The following discussion and analysis should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025 and the unaudited Consolidated Financial Statements and Notes set forth elsewhere in this Quarterly Report on Form 10-Q. GENERAL Hope Bancorp, Inc. is the holding company of Bank of Hope, the only regional Korean American bank in the United States with $18.99 billion in total assets at June 30, 2026. With the addition of Territorial Savings, a division of Bank of Hope, the Company became the largest regional bank catering to multicultural customers across the continental United States and Hawaii. Headquartered in Los Angeles, the Bank provides a full suite of commercial, corporate and consumer loans, deposit and fee-based products and services, including commercial and commercial real estate lending, SBA lending, residential mortgage and other consumer lending, treasury management services, foreign currency exchange solutions, interest rate derivative products, and international trade financing, among others. The Bank operates 45 full-service branches in California, New York, New Jersey, Washington, Texas, Illinois, Georgia and Alabama under the Bank of Hope banner, and 28 branches in Hawaii under the Territorial Savings banner. The Bank also operates SBA loan production offices, commercial loan production offices, and residential mortgage loan production offices throughout the United States, and a representative office in Seoul, South Korea. Bank of Hope is a California-chartered bank, and its deposits are insured by the FDIC to the extent provided by law. Bank of Hope is an Equal Opportunity Lender. The Bank’s principal business involves earning interest on loans and investment securities, primarily funded by deposits and borrowings. Operating income and net income (loss) are derived primarily from the difference between interest income received from interest earning assets and interest expense paid on interest bearing liabilities and, to a lesser extent, from fees received in connection with servicing loan and deposit accounts, providing fee-based products and services, and income from the sale of loans. Major expenses are the interest paid on deposits and borrowings, provisions for credit losses and general operating expenses, which primarily consist of salaries and employee benefits, occupancy costs, and other operating expenses. Interest rates are highly sensitive to many factors that are beyond our control, such as changes in the national economy and in the related monetary policies of the FRB, inflation, unemployment, consumer spending, tariffs, political changes, and other events. We cannot predict the impact that these factors and future changes in domestic and foreign economic and political conditions might have on our business, financial condition, and results of operations. 61 Selected Financial Data The following tables set forth a performance overview concerning the periods indicated and should be read in conjunction with the unaudited Consolidated Financial Statements and Notes set forth elsewhere in this Quarterly Report on Form 10-Q and the following Results of Operations and Financial Condition sections of this MD&A. During the second quarter of 2025, we completed the acquisition of Territorial Bancorp and repositioned our investment securities AFS portfolio. In addition, in the first quarter of 2026, we announced an upcoming acquisition of certain assets and liabilities of the Commercial Banking Unit of SMBC, the closing of which is subject to regulatory approvals and the satisfaction of other customary closing conditions. The comparability of our operating results for the three and six months ended June 30, 2025, with performance for the three and six months ended June 30, 2026, was impacted by acquisition accounting adjustments associated with the 2025 Territorial Merger, the loss on securities sold, merger-related expenses for both the Merger and SMBC acquisition, and the change in the California state tax apportionment rate. We have provided supplemental non-GAAP information to facilitate a better understanding of financial performance, identifying certain items as “notable.” At or for the Three Months Ended June 30, At or for the Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands, except share and per share data) Income Statement Data: Interest income $ 236,177 $ 239,092 $ 466,321 $ 456,258 Interest expense 107,208 121,637 213,295 237,986 Net interest income 128,969 117,455 253,026 218,272 Provision for credit losses 6,770 11,092 15,420 15,892 Net interest income after provision for credit losses 122,199 106,363 237,606 202,380 Noninterest income (loss) 18,850 (22,956) 35,817 (7,268) Noninterest expense 98,464 109,473 192,919 193,334 Income (loss) before income taxes 42,585 (26,066) 80,504 1,778 Income tax provision (benefit) 9,554 (1,316) 17,933 5,432 Net income (loss) $ 33,031 $ (24,750) $ 62,571 $ (3,654) Net income, excluding notable items (1) $ 34,499 $ 24,597 $ 64,165 $ 47,471 Per Share Data: Earnings (loss) per common share – basic $ 0.26 $ (0.19) $ 0.49 $ (0.03) Earnings (loss) per common share – diluted $ 0.26 $ (0.19) $ 0.49 $ (0.03) Earnings per common share – diluted excluding notable items (1) $ 0.27 $ 0.19 $ 0.50 $ 0.38 Cash dividends declared per common share $ 0.14 $ 0.14 $ 0.28 $ 0.28 Book value per common share (period end) $ 17.97 $ 17.38 $ 17.97 $ 17.38 Tangible common equity (“TCE”) per share (period end) (1) $ 13.85 $ 13.28 $ 13.85 $ 13.28 Common Share Count: Number of common shares outstanding (period end) 127,741,836 128,124,458 127,741,836 128,124,458 Weighted average shares – basic 127,778,952 128,001,605 127,929,320 124,426,400 Weighted average shares – diluted 128,308,861 128,001,605 128,474,397 124,426,400 Selected Performance Ratios: Return on average assets (“ROA”) (2) 0.71 % (0.53) % 0.67 % (0.04) % Return on average stockholders’ equity (“ROE”) (2) 5.76 % (4.45) % 5.45 % (0.33) % Return on average tangible common equity (“ROTCE”) (1) (2) 7.48 % (5.83) % 7.07 % (0.43) % Net interest margin (2) (3) 2.96 % 2.69 % 2.93 % 2.62 % Efficiency ratio (4) 66.61 % 115.85 % 66.79 % 91.63 % ROA excluding notable items (1) (2) 0.74 % 0.53 % 0.69 % 0.53 % ROE excluding notable items (1) (2) 6.02 % 4.42 % 5.59 % 4.34 % ROTCE excluding notable items (1) (2) 7.81 % 5.79 % 7.25 % 5.62 % Efficiency ratio excluding notable items (1) (4) 65.22 % 69.13 % 66.02 % 69.45 % 62 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands) Average Balance Sheet Data: Assets $ 18,707,236 $ 18,728,721 $ 18,614,684 $ 17,911,091 Interest earning cash and deposits at other banks 420,971 807,979 429,433 653,106 Loans 14,790,642 14,427,785 14,740,359 13,944,180 Deposits 15,693,005 16,096,188 15,630,685 15,288,311 FHLB borrowings 357,510 48,671 321,423 84,835 Stockholders’ equity 2,293,446 2,224,489 2,296,309 2,186,495 June 30, 2026 June 30, 2025 (Dollars in thousands) Statement of Financial Condition Data - at Period End: Assets $ 18,991,916 $ 18,550,148 Loans receivable 14,941,520 14,438,491 Deposits 15,876,543 15,943,355 FHLB borrowings 472,000 29,752 Stockholders’ equity 2,295,852 2,227,248 Consolidated Capital Ratios (5) Common equity Tier 1 capital ratio 12.27 % 12.08 % Tier 1 capital ratio 12.95 % 12.77 % Total capital ratio 13.95 % 13.78 % Leverage ratio (6) 11.07 % 10.58 % TCE ratio (1) 9.58 % 9.44 % Asset Quality Ratios: Allowance for credit losses to loans receivable 1.03 % 1.04 % Allowance for credit losses to nonaccrual loans 136.83 % 135.01 % Nonaccrual loans to loans receivable 0.75 % 0.77 % Nonperforming loans to loans receivable 0.75 % 0.78 % Nonperforming assets to total assets 0.59 % 0.61 % _____________________________________________ (1)Net income (loss) excluding notable items, earnings per common share - diluted excluding notable items, TCE per share, ROTCE, ROA excluding notable items, ROE excluding notable items, ROTCE excluding notable items, efficiency ratio excluding notable items, and TCE ratio are non-GAAP financial measures that we believe provide investors with information useful in understanding our operating results and financial condition. A quantitative reconciliation of the most directly comparable GAAP to non-GAAP financial measures is provided on the following pages. (2)Annualized. (3)Net interest margin is calculated by dividing annualized net interest income by average total interest earning assets. (4)Efficiency ratio is defined as noninterest expense divided by the sum of net interest income and noninterest income. (5)The ratios generally required to meet the definition of a “well-capitalized” financial institution under certain banking regulations are 5.0% leverage capital ratio, 6.5% common equity tier 1 capital ratio, 8.0% tier 1 capital ratio, and 10.0% total capital ratio. (6)Calculations are based on quarterly average asset balances. 