial instruments as of June 30, 2026 and December 31, 2025, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note).

The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions.

Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities.

Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of March 31, 2026 and December 31, 2025.

There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of March 31, 2026 or December 31, 2025.

Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of June 30, 2026 and December 31, 2025.

There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of June 30, 2026 or December 31, 2025.

See further discussion on values within Note 4, Investment Securities, to the consolidated financial statements in this Form 10-Q.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in thousands) Carrying Amounts Fair Value Fair Value Hierarchy Carrying Amounts Fair Value Fair Value Hierarchy

12 unchanged sentences

The value of off-balance-sheet financial instruments is estimated based on the fee income associated with the commitments, which in the absence of credit exposure, is considered to approximate their settlement value.

The fair value of commitment fees was not material as of March 31, 2026 or December 31, 2025.

The fair value of commitment fees was not material as of June 30, 2026 or December 31, 2025.

Investment Securities

5 unchanged sentences

Allowance for Credit Losses Net Carrying Amount Gross Unrealized Fair Value

The Bank did not hold any HTM securities at March 31, 2026.

The Bank did not hold any HTM securities at June 30, 2026.

In the fourth quarter of 2025, the Bank completed a balance sheet repositioning and reclassified its HTM portfolio into AFS.

1 unchanged sentence

Obligations of state and political subdivisions Corporate bonds

A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of March 31, 2026 and December 31, 2025 is presented below.

A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of June 30, 2026 and December 31, 2025 is presented below.

Available-for-sale:

2 unchanged sentences

(in thousands) Gains (Losses)

March 31, 2026

June 30, 2026

Securities of Government Agencies and GSEs:

14 unchanged sentences

Total available-for-sale $ 1,353,961 $ 3,509 $ ( 29,658 ) $ — $ 1,327,812

1 Amortized cost and fair value exclude accrued interest receivable of $ 4.6 million and $ 4.8 million at March 31, 2026 and December 31, 2025, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

1 Amortized cost and fair value exclude accrued interest receivable of $ 4.4 million and $ 4.8 million at June 30, 2026 and December 31, 2025, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

2 Federal Home Loan Mortgage Corporation

1 unchanged sentence

4 Government National Mortgage Association

The amortized cost a nd fair value of investment debt securities by contractual maturity at March 31, 2026 and December 31, 2025 are shown below.

The amortized cost a nd fair value of investment debt securities by contractual maturity at June 30, 2026 and December 31, 2025 are shown below.

Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Available-for-Sale Available-for-Sale

5 unchanged sentences

Total $ 1,281,460 $ 1,242,831 $ 1,353,961 $ 1,327,812

There were no sales of investment securities in the first quarters of 2026 or 2025.

Three months ended

Sale of investment securities and gross gains and losses are shown in the following table:

Three months ended Six months ended

(in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Available-for-sale:

Sales proceeds $ — $ 167,017 $ — $ 167,017

Gross realized gains — — — —

Gross realized losses $ — ( 18,736 ) $ — $ ( 18,736 )

The reported values of pledged investment securities are shown in the following table.

(in thousands) March 31, 2026 December 31, 2025

(in thousands) June 30, 2026 December 31, 2025

Pledged to the State of California:

7 unchanged sentences

Total pledged investment securities $ 751,082 $ 838,202

There were 181 and 114 securities in unrealized loss positions at March 31, 2026 and December 31, 2025, respectively.

There were 194 and 114 securities in unrealized loss positions at June 30, 2026 and December 31, 2025, respectively.

Those securities are summarized and classified according to the duration of the loss period in the tables below:

March 31, 2026 < 12 continuous months ≥ 12 continuous months Total securities

June 30, 2026 < 12 continuous months ≥ 12 continuous months Total securities

in a loss position

7 unchanged sentences

Total available-for-sale 903,861 ( 9,368 ) 200,740 ( 29,631 ) 1,104,601 ( 38,999 )

Total securities at loss position $ 866,965 $ ( 4,978 ) $ 211,714 $ ( 29,901 ) $ 1,078,679 $ ( 34,879 )

December 31, 2025 < 12 continuous months ≥ 12 continuous months Total securities

8 unchanged sentences

Total available-for-sale $ 284,341 $ ( 772 ) $ 233,026 $ ( 28,886 ) $ 517,367 $ ( 29,658 )

As of March 31, 2026, the investment portfolio included 70 investment securities that had been in a continuous loss position for twelve months or more and 111 investment securities that had been in a loss position for less than twelve months.

As of June 30, 2026, the investment portfolio included 67 investment securities that had been in a continuous loss position for twelve months or more and 127 investment securities that had been in a loss position for less than twelve months.

Securities issued by government-sponsored enterprises, such as FNMA and FHLMC, usually have implicit credit support from the U.S.

1 unchanged sentence

However, since 2008, FNMA and FHLMC have been under government conservatorship and, therefore, contractual cash flows for these investments carry explicit guarantees by the U.S.

federal government while FNMA and FHLMC remain under conservatorship.

federal government.

Securities issued by GNMA have explicit credit guarantees by the U.S.

1 unchanged sentence

Our investments in obligations of state and political subdivision bonds are deemed creditworthy after our comprehensive analysis of the issuers' latest financial information, credit ratings by major credit agencies, and/or credit enhancements.

No allowances for credit losses have been recognized on available-for-sale securities in an unrealized loss position, as management does not believe any of the securities are impaired due to credit risk factors at either March 31, 2026 or December 31, 2025.

In addition, for any available-for-sale securities in an unrealized loss position at March 31, 2026 and December 31, 2025, the Bank assessed whether it intended to sell the securities, or if it was more likely than not that it would be required to sell the securities before recovery of its amortized cost basis, which would require a write-down to fair value through net income.

In addition, for any available-for-sale securities in an unrealized loss position at June 30, 2026 and December 31, 2025, the Bank assessed whether it intended to sell the securities, or if it was more likely than not that it would be required to sell the securities before recovery of its amortized cost basis, which would require a write-down to fair value through net income.

Because the Bank did not intend to sell those securities that were in an unrealized loss position, and it was not more-likely-than-not that the Bank would be required to sell the securities before recovery of their amortized cost bases, the Bank determined that no write-down was necessary as of the reporting date.

5 unchanged sentences

On January 2, 2026 FHLB converted its legacy Class B stock into Membership-based stock ("Class B-1"), which is tied to membership asset requirements, and Activity-based stock ("Class B-2"), which is tied to borrowing activity.

We held $ 16.7 million of Class B-1 shares and no Class B-2 shares included in other assets on the consolidated statements of condition at March 31, 2026.

We held $ 16.7 million of FHLB stock at December 31, 2025.

We held $ 16.7 million of Class B-1 shares and no Class B-2 shares included in other assets on the consolidated statements of condition at June 30, 2026.

We held $ 16.7 million of legacy Class B FHLB stock at December 31, 2025.

The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks, and they do not have a readily determinable market value.

Based on our analysis of FHLB's financial condition and certain qualitative factors, we determined that the FHLB stock w as not im paired at March 31, 2026 and December 31, 2025.

On April 24, 2026, FHLB announced a cash dividend on their Class B-1 stock for the first quarter of 2026 at an annualized dividend rate of 4.75 % to be distributed in mid-May 2026.

Based on our analysis of FHLB's financial condition and certain qualitative factors, we determined that the FHLB stock w as not im paired at June 30, 2026 and December 31, 2025.

On July 24, 2026, FHLB announced a cash dividend on their Class B-1 stock for the second quarter of 2026 at an annualized dividend rate of 4.75 %.

The Bank expects to receive $ 198 thousand upon distribution in mid-August 2026.

In addition, the Bank received $ 199 thousand in special cash dividends on July 29, 2026, declared by the FHLB on the average Class B and Class B-1 membership stock outstanding during the first six months of 2026.

Cash dividends paid on FHLB capital stock are recorded as non-interest income.

Loans and Allowance for Credit Losses on Loans

The following table presents the amortized cost of loans by portfolio class as of March 31, 2026 and December 31, 2025.

(in thousands) March 31, 2026 December 31, 2025

The following table presents the amortized cost of loans by portfolio class as of June 30, 2026 and December 31, 2025.