63 Non-GAAP Financial Measurements We provide certain non-GAAP financial measures that we believe provide investors with meaningful supplemental information that is useful in understanding our operating results and financial condition. The methodologies for calculating non-GAAP measures may differ among companies. The following tables reconcile the non-GAAP financial measures used in this Form 10-Q to the most comparable GAAP performance measures. The non-GAAP financial measures provide information useful to investors in understanding our operating performance and trends and assist in comparing our results with the performance of our peers. During the three and six months ended June 30, 2026 and 2025, our operating results included certain notable items as a result of the 2025 Merger with Territorial, our legacy investment securities repositioning, the change in the California state tax apportionment rate, and other items. We have presented figures that adjust for these notable items because they are irregular one-time events, and we believe that doing so will help investors better understand our operating performance. The following table summarizes the impact of non-core notable items recorded for the periods indicated and reconciles them to the most directly comparable GAAP financial measure. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands, except share and per share data) Net income (loss) $ 33,031 $ (24,750) $ 62,571 $ (3,654) Notable items: Merger-related provision for credit losses — 553 — 553 Loss on investment portfolio repositioning — 38,856 — 38,856 FDIC special assessment (reversal) — — (58) — Merger-related costs 2,058 17,281 2,292 19,800 Total notable items included in pre-tax income 2,058 56,690 2,234 59,209 Tax effect on notable items in pre-tax income (590) (12,221) (640) (12,962) Notable impact from California state tax apportionment law change — 4,878 — 4,878 Total notable items, net of tax 1,468 49,347 1,594 51,125 Net income excluding notable items (1) $ 34,499 $ 24,597 $ 64,165 $ 47,471 Diluted common shares 128,308,861 128,001,605 128,474,397 124,426,400 EPS excluding notable items (1) $ 0.27 $ 0.19 $ 0.50 $ 0.38 Average assets $ 18,707,236 $ 18,728,721 $ 18,614,684 $ 17,911,091 ROA excluding notable items (annualized) (1) 0.74 % 0.53 % 0.69 % 0.53 % Average equity $ 2,293,446 $ 2,224,489 $ 2,296,309 $ 2,186,495 ROE excluding notable items (annualized) (1) 6.02 % 4.42 % 5.59 % 4.34 % Average TCE (1) $ 1,765,852 $ 1,699,441 $ 1,769,740 $ 1,690,493 ROTCE excluding notable items (annualized) (1) 7.81 % 5.79 % 7.25 % 5.62 % _____________________________________________ (1)Non-GAAP financial measures. 64 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands) Noninterest expense $ 98,464 $ 109,473 $ 192,919 $ 193,334 Notable items: FDIC special assessment (reversal) — — 58 — Merger-related costs (2,058) (17,281) (2,292) (19,800) Noninterest expense excluding notable items (1) $ 96,406 $ 92,192 $ 190,685 $ 173,534 Revenue (net interest income and noninterest income) $ 147,819 $ 94,499 $ 288,843 $ 211,004 Notable items: Loss on investment portfolio repositioning — 38,856 — 38,856 Revenue excluding notable items (1) $ 147,819 $ 133,355 $ 288,843 $ 249,860 Efficiency ratio excluding notable items (1) 65.22 % 69.13 % 66.02 % 69.45 % Tangible book value per common share is calculated by subtracting goodwill and core deposit intangible assets from total stockholders’ equity, then dividing the difference by the number of shares of common stock outstanding. TCE ratio is calculated by subtracting goodwill and core deposit intangible assets from total stockholders’ equity, then dividing the difference by total assets after subtracting goodwill and core deposit intangible assets. June 30, 2026 June 30, 2025 (Dollars in thousands, except share data) Total stockholders’ equity $ 2,295,852 $ 2,227,248 Less: Goodwill and CDI, net (526,890) (525,428) TCE (1) $ 1,768,962 $ 1,701,820 Total assets $ 18,991,916 $ 18,550,148 Less: Goodwill and CDI, net (526,890) (525,428) Tangible assets (1) $ 18,465,026 $ 18,024,720 Common shares outstanding 127,741,836 128,124,458 Tangible book value per common share (1) $ 13.85 $ 13.28 TCE ratio (1) 9.58 % 9.44 % Return on average tangible common equity is calculated by dividing net income (loss) for the period (annualized) by average stockholders’ equity for the period after subtracting average goodwill and core deposit intangible assets for the period from average stockholders’ equity. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands) Net income (loss) $ 33,031 $ (24,750) $ 62,571 $ (3,654) Average stockholders’ equity $ 2,293,446 $ 2,224,489 $ 2,296,309 $ 2,186,495 Less: Average goodwill and CDI, net (527,594) (525,048) (526,569) (496,002) Average tangible common equity (1) $ 1,765,852 $ 1,699,441 $ 1,769,740 $ 1,690,493 ROTCE (annualized) (1) 7.48 % (5.83) % 7.07 % (0.43) % ________________________________ (1)Non-GAAP financial measures. 65 Results of Operations Overview Net income for the second quarter of 2026 was $33.0 million, or $0.26 per diluted common share, an increase of $57.8 million over net loss of $24.8 million, or $(0.19) per diluted common share, for the same period of 2025. The year-over-year increase in net income was primarily due to increases in noninterest income and net interest income and a decrease in noninterest expense. Net income excluding notable items, a non-GAAP measure, for the three months ended June 30, 2026, was $34.5 million, or $0.27 per diluted common share, compared with net income of $24.6 million, or $0.19 per diluted share, for the same period of 2025. Net income for the six months ended June 30, 2026, was $62.6 million, or $0.49 per diluted common share, compared with net loss of $3.7 million, or $(0.03) per diluted share, for the same period of 2025, which was an increase of $66.2 million. Net income excluding notable items, a non-GAAP measure, for the six months ended June 30, 2026, was $64.2 million, or $0.50 per diluted common share, compared with net income of $47.5 million, or $0.38 per diluted share, for the same period of 2025. The comparison between the six-month periods ended June 30, 2026, and 2025, was impacted by the acquisition of Territorial in April 2025, which included only three months of activity in 2025. Notable items for the six months ended June 30, 2026, included merger-related expenses and other items. Notable items specific to the second quarter of 2025 totaled $49.3 million after tax, comprising $30.5 million after tax in net loss on sales of securities related to the investment securities repositioning, $14.0 million after tax in merger-related items, and a $4.9 million impact on income tax expense from the change in California’s state tax apportionment law. See the “General” section of this MD&A for a reconciliation of GAAP to non-GAAP financial measures. Net Interest Income and Net Interest Margin Net Interest Income A principal component of our earnings is net interest income, which is the difference between the interest and fees earned on loans, investments and interest earning cash, and the interest paid on deposits, borrowed funds, and convertible notes. Net interest income expressed as a percentage of average interest earning assets is referred to as the net interest margin. The net interest spread is the yield on average interest earning assets less the cost of average interest bearing liabilities. Net interest income is affected by changes in the balances of interest earning assets and interest bearing liabilities, changes in yields earned on interest earning assets, and changes in rates paid on interest bearing liabilities. Comparison of Three Months Ended June 30, 2026, with the Three Months Ended June 30, 2025 Net interest income was $129.0 million for the second quarter of 2026, compared with $117.5 million for the same period of 2025, an increase of $11.5 million, or 9.8%. The year-over-year increase in net interest income was primarily driven by a lower cost of deposits, a decrease in the average balance of interest bearing deposits, and an increase in the average balance of interest earning assets, partially offset by lower yields on loans. As of June 30, 2026, the Federal Funds target rate was cut by an aggregate 75 basis points since June 30, 2025, favorably impacting funding costs for the second quarter of 2026 compared with the prior-year period. Comparison of Six Months Ended June 30, 2026, with the Six Months Ended June 30, 2025 Net interest