(in thousands) June 30, 2026 December 31, 2025

Commercial and industrial $ 162,434 $ 159,898

9 unchanged sentences

Total loans, net of allowance for credit losses on loans $ 2,078,512 $ 2,090,764

1 Amortized cost includes net deferred loan origination costs of $ 2.2 million and $ 2.2 million at March 31, 2026 and December 31, 2025, respectively.

Amounts are also net of unrecognized purchase discounts of $ 1.0 million and $ 1.3 million at March 31, 2026 and December 31, 2025, respectively.

Amortized cost excludes accrued interest, which totaled $ 6.9 million and $ 6.8 million at March 31, 2026 and December 31, 2025, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.

1 Amortized cost includes net deferred loan origination costs of $ 2.0 million and $ 2.2 million at June 30, 2026 and December 31, 2025, respectively.

Amounts are also net of unrecognized purchase discounts of $ 977 thousand and $ 952 thousand at June 30, 2026 and December 31, 2025, respectively.

Amortized cost excludes accrued interest, which totaled $ 6.9 million and $ 6.8 million at June 30, 2026 and December 31, 2025, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.

Lending Risks

16 unchanged sentences

Construction loans include interest reserves that are used for the payment of interest during the development and marketing periods and are capitalized as part of the loan balance.

When a construction loan is placed on non-accrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance.

When a construction loan is placed on non-accrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal

These loans are underwritten after an evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals.

1 unchanged sentence

Significant events can affect the construction industry, including:

the inherent volatility of real estate markets and vulnerability to delays due

to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes.

the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes.

Estimates of construction costs and value associated with the completed project may be inaccurate.

41 unchanged sentences

We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly.

The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of March 31, 2026 and December 31, 2025.

The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of June 30, 2026 and December 31, 2025.

The current year vintage table reflects year-to-date gross charge-offs by loan portfolio class and year of origination.

2 unchanged sentences

(in thousands) Term Loans - Amortized Cost by Origination Year Revolving Loans Amortized Cost

March 31, 2026 2026 2025 2024 2023 2022 Prior Total

June 30, 2026 2026 2025 2024 2023 2022 Prior Total

Commercial and industrial:

40 unchanged sentences

Special Mention 1,002 2,392 — — — 102 10,925 14,421

(in thousands) Term Loans - Amortized Cost by Origination Year Revolving Loans Amortized Cost

December 31, 2025 2025 2024 2023 2022 2021 Prior Total

Substandard 19 520 — — — — 49 588

3 unchanged sentences

Special Mention 7,275 — 367 4,092 18,153 14,461 — 44,348

(in thousands) Term Loans - Amortized Cost by Origination Year Revolving Loans Amortized Cost

December 31, 2025 2025 2024 2023 2022 2021 Prior Total

Substandard 1,513 — — 3,137 — 314 — 4,964

23 unchanged sentences

Totals $ 346,671 $ 160,447 $ 106,861 $ 230,350 $ 266,609 $ 824,207 $ 185,708 $ 2,120,853

The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of March 31, 2026 and December 31, 2025.

Loan Aging Analysis by Class

The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of June 30, 2026 and December 31, 2025.

Loan Aging Analysis by Portfolio Class

(in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, non-owner occupied Construction Home equity Other residential Installment and other consumer Total

March 31, 2026

June 30, 2026

30-59 days past due $ 54 $ — $ 509 $ — $ 741 $ — $ 290 $ 1,594

21 unchanged sentences

Non-accrual loans with no allowance $ — $ 314 $ 8,822 $ — $ 401 $ — $ 204 $ 9,741

1 There were no non-performing loans over 90 days past due and accruing interest as of March 31, 2026 or December 31, 2025 .

2 None of the non-accrual loans as of March 31, 2026 or December 31, 2025 were earning interest on a cash or accrual basis.

We reversed $ 1 thousand in accrued interest income for loans that were placed on non-accrual status during the three months ended March 31, 2026.

We reversed accrued interest income of $ 33 thousand for loans that were placed on non-accrual status during the three months ended March 31, 2025.

1 There was one commercial and industrial loan over 90 days past due and accruing interest as of June 30, 2026 that was approved for term-out but subsequently delayed.

However, the loan remains in the process of collection and is expected to be restored to a current payment schedule in the near future.

There were no non-performing loans over 90 days past due and accruing interest as of December 31, 2025.

2 None of the non-accrual loans as of June 30, 2026 or December 31, 2025 were earning interest on a cash or accrual basis.

We reversed $ 1.5 thousand in accrued interest income for loans that were placed on non-accrual status during the three and six months ended June 30, 2026, respectively.

We reversed accrued interest income of $ 11 thousand and $ 44 thousand for loans that were placed on non-accrual status during the three and six months ended June 30, 2025, respectively.

Collateral Dependent Loans

The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class at March 31, 2026 and December 31, 2025.

The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class at June 30, 2026 and December 31, 2025.

Amortized Cost by Collateral Type

1 unchanged sentence

Allowance for Credit Losses

March 31, 2026

June 30, 2026

Commercial real estate, non-owner occupied $ 8,118 $ — $ — $ 8,118 $ —

1 unchanged sentence

Other residential — 67 — 67 15

Installment and other consumer — — 44 44 2

Total $ 8,118 $ 286 $ 44 $ 8,448 $ 17

5 unchanged sentences

Total $ 25,701 $ 473 $ — $ 26,174 $ 7,244

1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at March 31, 2026 and December 31, 2025.

The weighted average loan-to-value of real estate secured collateral dependent loans was approximately 64 % at March 31, 2026 and 106 % at December 31, 2025.

1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at June 30, 2026 and December 31, 2025.

The weighted average loan-to-value of real estate secured collateral dependent loans was approximately 66 % at June 30, 2026 and 106 % at December 31, 2025.

Loan Mod ifications to Borrowers Experiencing Financial Difficulty

There were no modifications of loans during the three months ended March 31, 2026 or March 31, 2025 requiring disclosure.

There were no modifications of loans during the three and six months ended June 30, 2026 requiring disclosure.

The following table summarizes the amortized cost of loans as of June 30, 2025 that were modified during the three and six months ended June 30, 2025, by portfolio class and type of modification granted.

(in thousands) Term Extension Total Modifications Percent of Portfolio Class Total

Three months ended June 30, 2025

Commercial non-owner occupied $ 3,488 $ 3,488 0.3 %

Total $ 3,488 $ 3,488

Six months ended June 30, 2025

Commercial non-owner occupied $ 3,488 $ 3,488 0.3 %

Total $ 3,488 $ 3,488

As of June 30, 2025, there were no unfunded loan commitments for loans that were modified during the three and six months ended June 30, 2025.

The following table summarizes the financial effect of loan modifications presented in the tables above during the three and six months ended June 30, 2025 by portfolio class.

Weighted-Average Term Extension (in years)

Three months ended June 30, 2025

Commercial non-owner occupied 1.2

Six months ended June 30, 2025

Commercial non-owner occupied 1.2

The loan modifications did not significantly impact the determination of the allowance for credit losses on loans during the three and six months ended June 30, 2025.

The Bank closely monitors the performance of the modified loans to understand the effectiveness of its modification efforts.

The following table summarizes the amortized cost and payment status of loans as of June 30, 2025 that were modified during the three and six months ended June 30, 2025 by portfolio class.

(in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Non-Accrual

Three months ended June 30, 2025

Commercial non-owner occupied $ 3,488 $ — $ — $ — $ 3,488 $ 717

Total $ 3,488 $ — $ — $ — $ 3,488 $ 717

Six months ended June 30, 2025

Commercial non-owner occupied $ 3,488 $ — $ — $ — $ 3,488 $ 717

Total $ 3,488 $ — $ — $ — $ 3,488 $ 717

Allocation of the Allowance for Credit Losses on Loans

The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of March 31, 2026 and December 31, 2025 .

The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of June 30, 2026 and December 31, 2025 .