income was $253.0 million for the six months ended June 30, 2026, compared with $218.3 million for the same period of 2025, an increase of $34.8 million, or 15.9%. The year-over-year increase in year-to-date net interest income was primarily driven by a lower cost of funds and an increase in the average balance of loans, partially offset by lower yields on loans and an increase in the average balance of deposits. The year-over-year growth in average earning assets primarily reflected the acquisition of Territorial, which closed in the second quarter of 2025. As of June 30, 2026, the Federal Funds target rate was cut by an aggregate 75 basis points since June 30, 2025, favorably impacting funding costs for the six months ended June 30, 2026, compared with the prior-year period. Net Interest Margin Net interest margin is impacted by the weighted average rates earned on interest earning assets and paid on interest bearing liabilities. The net interest margin for the second quarter of 2026 was 2.96%, up 27 basis points from 2.69% for the same period of 2025. The net interest margin for the six months ended June 30, 2026, was 2.93%, an increase of 31 basis points from 2.62% for the same period of 2025. The net interest margin expansion year over year was primarily driven by funding cost improvements, with the cost of interest bearing deposits decreasing 46 basis points and 60 basis points for the three and six months ended June 30, 2026, compared to the same periods in 2025, respectively. 66 The weighted average yield on loans decreased to 5.73% for the second quarter of 2026, down 15 basis points from 5.88% for the same period of 2025. The weighted average yield on loans decreased by 17 basis points to 5.71% for the six months ended June 30, 2026, down from 5.88% for the same period of 2025. The year-over-year decrease in average loan yields was driven by the downward repricing of variable rate loans, reflecting higher benchmark interest rates in 2025 versus 2026. At June 30, 2026, variable interest rate loans made up 46% of the loan portfolio. The total accretion of net discount on acquired loans was $4.5 million and $9.1 million for the three and six months ended June 30, 2026, respectively, compared with $4.1 million and $4.3 million for the same periods of 2025, respectively. The weighted average yield on investment securities for the three and six months ended June 30, 2026, was 3.68% and 3.65%, respectively, compared with 3.25% and 3.17% for the same periods of 2025, respectively. The increase in average yields was primarily due to higher rates on new purchases of investment securities, and the sale of lower-yielding investment securities in the second quarter of 2025 as part of a strategic securities portfolio repositioning. At June 30, 2026, 22% of the investment portfolio consisted of securities with variable coupon rates. The change in yields was also impacted by fluctuations in the overall investment portfolio yield due to the change in pay-down speeds of investment securities. The weighted average cost of deposits for the three and six months ended June 30, 2026, was 2.60% and 2.62%, respectively, a decrease of 36 basis points and 45 basis points, respectively, from 2.96% and 3.07% for the same periods of 2025, respectively. The weighted average cost of interest bearing deposits for the three and six months ended June 30, 2026, was 3.31% and 3.34%, respectively, a decrease of 46 basis points and 60 basis points, respectively, from 3.77% and 3.94% for the same periods of 2025, respectively. The year-over-year decrease in the cost of deposits was driven by decreases in market interest rates, the planned runoff of higher-cost time deposits, and the positive impact of the acquired Territorial deposits, which have a lower cost of funds. 67 The following tables present our consolidated daily average balance of major assets and liabilities, together with interest rates earned and paid on the various sources and uses of funds for the periods indicated: Three Months Ended June 30, 2026 2025 Average Balance Interest Income/ Expense Average Yield/ Rate* Average Balance Interest Income/ Expense Average Yield/ Rate* (Dollars in thousands) INTEREST EARNINGS ASSETS: Loans(1) (2) $ 14,790,642 $ 211,378 5.73 % $ 14,427,785 $ 211,363 5.88 % Investment securities AFS and HTM(3) 2,221,334 20,359 3.68 % 2,192,533 17,769 3.25 % Interest earning cash and deposits at other banks 420,971 3,808 3.63 % 807,979 8,783 4.36 % FHLB stock and other investments 51,839 632 4.89 % 98,052 1,177 4.81 % Total interest earning assets 17,484,786 236,177 5.42 % 17,526,349 239,092 5.47 % Total noninterest earning assets 1,222,450 1,202,372 Total assets $ 18,707,236 $ 18,728,721 INTEREST BEARING LIABILITIES: Deposits: Money market, interest bearing demand and savings deposits $ 6,085,142 $ 43,728 2.88 % $ 6,278,578 $ 51,884 3.31 % Time deposits 6,244,929 58,057 3.73 % 6,353,525 66,968 4.23 % Total interest bearing deposits 12,330,071 101,785 3.31 % 12,632,103 118,852 3.77 % FHLB borrowings 357,510 3,180 3.57 % 48,671 364 3.00 % Convertible notes, net 444 2 2.00 % 444 2 2.00 % Subordinated debentures, net 107,106 2,241 8.28 % 105,706 2,419 9.05 % Total interest bearing liabilities 12,795,131 107,208 3.36 % 12,786,924 121,637 3.82 % Noninterest bearing liabilities and equity: Noninterest bearing demand deposits 3,362,934 3,464,085 Other liabilities 255,725 253,223 Stockholders’ equity 2,293,446 2,224,489 Total liabilities and stockholders’ equity $ 18,707,236 $ 18,728,721 Net interest income/net interest spread (not annualized) $ 128,969 2.06 % $ 117,455 1.65 % Net interest margin 2.96 % 2.69 % Cost of deposits 2.60 % 2.96 % __________________________________ * Annualized (1)Interest income on loans includes loan fees. (2)Average balances of loans consist of loans receivable and loans held for sale. (3)Interest income and yields are not presented on a tax-equivalent basis. 68 Six Months Ended June 30, 2026 2025 Average Balance Interest Income/ Expense Average Yield/ Rate* Average Balance Interest Income/ Expense Average Yield/ Rate* (Dollars in thousands) INTEREST EARNINGS ASSETS: Loans(1) (2) $ 14,740,359 $ 417,297 5.71 % $ 13,944,180 $ 406,324 5.88 % Investment securities AFS and HTM(3) 2,185,663 39,577 3.65 % 2,138,471 33,661 3.17 % Interest earning cash and deposits at other banks 429,433 7,586 3.56 % 653,106 13,988 4.32 % FHLB stock and other investments 51,761 1,861 7.25 % 92,589 2,285 4.98 % Total interest earning assets 17,407,216 466,321 5.40 % 16,828,346 456,258 5.47 % Total noninterest earning assets 1,207,468 1,082,745 Total assets $ 18,614,684 $ 17,911,091 INTEREST BEARING LIABILITIES: Deposits: Money market, interest bearing demand and savings deposits $ 5,974,547 $ 85,150 2.87 % $ 5,867,886 $ 102,503 3.52 % Time deposits 6,301,092 118,090 3.78 % 6,015,687 129,934 4.36 % Total interest bearing deposits 12,275,639 203,240 3.34 % 11,883,573 232,437 3.94 % FHLB borrowings 321,423 5,588 3.51 % 84,835 720 1.71 % Convertible notes, net 444 4 2.00 % 444 4 2.00 % Subordinated debentures, net 106,931 4,463 8.30 % 105,539 4,825 9.09 % Total interest bearing liabilities 12,704,437 213,295 3.39 % 12,074,391 237,986 3.97 % Noninterest bearing liabilities and equity: Noninterest bearing demand deposits 3,355,046 3,404,738 Other liabilities 258,892 245,467 Stockholders’ equity 2,296,309 2,186,495 Total liabilities and stockholders’ equity $ 18,614,684 $ 17,911,091 Net interest income/net interest spread (not annualized) $ 253,026 2.01 % $ 218,272 1.50 % Net interest margin 2.93 % 2.62 % Cost of deposits 2.62 % 3.07 % __________________________________ * Annualized (1)Interest income on loans includes loan fees. (2)Average balances of loans consist of loans receivable and loans held for sale. (3)Interest income and yields are not presented on a tax-equivalent basis. 