Allocation of the Allowance for Credit Losses on Loans

March 31, 2026

June 30, 2026

Modeled expected credit losses $ 1,526 $ 1,453 $ 8,168 $ 50 $ 709 $ 885 $ 652 $ — $ 13,443

11 unchanged sentences

Three months ended March 31, 2026

Three months ended June 30, 2026

Beginning balance $ 2,014 $ 2,452 $ 14,327 $ 204 $ 764 $ 974 $ 745 $ 1,343 $ 22,823

(Reversal) Provision ( 3 ) ( 2 ) 42 5 ( 39 ) ( 105 ) ( 56 ) 158 —

Provision (Reversal) 90 ( 203 ) ( 213 ) 39 20 ( 72 ) 22 ( 3 ) ( 320 )

(Charge-offs) ( 30 ) — — — — — ( 9 ) — ( 39 )

1 unchanged sentence

Ending balance $ 2,074 $ 2,249 $ 14,114 $ 243 $ 784 $ 902 $ 758 $ 1,340 $ 22,464

Three months ended March 31, 2025

Three months ended June 30, 2025

Beginning balance $ 1,508 $ 2,319 $ 21,761 $ 416 $ 698 $ 1,074 $ 884 $ 1,246 $ 29,906

(Reversal) Provision ( 68 ) ( 42 ) 477 ( 222 ) 14 ( 67 ) ( 8 ) ( 9 ) 75

Provision (Reversal) 152 83 ( 245 ) ( 32 ) 85 36 ( 13 ) ( 66 ) —

(Charge-offs) ( 52 ) — — — — — — — ( 52 )

1 unchanged sentence

Ending balance $ 1,608 $ 2,402 $ 21,516 $ 384 $ 783 $ 1,110 $ 871 $ 1,180 $ 29,854

Six months ended June 30, 2026

Beginning balance $ 2,089 $ 2,454 $ 21,477 $ 199 $ 803 $ 1,079 $ 803 $ 1,185 $ 30,089

Provision (Reversal) 86 ( 205 ) ( 171 ) 44 ( 19 ) ( 177 ) ( 33 ) 155 ( 320 )

(Charge-offs) ( 101 ) — ( 7,192 ) — — — ( 12 ) — ( 7,305 )

Recoveries — — — — — — — — —

Ending balance $ 2,074 $ 2,249 $ 14,114 $ 243 $ 784 $ 902 $ 758 $ 1,340 $ 22,464

Six months ended June 30, 2025

Beginning balance $ 1,576 $ 2,361 $ 22,093 $ 638 $ 684 $ 1,141 $ 908 $ 1,255 $ 30,656

Provision (Reversal) 84 41 232 ( 254 ) 99 ( 31 ) ( 21 ) ( 75 ) 75

(Charge-offs) ( 52 ) — ( 809 ) — — — ( 16 ) — ( 877 )

Recoveries — — — — — — — — —

Ending balance $ 1,608 $ 2,402 $ 21,516 $ 384 $ 783 $ 1,110 $ 871 $ 1,180 $ 29,854

Pledged Loans

Our 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 $ 1.435 billion and $ 1.396 billion at March 31, 2026 and December 31, 2025, respectively.

In addition, we pledge eligible residential loans, which totaled $ 53.3 million and $ 97.2 million at March 31, 2026 and December 31, 2025, respectively, to secure our borrowing capacity with the Federal Reserve Bank ("FRB").

Our 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 $ 1.460 billion and $ 1.396 billion at June 30, 2026 and December 31, 2025,

respectively.

In addition, we pledge eligible residential loans, which totaled $ 52.0 million and $ 97.2 million at June 30, 2026 and December 31, 2025, respectively, to secure our borrowing capacity with the Federal Reserve Bank ("FRB").

For additional information, see Note 6, Borrowings and Other Obligations.

3 unchanged sentences

Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features.

Related party loans totaled $ 3.6 million and $ 3.6 million as of March 31, 2026 and December 31, 2025, respectively.

In addition, undisbursed commitments to related parties totaled $ 10 thousand as of both March 31, 2026 and December 31, 2025,

Related party loans totaled $ 3.7 million and $ 3.6 million as of June 30, 2026 and December 31, 2025, respectively.

In addition, undisbursed commitments to related parties totaled $ 139 thousand as of both June 30, 2026 and December 31, 2025.

Borrowings and Other Obligations

Federal Reserve Bank:

The Bank had a line of credit through the Discount Window at the Federal Reserve Bank of San Francisco ("FRBSF") totaling $ 325.4 million and $ 344.7 million as of March 31, 2026 and December 31, 2025, respectively, secured by investment securities and residential loans.