69 Changes in net interest income are a function of changes in interest rates and volumes of interest earning assets and interest bearing liabilities. The following table sets forth information regarding the changes in interest income and interest expense for the periods indicated. The total change for each category of interest earning assets and interest bearing liabilities is segmented into the change attributable to variations in volume (changes in volume multiplied by the old rate) and the change attributable to variations in interest rates (changes in rates multiplied by the old volume). Nonaccrual loans are included in average loans used to compute this table. Three Months Ended June 30, 2026 over June 30, 2025 Net Increase (Decrease) Change due to: Rate Volume (Dollars in thousands) INTEREST INCOME: Loans, including fees $ 15 $ (5,235) $ 5,250 Investment securities AFS and HTM 2,590 2,354 236 Interest earning cash and deposits at other banks (4,975) (1,291) (3,684) FHLB stock and other investments (545) 18 (563) Total interest income $ (2,915) $ (4,154) $ 1,239 INTEREST EXPENSE: Money market, interest bearing demand and savings deposits $ (8,156) $ (7,146) $ (1,010) Time deposits (8,911) (7,783) (1,128) FHLB borrowings 2,816 82 2,734 Subordinated debentures, net (178) (209) 31 Total interest expense $ (14,429) $ (15,056) $ 627 NET INTEREST INCOME $ 11,514 $ 10,902 $ 612 Six Months Ended June 30, 2026 over June 30, 2025 Net Increase (Decrease) Change due to: Rate Volume (Dollars in thousands) INTEREST INCOME: Loans, including fees $ 10,973 $ (11,786) $ 22,759 Investment securities AFS and HTM 5,916 5,159 757 Interest earning cash and deposits at other banks (6,402) (2,167) (4,235) FHLB stock and other investments (424) 810 (1,234) Total interest income $ 10,063 $ (7,984) $ 18,047 INTEREST EXPENSE: Money market, interest bearing demand and savings deposits $ (17,353) $ (18,264) $ 911 Time deposits (11,844) (17,793) 5,949 FHLB borrowings 4,868 1,330 3,538 Subordinated debentures, net (362) (423) 61 Total interest expense $ (24,691) $ (35,150) $ 10,459 NET INTEREST INCOME $ 34,754 $ 27,166 $ 7,588 70 Provision for Credit Losses The provision for credit losses reflects management’s assessment of the current period cost associated with credit risk inherent in the loan portfolio. The provision for credit losses for each period includes provision for credit loss on loans and provision for unfunded loan commitments. Provision for credit loss on loans is dependent upon many factors, including loan growth, net charge offs, changes in the composition of the loan portfolio, delinquencies, assessments by management, examinations of the loan portfolio, the value of the underlying collateral on problem loans, the general economic conditions in our market areas, and future projections of the economy. Specifically, the provision for credit loss on loans represents the amount charged against current period earnings to achieve an allowance for credit losses that, in management’s judgment, is adequate to absorb probable lifetime losses inherent in the loan portfolio. Provision for unfunded loan commitments is based on the estimated future funding of loan commitments. Periodic fluctuations in the provision for credit losses result from management’s assessment of the adequacy of the allowance for credit losses and allowance for unfunded loan commitments, and actual credit losses may vary in material respects from current estimates. If the allowances are inadequate, we may be required to record additional provisions, which may have a material and adverse effect on business, financial condition, and results of operations. The provision for credit losses includes both provision for credit loss on loans and provision for unfunded loan commitments. The provision for credit losses for the second quarter of 2026 was $6.8 million, a decrease of $4.3 million from $11.1 million for the same period of the prior year. The provision for credit losses for the six months ended June 30, 2026 was $15.4 million, a decrease of $472 thousand from $15.9 million in provision for credit losses for the same period of the prior year. The decrease in provision for credit losses for the three and six months ended June 30, 2026, compared with the same periods in 2025, was due to improvements in credit quality, particularly in the C&I loan portfolio, and the reversal of provision for unfunded loan commitments in 2026. The recapture of provision for unfunded loan commitments was $330 thousand and $880 thousand for the three and six months ended June 30, 2026, respectively, compared with a provision for unfunded loan commitments of $1.0 million and $600 thousand for the same periods of 2025, respectively. The year-over-year decrease in the provision for unfunded loan commitments was primarily due to the change in balances of unfunded loan commitments. 71 Noninterest Income Noninterest income consists primarily of service fees on deposit accounts, international service fees (fees received on trade finance letters of credit), wire transfer and foreign currency fees, other customer-driven income and fees, net gains on sales of SBA loans, net gains (losses) on sales of investment securities AFS, and other noninterest income. Noninterest income for the second quarter of 2026 was $18.9 million, compared with noninterest loss of $23.0 million for the same period of 2025, an increase of $41.8 million. Noninterest income for the six months ended June 30, 2026, was $35.8 million, compared with noninterest loss of $7.3 million for the same period of the prior year, an increase of $43.1 million. Noninterest income by category is summarized in the tables below: Three Months Ended June 30, Increase (Decrease) 2026 2025 Amount Percent (%) (Dollars in thousands) Service fees on deposit accounts $ 3,395 $ 3,106 $ 289 9.3 % International service, wire transfer and foreign currency fees 1,982 1,590 392 24.7 % Other customer-driven income and fees 5,739 4,733 1,006 21.3 % Net gains on sales of SBA loans 4,447 3,998 449 11.2 % Net gains (losses) on sales of investment securities AFS 1,172 (38,856) 40,028 N/A Other noninterest income 2,115 2,473 (358) (14.5) % Total noninterest income (loss) $ 18,850 $ (22,956) $ 41,806 N/A Six Months Ended June 30, Increase (Decrease) 2026 2025 Amount Percent (%) (Dollars in thousands) Service fees on deposit accounts $ 6,730 $ 6,027 $ 703 11.7 % International service, wire transfer and foreign currency fees 4,237 3,543 694 19.6 % Other customer-driven income and fees 10,616 8,479 2,137 25.2 % Net gains on sales of SBA loans 7,713 7,129 584 8.2 % Net gains (losses) on sales of investment securities AFS 1,776 (38,856) 40,632 N/A Other noninterest income 4,745 6,410 (1,665) (26.0) % Total noninterest income (loss) $ 35,817 $ (7,268) $ 43,085 N/A The year-over-year increase in noninterest income for the three and six months ended June 30, 2026, was primarily driven by net gains on sales of AFS securities compared with prior-year net losses on sales of AFS securities, and an increase in other customer-driven income and fees, partially offset by a decrease in other noninterest income. The noninterest loss for 2025 was primarily driven by the investment securities portfolio repositioning which resulted in a net loss of $38.9 million for the three and six months ended June 30, 2025. Customer related fees including service fees on deposit accounts; international service, wire transfer and foreign currency fees; and other customer-driven income and fees increased for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025. The increase in customer related fees were driven by the increases in deposit accounts and transactions and due to an increase in commercial loans. The increase in commercial borrowers resulted in an increase in business analysis fees and syndication related fees. 72 During the three and six months ended June 30, 2026, we sold $67.9 million and $120.9 million in SBA guaranteed loans, respectively, and recorded $4.4 million and $7.7 million, respectively, in net gains on sale of SBA loans. This compares with net gains of $4.0 million and $7.1 million for the three and six months ended June 30, 2025, respectively. $67.4 million and $117.3 million in SBA guaranteed loans were sold for the three and six months ended June 30, 2025, respectively. Noninterest income in the three and six months ended June 30, 2025, included $38.9 million of net losses on investment securities AFS related to the securities portfolio repositioning, which we consider a notable item. See the “General” section of this MD&A for a reconciliation of GAAP to non-GAAP financial measures. Other noninterest income decreased $358 thousand for the three months ended June 30, 2026, and $1.7 million for the six months ended June 30, 2026, compared with the same periods in 2025. The six-month decrease was mainly driven by a $1.5 million decrease in net gains on sale of other loans. Noninterest Expense Noninterest expense for the second quarter of 2026 was $98.5 million, a decrease of $11.0 million, or 10.1%, from $109.5 million for the second quarter of 2025. Noninterest expense for the six months ended June 30, 2026, was $192.9 million, a decrease of $415 thousand, or 0.2%, from $193.3 million for the same period of the prior year. Noninterest expense included merger-related costs, which we consider a notable item. Excluding notable items, noninterest expense for the second quarter of 2026 was $96.4 million compared with $92.2 million in the year-ago period. Excluding notable items, noninterest expense for the six months ended June 30, 2026, was $190.7 million compared with $173.5 million in the year-ago period. See the “General” section of this MD&A for a reconciliation of GAAP to non-GAAP financial measures. The breakdown of changes in noninterest expense by category is shown in the following tables: Three Months Ended June 30, Increase (Decrease) 2026 2025 Amount Percent (%) (Dollars in thousands) Salaries and employee benefits $ 56,901 $ 52,834 $ 4,067 7.7 % Occupancy, furniture and equipment 11,353 11,093 260 2.3 % Software and subscriptions 7,144 6,067 1,077 17.8 % Data and item processing 3,206 3,143 63 2.0 % Amortization of investments in affordable housing partnerships 2,554 2,430 124 5.1 % FDIC assessments 2,783 2,488 295 11.9 % Earned interest credit expense 2,501 3,310 (809) (24.4) % Merger-related costs 2,058 17,281 (15,223) (88.1) % Other noninterest expense 9,964 10,827 (863) (8.0) % Total noninterest expense $ 98,464 $ 109,473 $ (11,009) (10.1) % Six Months Ended June 30, Increase (Decrease) 2026 2025 Amount Percent (%) (Dollars in thousands) Salaries and employee benefits $ 113,124 $ 101,294 $ 11,830 11.7 % Occupancy, furniture and equipment 21,919 19,929 1,990 10.0 % Software and subscriptions 13,429 10,655 2,774 26.0 % Data and item processing 6,774 5,505 1,269 23.1 % Amortization of investments in affordable housing partnerships 5,028 4,391 637 14.5 % FDIC assessments 5,597 4,990 607 12.2 % FDIC special assessment (reversal) (58) — (58) N/A Earned interest credit expense 4,884 6,397 (1,513) (23.7) % Merger-related costs 2,292 19,800 (17,508) (88.4) % Other noninterest expense 19,930 20,373 (443) (2.2) % Total noninterest expense $ 192,919 $ 193,334 $ (415) (0.2) % 73 The year-over-year decrease in noninterest expense for the three and six months ended June 30, 2026, compared with the same periods of 2025, was primarily driven by decreases in merger-related costs and earned interest credit expense, partially offset by increases in salaries and employee benefits; software and subscriptions; occupancy, furniture and equipment; and data and item processing. We closed the acquisition of Territorial on April 2, 2025, and the year-to-date second quarter of 2025 included one quarter of operating expenses related to the Territorial franchise, compared with two quarters for 2026. Salaries and employee benefits expense increased $4.1 million, or 7.7%, for the second quarter of 2026, compared with the same period of 2025, and increased $11.8 million, or 11.7%, for the six months ended June 30, 2026, compared with the same period in 2025. The year-over-year increase in salaries and employee benefits was due to an increase in headcount following the 2025 Territorial acquisition, as well as additional hires in 2026. The number of full-time equivalent employees was 1,432 and 1,416 at June 30, 2026 and 2025, respectively. The increase in occupancy, furniture and equipment, software and subscriptions, and data and item processing for the three and six months ended June 30, 2026 compared to prior periods largely reflect the addition of expenses that resulted from the acquisition of Territorial which was completed on April 2, 2025. Earned interest credits are provided to certain commercial depositors to help offset deposit service charges incurred. The earned interest credits are tied to short-term interest rates, and accordingly, earned interest credit expense decreased with 75 basis point drop in the Federal Funds target rate since the first quarter of 2025. Earned interest credit expense decreased $809 thousand, or 24.4%, for the second quarter of 2026, compared with the same period of 2025, and decreased $1.5 million, or 23.7%, for the six months ended June 30, 2026, compared with the year-ago period. Merger-related costs decreased $15.2 million, or 88.1%, for the second quarter of 2026, compared with the same period of 2025, and decreased $17.5 million, or 88.4%, for the six months ended June 30, 2026, compared with the same period in 2025. Merger-related costs mainly comprised employee retention bonuses and professional fees related to the Territorial acquisition, which was completed on April 2, 2025. In addition, we incurred $1.9 million in merger expenses related to the SMBC acquisition in the second quarter of 2026. See Note 15 - “Acquisitions” of the Notes to Consolidated Financial Statements for additional information regarding the Merger and SMBC acquisition. Provision for Income Taxes Income tax provision expense was $9.6 million and $17.9 million for the three and six months ended June 30, 2026, respectively, compared with an income tax benefit of $1.3 million and income tax provision of $5.4 million for the same periods of 2025, respectively. The effective income tax rate for the three and six months ended June 30, 2026, was 22.44% and 22.28%, respectively, compared with 5.05% and 305.51% for the same periods of 2025, respectively. The year-over-year changes in the income tax provision or benefit, as well as the effective tax rates, for the three and six months ended June 30, 2026, compared with the three and six months ended June 30, 2025, reflected the impact legislative changes in a significant state jurisdiction enacted and the impact of merger-related costs and securities portfolio sales in the second quarter of 2025. We invest in affordable housing partnerships and receive tax credits that reduce our overall effective tax rate. Amortization of investments in affordable housing partnerships is recorded in noninterest expense based on benefit schedules of individual investment projects under the equity method of accounting. The benefit schedules show tax deductions investors can take each year. We amortize the initial cost of the investments in affordable housing partnerships. This amortization expense is more than offset by tax credits received, which reduce our tax provision expense dollar for dollar, and the tax benefits related to any tax losses generated through the affordable housing project’s expenditures. For the three and six months ended June 30, 2026, total tax credits related to our investment in affordable housing partnerships were approximately $2.2 million and $4.5 million, respectively. This compares with approximately $2.3 million and $4.6 million in tax credits related to our investment in affordable housing partnerships for the same periods in 2025, respectively. In addition to affordable housing partnerships, we invest in projects that qualify for renewable energy tax credits. Amortization of investments in renewable energy projects is recorded as a part of income tax expense under the proportional amortization method of accounting. For the three months ended June 30, 2026 and 2025, the total generated renewable energy tax credits and benefits was $6.3 million and $350 thousand, respectively. This was partially offset by amortization on the investments, which was $5.4 million and $319 thousand for the three months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026 and 2025, the total generated renewable energy tax credits and benefits was $14.4 million and $700 thousand, respectively. This was partially offset by amortization on the investments, which was $12.4 million and $638 thousand for the six months ended June 30, 2026 and 2025, respectively. 74 Financial Condition At June 30, 2026, total assets were $18.99 billion, an increase of $460.3 million, or 2.5%, from $18.53 billion at December 31, 2025. The increase in total assets was primarily due to increases in loans receivable, investment securities and cash and cash equivalents during the six months ended June 30, 2026. Investment Securities Portfolio At June 30, 2026, we had $1.95 billion in investment securities AFS, compared with $1.83 billion at December 31, 2025. The net unrealized loss on the investment securities AFS at June 30, 2026, was $200.5 million, compared with a net unrealized loss on securities AFS of $185.3 million at December 31, 2025. The year-to-date increase in net unrealized loss position reflected movements in market interest rates during the period. At June 30, 2026, we had $232.4 million in investment securities HTM, compared with $239.8 million at December 31, 2025. We have the ability and intent to hold securities classified as HTM to maturity. During the six months ended June 30, 2026, $493.3 million in investment securities was purchased, $156.0 million in investment securities was sold, $108.7 million in investment securities was paid down, and $111.0 million in investment securities was called or matured. We performed an analysis on our investment securities in unrealized loss positions at June 30, 2026 and December 31, 2025, and determined that an allowance for credit losses was not required for investment securities AFS or HTM. The majority of our investment portfolio consisted of securities issued by U.S. Government agencies or U.S. Government sponsored enterprises, which were determined to have a zero loss expectation. At June 30, 2026, we also had two asset-backed securities, five corporate securities, and 28 municipal bonds not issued by U.S. Government agencies or U.S. Government sponsored enterprises that were in unrealized loss positions. Based on our analysis of these investment securities, we concluded a credit loss did not exist due to the strength of the issuers, high bond ratings, and because full payment of principal and interest is expected. Loans Receivable At June 30, 2026, loans receivable totaled $14.94 billion, an increase of $240.5 million, or 1.6%, from $14.70 billion at December 31, 2025. The following table summarizes our loan portfolio by amount and percentage of total loans outstanding in each loan segment as of the dates indicated: June 30, 2026 December 31, 2025 Amount Percent Amount Percent (Dollars in thousands) Loan portfolio composition CRE loans $ 8,516,724 57 % $ 8,494,508 58 % C&I loans 3,878,325 26 % 3,711,875 25 % Residential mortgage loans 2,512,166 17 % 2,440,456 17 % Consumer and other loans 34,305 — % 54,173 — % Total loans receivable, net of deferred costs and fees 14,941,520 100 % 14,701,012 100 % Allowance for credit losses (153,218) (156,661) Loans receivable, net of allowance for credit losses $ 14,788,302 $ 14,544,351 75 The following tables present the segmentation by property type and geography of our largest loan segment, CRE loans, at June 30, 2026 and December 31, 2025. June 30, 2026 December 31, 2025 Amount % Average Loan Size Weighted Average LTV(1) Amount % Average Loan Size Weighted Average LTV(1) (Dollars in thousands) Multi-tenant retail $ 1,585,528 19 % $ 2,493 42 % $ 1,618,715 19 % $ 2,506 42 % Industrial warehouses 1,303,250 15 % 2,682 42 % 1,258,703 15 % 2,553 39 % Gas stations and car washes 1,177,756 14 % 2,038 51 % 1,176,491 14 % 2,021 50 % Multifamily 1,171,422 14 % 2,386 60 % 1,191,145 14 % 2,363 59 % Hotels/motels 820,725 10 % 2,236 42 % 821,845 9 % 2,277 43 % Mixed-use facilities 728,108 8 % 2,040 49 % 691,821 8 % 1,855 49 % Single-tenant retail 631,319 7 % 1,455 46 % 658,440 8 % 1,460 46 % Office 348,708 4 % 2,076 52 % 331,603 4 % 1,962 54 % All other 749,908 9 % 1,596 41 % 745,745 9 % 1,528 41 % Total CRE loans $ 8,516,724 100 % 2,136 47 % $ 8,494,508 100 % 2,089 46 % CRE loans owner occupied $ 2,806,072 33 % $ 2,459 45 % $ 2,692,265 32 % $ 2,305 45 % CRE loans non-owner occupied 5,710,652 67 % 2,007 47 % 5,802,243 68 % 2,001 47 % __________________________________ (1) Weighted average loan-to-value (“LTV”): LTVs are based on collateral value which utilizes the most recent available appraisal and property-specific data, including submarket appreciation or depreciation, and changes to vacancy, debt service coverage or rent per square foot. June 30, 2026 December 31, 2025 Amount % Amount % (Dollars in thousands) CRE loans by geography Southern California $ 4,383,177 51 % $ 4,558,082 54 % Northern California 643,091 8 % 676,501 8 % California 5,026,268 59 % 5,234,583 62 % New York 1,231,840 15 % 1,110,617 13 % Texas 685,168 8 % 647,729 8 % New Jersey 365,566 4 % 352,799 4 % Washington 168,263 2 % 165,653 2 % Illinois 107,741 1 % 115,787 1 % Other states 931,878 11 % 867,340 10 % Total $ 8,516,724 100 % $ 8,494,508 100 % Lines of credit or loan commitments to business customers are normally made for a period of three years or less. The same credit policies are used in making commitments and conditional obligations as for providing loan facilities to customers. Annual reviews of such commitments are performed prior to renewal. The following table shows loan commitments and letters of credit outstanding as of the dates indicated: June 30, 2026 December 31, 2025 (Dollars in thousands) Unfunded commitments to extend credit $ 2,123,776 $ 2,200,436 Standby letters of credit 198,022 154,067 Other commercial letters of credit 39,902 18,848 Total loan commitments and letters of credit $ 2,361,700 $ 2,373,351 76 Nonperforming Assets Nonperforming assets, which consist of nonaccrual loans, accruing delinquent loans past due 90 days or more, and OREO, totaled $112.9 million at June 30, 2026, compared with $136.1 million at December 31, 2025, a decrease of 17.1%. The year-to-date decrease in nonperforming loans was largely driven by the payoff of a large CRE nonaccrual loan during the first quarter of 2026 and a reduction in accruing delinquent loans past due 90 days or more during the second quarter of 2026. The ratio of nonperforming assets to total assets decreased to 0.59% at June 30, 2026, compared with 0.73% at December 31, 2025. Nonaccrual loans to loans receivable was 0.75% at June 30, 2026, down from 0.90% at December 31, 2025. The following table summarizes the composition of our nonperforming assets as of the dates indicated: June 30, 2026 December 31, 2025 (Dollars in thousands) Nonaccrual loans (1) $ 111,973 $ 131,747 Accruing delinquent loans past due 90 days or more 515 3,943 Total nonperforming loans 112,488 135,690 OREO 365 365 Total nonperforming assets $ 112,853 $ 136,055 Nonaccrual loans to loans receivable 0.75 % 0.90 % Nonperforming loans to loans receivable 0.75 % 0.92 % Nonperforming assets to total assets 0.59 % 0.73 % Allowance for credit losses to nonaccrual loans 136.83 % 118.91 % Allowance for credit losses to nonperforming loans 136.21 % 115.46 % Allowance for credit losses to nonperforming assets 135.77 % 115.15 % __________________________________ (1) Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $17.1 million at June 30, 2026, and $15.6 million at December 31, 2025. Allowance for Credit Losses The ACL was $153.2 million at June 30, 2026, compared with $156.7 million at December 31, 2025. The ACL coverage ratio was 1.03% and 1.07% of loans receivable at June 30, 2026 and December 31, 2025, respectively. The following table reflects the allocation of the ACL by loan segment and the ratio of total ACL to total loans as of the dates indicated: June 30, 2026 December 31, 2025 (Dollars in thousands) CRE loans $ 94,034 $ 85,144 C&I loans 48,588 60,172 Residential mortgage loans 10,247 10,557 Consumer and other loans 349 788 Total $ 153,218 $ 156,661 Allowance for credit losses to loans receivable 1.03 % 1.07 % 77 The decrease in ACL at June 30, 2026, compared with December 31, 2025, was due to a decrease in ACL for C&I loans, which was due to overall improvements in credit metrics for C&I loans as a result of loan sales and charge offs made during the first half of 2026 to resolve problem loans. The ACL for CRE loans increased from December 31, 2025 to June 30, 2026, primarily driven by increased refinance risk and downgrade of CRE loans from December 31, 2025 to June 30, 2026. The third-party economic forecast used in the calculation at June 30, 2026, projected slightly higher GDP growth and growth in the CRE price index, and unemployment rates remained largely unchanged relative to the forecast used at December 31, 2025. The following table presents the provisions for credit losses on loans, the amount of loans charged off, and the recoveries on loans previously charged off, together with the balance of the ACL at the beginning and end of each period, the balance of average loans and loans receivable outstanding, and related ratios at the dates and for the periods indicated: At or for the Three Months Ended June 30, At or for the Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in thousands) LOANS: Average loans $ 14,790,642 $ 14,427,785 $ 14,740,359 $ 13,944,180 Loans receivable (end of period) $ 14,941,520 $ 14,438,491 $ 14,941,520 $ 14,438,491 ALLOWANCE: Balance, beginning of period $ 155,114 $ 147,412 $ 156,661 $ 150,527 Less loan charge offs: CRE loans (440) (67) (1,347) (972) C&I loans (8,759) (13,748) (18,921) (21,303) Consumer and other loans — (999) — (1,087) Total loan charge offs (9,199) (14,814) (20,268) (23,362) Plus loan recoveries: CRE loans 51 910 141 916 C&I loans 103 1,919 334 2,090 Consumer and other loans 49 15 50 71 Total loan recoveries 203 2,844 525 3,077 Net loan charge offs (8,996) (11,970) (19,743) (20,285) Initial allowance for PSL and PCD loans acquired — 3,971 — 3,971 Provision for credit losses on loans 7,100 10,092 16,300 15,292 Balance, end of period $ 153,218 $ 149,505 $ 153,218 $ 149,505 Net loan charge offs to average loans* 0.24 % 0.33 % 0.27 % 0.29 % Allowance for credit losses to loans receivable at end of period 1.03 % 1.04 % 1.03 % 1.04 % __________________________________ * Annualized Net loan charge offs as a percentage of average loans were 0.24% and 0.27%, annualized, for the three and six months ended June 30, 2026, respectively, compared with net loans charge offs of 0.33% and 0.29%, respectively, for the same periods in 2025. Net loan charge offs for the three and six months ended June 30, 2026, primarily reflected C&I loan net charge offs of $8.7 million and $18.6 million, respectively. We believe the ACL at June 30, 2026 was adequate to absorb current expected lifetime losses in the loan portfolio. However, there is no assurance that actual losses will not exceed the current estimated credit losses. Among other things, if the effects of tariffs, global trade tensions, inflation, potential economic recession, unrest in the Middle East, and the wars in the Gaza Strip and Ukraine are worse than currently expected, or if the effects are prolonged, actual losses could exceed the estimated credit losses, which could have a material and adverse effect on our financial condition and results of operations. 