The Bank had a line of credit through the Discount Window at the Federal Reserve Bank of San Francisco ("FRBSF") totaling $ 310.4 million and $ 344.7 million as of June 30, 2026 and December 31, 2025, respectively, secured by investment securities and residential loans.

Federal Home Loan Bank:

The Bank had lines of credit with the FHLB totaling $ 976.1 million and $ 967.2 million as of March 31, 2026 and December 31, 2025, respectively, based on eligible collateral of certain loans and investment securities.

The Bank had lines of credit with the FHLB totaling $ 978.4 million and $ 967.2 million as of June 30, 2026 and December 31, 2025, respectively, based on eligible collateral of certain loans and investment securities.

Federal Funds Lines of Credit:

The Bank had unsecured lines of credit with correspondent banks for overnight borrowings totaling $ 140.0 million as of both March 31, 2026 and December 31, 2025.

The Bank had unsecured lines of credit with correspondent banks for overnight borrowings totaling $ 140.0 million as of both June 30, 2026 and December 31, 2025.

In general, interest rates on these lines approximate the federal funds target rate.

2 unchanged sentences

The 2035 Notes have an initial fixed interest rate of 6.75 % per annum, payable semi-annually in arrears on June 1 and December 1 of each year, commencing on June 1, 2026.

Subordinated Notes.

Refer to Note 9, Subordinated Notes, for additional information.

Other Obligations:

Finance lease liabilities totaling $ 668 thousand and $ 709 thousand as of March 31, 2026 and December 31, 2025, respectively, are included in borrowings and other obligations in the consolidated statements of condition.

Finance lease liabilities totaling $ 625 thousand and $ 709 thousand as of June 30, 2026 and December 31, 2025, respectively, are included in borrowings and other obligations in the consolidated statements of condition.

Refer to Note 8, Commitments and Contingent Liabilities, for additional information.

The carrying values and weighted average interest rates on borrowings and other obligations as of March 31, 2026 and December 31, 2025 are summarized in the following table.

March 31, 2026 December 31, 2025

The carrying values and weighted average interest rates on borrowings and other obligations as of June 30, 2026 and December 31, 2025 are summarized in the following table.

June 30, 2026 December 31, 2025

(dollars in thousands) Carrying Value Average Balance Weighted

7 unchanged sentences

Stockholders' Equity

On April 23, 2026, Bancorp approved a $ 0.25 per share cash dividend to shareholders of record at the close of business on May 7, 2026.

The dividend is payable on May 14, 2026.

On July 23, 2026, Bancorp approved a $ 0.25 per share cash dividend to shareholders of record at the close of business on August 6, 2026.

The dividend is payable on August 13, 2026.

Share-Based Payments

18 unchanged sentences

The table below depicts the total number of shares, amount, and weighted average price withheld for cashless exercises for the periods presented.

Three months ended

March 31, 2026 March 31, 2025

Six months ended

June 30, 2026 June 30, 2025

Number of shares withheld 6,894 4,325

3 unchanged sentences

On July 24, 2025, the Board of Directors authorized the repurchase of up to $ 25.0 million of its common stock effective July 24, 2025 through July 31, 2027.

There were no repurchases in the three months ended March 31, 2026 and 2025.

Bancorp will continue to assess opportunities to utilize the program.

There were no repurchases in the six months ended June 30, 2026.

Bancorp repurchased 100,000 shares totaling $ 2.2 million at an average price of $ 21.72 per share in the six months ending June 30, 2025, under our share repurchase program that expired July 31, 2025.

Bancorp will continue to

assess opportunities to utilize the program.

As of June 30, 2026, the amount remaining available for repurchase of shares was $ 23.9 million.

Commitments and Contingent Liabilities

10 unchanged sentences

The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows:

(in thousands) March 31, 2026 December 31, 2025

(in thousands) June 30, 2026 December 31, 2025

Commercial lines of credit $ 214,448 $ 232,758

5 unchanged sentences

We record an allowance for credit losses on unfunded loan commitments at the balance sheet date based on estimates of the probability that these commitments will be drawn upon according to historical utilization experience of the different types of commitments and expected loss rates determined for pooled funded loans.