78 At June 30, 2026, we had $44.4 million in accrued interest receivables on loans, compared with $43.5 million at December 31, 2025. Investments in Tax Credit Structures At June 30, 2026, we had $31.7 million in investments in affordable housing partnerships, compared with $27.9 million at December 31, 2025. The increase in investments in affordable housing partnerships primarily reflected investment in affordable housing partnerships of $8.8 million, partially offset by amortization during the six months ended June 30, 2026. Off-balance sheet commitments to fund investments in affordable housing partnerships totaled $36.7 million and $20.5 million at June 30, 2026 and December 31, 2025, respectively. Investments in affordable housing partnerships provide low-income housing tax credits. At June 30, 2026, we had $21.7 million in investments in renewable energy tax credits on the Consolidated Statements of Financial Condition, compared with $12.4 million at December 31, 2025. These investments were recorded as part of other assets. At June 30, 2026 and December 31, 2025, unfunded commitments were $29.0 million and $12.4 million, respectively, which were recorded in other liabilities. The increase in both investments in renewable energy tax credits and their unfunded commitments reflected new investments made. During the six months ended June 30, 2026, we made new commitments to invest $25.0 million in renewable energy tax credit investments. Deposits, Borrowings, Convertible Notes, and Subordinated Debentures Deposits Deposits are the primary source of funds used in lending and investment activities. At June 30, 2026, total deposits were $15.88 billion, an increase of $273.4 million, or 1.8%, from $15.60 billion at December 31, 2025. The following table sets forth the balances of our deposits by category for the periods indicated: June 30, 2026 December 31, 2025 Balance Percent Balance Percent (Dollars in thousands) Demand, noninterest bearing $ 3,548,452 22 % $ 3,371,759 22 % Money market, interest bearing demand and savings 6,079,728 38 % 5,856,373 37 % Time deposits 6,248,363 40 % 6,375,011 41 % Total deposits $ 15,876,543 100 % $ 15,603,143 100 % At June 30, 2026, we had $897.9 million in brokered deposits and $300.0 million in California State Treasurer deposits, compared with $902.0 million in brokered deposits and $300.0 million in California State Treasurer deposits at December 31, 2025. The California State Treasurer time deposits at June 30, 2026, had original maturities of six months, a weighted average interest rate of 3.68%, and were collateralized with a $330.0 million letter of credit issued by the FHLB. At June 30, 2026, time deposits owned by state and local governments in Hawaii were $494.9 million, and were collateralized by investment securities with an aggregate fair value of $216.1 million, and a letter of credit issued by the FHLB for $285.0 million. At June 30, 2026, time deposits of more than $250 thousand totaled $3.29 billion, compared with $3.21 billion at December 31, 2025. The Bank’s estimated insured deposits at June 30, 2026, were equivalent to approximately 60% of the Bank’s total deposits, compared with approximately 62% at December 31, 2025. The Bank’s estimated uninsured deposits at June 30, 2026, totaled $6.42 billion (40% of deposits), compared with $5.98 billion (38% of deposits) at December 31, 2025. Uninsured deposits are estimated based on the portion of account balances in excess of FDIC insurance limits. 79 The following is a schedule of time deposit maturities at June 30, 2026: June 30, 2026 Balance Percent (Dollars in thousands) Three months or less $ 2,279,586 37 % Over three months through six months 1,632,039 26 % Over six months through nine months 966,585 15 % Over nine months through twelve months 637,467 10 % Over twelve months 732,686 12 % Total time deposits $ 6,248,363 100 % FHLB and FRB Borrowings and Other Borrowings We utilize FHLB and FRB borrowings as a secondary source of funds in addition to deposits, which we consider our primary source of funds. FHLB advances are typically secured by pledged loans and/or securities with a market value at least equal to the outstanding advances plus our investment in FHLB stock. At June 30, 2026, borrowings totaled $472.0 million, consisting entirely of FHLB borrowings, compared with $284.9 million borrowings at December 31, 2025. At June 30, 2026 and December 31, 2025, the weighted average remaining maturity of total FHLB borrowings was 1.2 years and 1.9 years, respectively. The weighted average coupon rate for FHLB borrowings was 3.67% and 3.32% at June 30, 2026 and December 31, 2025, respectively. We did not have federal funds purchased at June 30, 2026, and December 31, 2025. Subordinated Debentures Trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in the related indentures for the securities. The trusts used the net proceeds from their respective offerings to purchase a like amount of subordinated debentures issued by us. The subordinated debentures are the sole assets of the trusts. Our obligations under the subordinated debentures and related documents, taken together, constitute a full and unconditional guarantee by us of the obligations of the trusts. The subordinated debentures totaled $111.2 million at June 30, 2026, and $110.5 million at December 31, 2025. The trust preferred securities are mandatorily redeemable upon the maturity of the subordinated debentures, or upon earlier redemption as provided in the indentures. We have the right to redeem the subordinated debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. See Note 8 - “Convertible Notes and Subordinated Debentures” of the Notes to Consolidated Financial Statements for additional information regarding the subordinated debentures issued. Off-Balance-Sheet Activities and Contractual Obligations We routinely engage in activities that involve, to varying degrees, elements of risk that are not reflected, in whole or in part, in the Consolidated Financial Statements. These activities are part of our normal course of business and include traditional off-balance-sheet credit-related financial instruments, interest rate swap contracts, foreign exchange contracts, commitments related to affordable housing partnership investments accounted under the equity method, and long-term debt. Traditional off-balance-sheet credit-related financial instruments are primarily commitments to extend credit and standby letters of credit. These activities could require us to make cash payments to third parties if certain specified future events occur. The contractual amounts represent the extent of our exposure in these off-balance-sheet activities. These activities are necessary to meet the financing needs of our customers. We enter into interest rate contracts under which we are required to either receive cash from or pay cash to counterparties depending on changes in interest rates. We utilize interest rate contracts, interest rate floors, and interest rate caps to help manage the risk of changing interest rates. We also sell interest rate contracts to certain adjustable rate commercial loan customers to fix the interest rate on their floating rate loans. When the fixed rate interest rate contract is originated with the customer, an identical offsetting interest rate contract is also entered into by us with a correspondent bank. We have outstanding risk participation agreements that are part of syndicated loan transactions in which we participated to earn additional fee income. Risk participation agreements are credit derivatives not designated as hedges, in which we share in the risk related to the interest rate swap on participated loans. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. 80 We enter into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. The first type of derivative, an interest rate lock commitment, is a commitment to originate loans whereby the interest rate on the loan is determined prior to funding. To mitigate interest rate risk on these rate lock commitments, we also enter into forward commitments, or commitments to deliver residential mortgage loans on a future date, which are also considered derivatives. The net change in the fair value of derivatives represents income recorded from changes in fair value for these mortgage derivative instruments. We invest in the equity of certain limited partnerships or limited liability companies that typically are associated with affordable housing partnerships and renewable energy projects that generate low-income tax credits, investment tax credits, and/or CRA credits. The unfunded commitments on affordable housing partnerships are off-balance sheet liabilities and are funded based on funding schedules or as called by the limited liability companies. We do not anticipate that our current off-balance-sheet activities will have a material impact on our future results of operations or our financial condition. Further information regarding our financial instruments with off-balance-sheet risk can be found in Item 3 “Quantitative and Qualitative Disclosures About Market Risk.” Stockholders’ Equity and Regulatory Capital Historically, our primary source of capital has been the retention of earnings, net of interest payments on subordinated debentures and convertible notes and dividend payments to stockholders. We seek to maintain capital at a level sufficient to assure our stockholders, customers, and regulators that Hope Bancorp and the Bank are financially sound. For this purpose, we perform ongoing assessments of capital-related risks, components of capital, as well as projected sources and uses of capital in conjunction with projected increases in assets and levels of risks. Total stockholders’ equity was $2.30 billion and $2.28 billion at June 30, 2026 and December 31, 2025, respectively. During the six months ended June 30, 2026, stockholders’ equity increased by $12.6 million due to net income earned of $62.6 million, and an increase in additional paid-in capital consisting of $1.9 million in stock-based compensation, partially offset by cash dividends paid of $35.8 million, repurchases of treasury stock of $8.7 million, and an increase in accumulated other comprehensive loss of $7.3 million. The increase in accumulated other comprehensive loss from December 31, 2025 to June 30, 2026, primarily reflected an increase in unrealized losses on our investment securities AFS due to changes in market interest rates. In January 2022, our Board of Directors approved a stock repurchase plan that authorized management to repurchase up to $50.0 million of common stock. Stock repurchases through the plan may be executed through various means, including, without limitation, open market transactions, privately negotiated transactions or by other means as determined by management and in accordance with SEC rules and regulations. We had $26.6 million remaining of the $50.0 million stock repurchase plan at June 30, 2026. During the six months ended June 30, 2026, we repurchased 772,726 shares, equivalent to 0.6% of shares outstanding, at an average price of $11.28 per share, for a total of $8.7 million. 81 At June 30, 2026 and December 31, 2025, the most recent regulatory notification generally categorized the Bank as “well capitalized” under the general regulatory framework for Prompt Corrective Action. To be generally categorized as “well-capitalized”, the Bank must maintain the common equity Tier 1 capital, total capital, Tier 1 capital, and Tier 1 leverage capital ratios as set forth in the tables below. June 30, 2026 Actual Ratio Required To Be Well-Capitalized Excess Over Well-Capitalized Amount Ratio (Dollars in thousands) Hope Bancorp, Inc. Common equity tier 1 capital (to risk-weighted assets) $ 1,920,992 12.27 % N/A N/A Tier 1 capital(to risk-weighted assets) $ 2,028,322 12.95 % N/A N/A Total capital(to risk-weighted assets) $ 2,183,720 13.95 % N/A N/A Leverage capital(to average assets) $ 2,028,322 11.07 % N/A N/A Bank of Hope Common equity tier 1 capital (to risk-weighted assets) $ 1,980,731 12.65 % 6.50 % 6.15 % Tier 1 capital(to risk-weighted assets) $ 1,980,731 12.65 % 8.00 % 4.65 % Total capital(to risk-weighted assets) $ 2,136,129 13.65 % 10.00 % 3.65 % Leverage capital(to average assets) $ 1,980,731 10.82 % 5.00 % 5.82 % December 31, 2025 Actual Ratio Required To Be Well-Capitalized Excess Over Well-Capitalized Amount Ratio (Dollars in thousands) Hope Bancorp, Inc. Common equity tier 1 capital (to risk-weighted assets) $ 1,904,868 12.27 % N/A N/A Tier 1 capital(to risk-weighted assets) $ 2,011,484 12.96 % N/A N/A Total capital(to risk-weighted assets) $ 2,171,256 13.99 % N/A N/A Leverage capital(to average assets) $ 2,011,484 11.05 % N/A N/A Bank of Hope Common equity tier 1 capital (to risk-weighted assets) $ 1,989,051 12.82 % 6.50 % 6.32 % Tier 1 capital(to risk-weighted assets) $ 1,989,051 12.82 % 8.00 % 4.82 % Total capital(to risk-weighted assets) $ 2,148,823 13.85 % 10.00 % 3.85 % Leverage capital(to average assets) $ 1,989,051 10.93 % 5.00 % 5.93 % 82 Liquidity Management Liquidity risk is the risk of reduction in our earnings or capital that would result if we were not able to meet our obligations when they come due without incurring unacceptable losses. Liquidity risk includes the risk of unplanned decreases or changes in funding sources and changes in market conditions that affect our ability to liquidate assets quickly and with minimum loss of value. Factors considered in liquidity risk management are the stability of the deposit base; the marketability, maturity, and pledging of our investments; the availability of alternative sources of funds; and our demand for credit. The objective of our liquidity management is to have funds available to meet cash flow requirements arising from fluctuations in deposit levels and the demands of daily operations, which include funding of securities purchases, providing for customers’ credit needs, and ongoing repayment of borrowings. Our primary sources of liquidity are derived from financing activities, which include deposits, federal funds facilities, and borrowings from the FHLB and the FRB’s Discount Window. These funding sources are augmented by payments of principal and interest on loans and securities, proceeds from sale of loans, and the liquidation or sale of securities from our available for sale portfolio or sale of equity investments. Primary uses of funds include withdrawal of and interest payments on deposits, originations of loans, purchases of investment securities, and payment of operating expenses. At June 30, 2026, our total available borrowing capacity, cash and cash equivalents, and unpledged securities totaled $8.09 billion, compared with $8.39 billion at December 31, 2025. At June 30, 2026, our borrowing capacity comprised $4.04 billion from the FHLB ($3.57 billion unused and available to borrow), $1.64 billion from the FRB (entirely unused and available to borrow), and $291.2 million of Fed funds facilities with other banks (entirely unused). At June 30, 2026, our total remaining available borrowing capacity was $5.50 billion. In addition to these lines, cash and cash equivalents totaled $640.4 million, and unpledged investment securities AFS amounted to $1.95 billion. At times we maintain a portion of our liquid assets in interest earning cash deposits with other banks, overnight federal funds sold to other banks, and in investment securities AFS that are not pledged. Our liquid assets consist of cash and cash equivalents, interest earning cash deposits with other banks, liquid investment securities AFS, and loan repayments within 30 days. Liquid assets totaled $2.38 billion and $2.19 billion at June 30, 2026 and December 31, 2025, respectively. Our liquidity ratio, or total liquid assets as a percentage of total assets, at June 30, 2026, totaled 12.5%, compared with 11.8% at December 31, 2025. Cash and cash equivalents totaled $640.4 million at June 30, 2026 compared to $560.1 million at December 31, 2025. We believe our liquidity sources are sufficient to meet all reasonably foreseeable short-term and intermediate-term needs. 83