The allowance for credit losses on unfunded commitments totaled $ 1.1 million at both March 31, 2026 and December 31, 2025, which is included in interest payable and other liabilities in the consolidated statements of condition.

There was no provision for credit losses on unfunded loan commitments in the first quarter of 2026 or 2025.

The allowance for credit losses on unfunded commitments totaled $ 1.1 million at both June 30, 2026 and December 31, 2025, which is included in interest payable and other liabilities in the consolidated statements of condition.

There was no provision for credit losses on unfunded loan commitments in the three and six months ended June 30, 2026 and 2025.

We lease premises under long-term non-cancelable operating leases with remaining terms of 4 months to 15 years, 11 months , most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses.

3 unchanged sentences

The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities.

(in thousands) March 31, 2026 December 31, 2025

(in thousands) June 30, 2026 December 31, 2025

Operating leases:

9 unchanged sentences

The following table shows supplemental disclosures of noncash investing and financing activities for the periods presented.

Three months ended

(in thousands) March 31, 2026 March 31, 2025

Six months ended

(in thousands) June 30, 2026 June 30, 2025

Right-of-use assets obtained in exchange for operating lease liabilities

$ 689 $ 1,387

Right-of-use assets obtained in exchange for finance lease liabilities $ — $ —

The following table shows components of operating and finance lease cost.

Three months ended

(in thousands) March 31, 2026 March 31, 2025

Three months ended Six months ended

(in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Operating lease cost 1

2 unchanged sentences

Amortization of right-of-use assets 2

$ 44 $ 37 $ 88 $ 74

Interest on finance lease liabilities 3

4 unchanged sentences

3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income (loss).

The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of March 31, 2026.

The total lease payments do not include future minimum payment obligations of approximately $ 2.3 million, excluding renewal options, for operating lease agreements related to an existing administrative and retail branch that commenced subsequent to June 30, 2026.

The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.

(in thousands) March 31, 2026

(in thousands) June 30, 2026

Year Operating Leases Finance Leases

12 unchanged sentences

Bancorp may be subject to legal actions that arise from time to time in the normal course of business.

Bancorp's management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank.

Bancorp's management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has

recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank.

The Bank is responsible for a proportionate share of certain litigation indemnifications provided to Visa U.S.A.

14 unchanged sentences

At the time of issuance, $ 30.0 million was downstreamed as common equity to the Bank.

At March 31, 2026, the balance of the 2035 Notes included in the Company’s consolidated statements of condition net of debt issuance cost, was $ 43.9 million.

The amortization of debt issuance cost was $ 48 thousand for the three months ended March 31, 2026.

At June 30, 2026, the balance of the 2035 Notes included in the Company’s consolidated statements of condition net of debt issuance cost, was $ 44.0 million.

The amortization of debt issuance cost was $ 50 thousand and $ 98 thousand for the three and six months ended June 30, 2026, respectively.

The Company was in compliance with all covenants under the terms of the 2035 Notes.

12 unchanged sentences

Asset derivatives Liability derivatives

(in thousands) March 31,

2026 December 31, 2025 March 31,

(in thousands) June 30,

2026 December 31, 2025 June 30,

2026 December 31, 2025

4 unchanged sentences

1 Refer to Note 3, Fair Value of Assets and Liabilities, for valuation methodology.

The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of March 31, 2026 and December 31, 2025.

Carrying Amounts of Hedged Assets Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets

(in thousands) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

(in thousands) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

Loans receivable 1

3 unchanged sentences

The following table presents the pretax net gains recognized in interest income related to our fair value hedges for the years presented.

Three months ended

(in thousands) March 31, 2026 March 31, 2025

Three months ended Six months ended

(in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Interest and fees on loans 1

16 unchanged sentences

Instruments Received Net Amount

March 31, 2026

June 30, 2026

Derivatives by Counterparty:

12 unchanged sentences

Instruments Pledged

March 31, 2026

$ 2 $ — $ 2 $ ( 2 ) $ —

Total $ 2 $ — $ 2 $ ( 2 ) $ — $ —

December 31, 2025

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements