The following discussion provides information about the results of operations, financial condition, liquidity and capital resources of CVB Financial Corp. (referred to herein on an unconsolidated basis as “CVB” and on a consolidated basis as “we,” “our” or the “Company”) and its wholly owned bank subsidiary, Citizens Business Bank, National Association (the “Bank” or “CBB”). This information is intended to facilitate the understanding and assessment of significant changes and trends related to our financial condition and the results of our operations. This discussion and analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”) and the unaudited condensed consolidated financial statements and accompanying notes presented elsewhere in this report. CRITICAL ACCOUNTING POLICIES The discussion and analysis of the Company’s unaudited condensed consolidated financial statements are based upon the Company’s unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions or conditions. Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and are essential to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following is a summary of the more judgmental and complex accounting estimates and principles. In each area, we have identified the variables we believe are most important in our estimation process. We utilize information available to us to make the necessary estimates to value the related assets and liabilities. Actual performance that differs from our estimates and future changes in the key variables and information could change future valuations and impact the results of operations. •Allowance for Credit Losses (“ACL”) •Business Combinations •Valuation and Recoverability of Goodwill Our significant accounting policies are described in greater detail in our 2025 Form 10-K in the “Critical Accounting Policies” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 3 – Summary of Significant Accounting Policies included in the 2025 Form 10-K. Acquisition of Heritage Commerce Corp. On April 17, 2026, the Company completed its previously announced acquisition of Heritage Commerce Corp and its wholly-owned banking subsidiary, Heritage Bank of Commerce (collectively, “Heritage”). The systems conversion was also completed during the second quarter of 2026. The acquisition was an all-stock transaction accounted for under the acquisition method of accounting as a business combination pursuant to the Agreement and Plan of Reorganization and Merger, dated December 17, 2025 (the “Merger Agreement”), by and between CVB and Heritage. Under the terms of the Merger Agreement, Heritage shareholders received 0.65 shares of the Company’s common stock for each share of Heritage common stock owned. Total merger consideration was $845.5 million. Upon closing, the Company acquired loans with a fair value of $3.4 billion and investment securities with a fair value of $1.0 billion, and assumed $1.2 billion of noninterest-bearing deposits, $3.5 billion of interest-bearing deposits, and $38.7 million of subordinated debt. The preliminary purchase price allocation resulted in $450.7 million of intangible assets, consisting of a core deposit intangible asset of $116.6 million and goodwill of $334.1 million. For additional information on the acquisition of Heritage, see Note 4 - Business Combination. 45 OVERVIEW The Company's financial results for the three and six months ended June 30, 2026 reflect the impact of the acquisition of Heritage completed on April 17, 2026. For the second quarter of 2026, we reported net earnings of $48.3 million, or diluted earnings per share of $0.29, compared with $50.6 million, or diluted earnings per share of $0.37 for the second quarter of 2025. Net earnings for the second quarter of 2026 generated an annualized return on average equity (“ROAE”) of 6.41%, an annualized return on average tangible common equity (“ROATCE”) of 10.85%, and an annualized return on average assets (“ROAA”) of 0.97%, compared with 9.06%, 14.08%, and 1.34%, respectively, for the second quarter of 2025. Our net interest margin (“NIM”), on a tax equivalent basis, was 3.72% for the second quarter of 2026, while our efficiency ratio was 63.75%. Excluding acquisition expense and provision for unfunded commitments, our adjusted efficiency ratio was 43.88% for the second quarter of 2026, compared with 45.55% for the second quarter of 2025. ROATCE and the adjusted efficiency ratio are non-GAAP financial measures. For additional details, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — GAAP to Non-GAAP Reconciliations in this Form 10-Q. For the six months ended June 30, 2026, net earnings was $99.3 million, or diluted earnings per share of $0.65, compared with $101.7 million, or diluted earnings per share of $0.73 for the six months ended June 30, 2025. Net earnings for the six months ended June 30, 2026 produced an annualized ROAE of 7.47%, ROATCE of 11.99%, and ROAA of 1.13% compared with 9.18%, 14.29%, and 1.35%, respectively, for the same period last year. Our NIM, on a tax equivalent basis, was 3.60% for six months ended June 30, 2026, while our efficiency ratio was 56.15%, compared with a NIM of 3.31% and an efficiency ratio of 46.12% for the same period last year. Excluding acquisition expense and the provision for unfunded commitments, our adjusted efficiency ratio was 44.19% for the six months ended June 30, 2026, compared with 45.92% for the same period last year. For the second quarter of 2026, net interest income was $162.4 million, an increase of $50.8 million, or 45.5%, from the second quarter of 2025. The increase was primarily attributable to a $57.9 million increase in interest income driven by a $4.01 billion increase in average interest-earning assets and a 34 basis point increase in the yield on earning assets. The increase in interest income was offset by a $7.1 million increase in interest expense attributable to a $2.83 billion increase in average interest-bearing deposits and customer repurchase agreements. For the six months ended June 30, 2026, net interest income was $280.3 million, an increase of $58.2 million, or 26.2%, compared with the same period last year. Noninterest income for the second quarter of 2026 was $17.0 million, an increase of $2.3 million, or 15.4%, from $14.7 million for the second quarter of 2025, reflecting the impact of the Heritage acquisition. The increase included $468,000 in trust and investment services, $377,000 in service charges on deposit accounts, $264,000 in Bank-owned life insurance (“BOLI”) income, and $1.2 million in other income. For the six months ended June 30, 2026, noninterest income was $31.3 million, an increase of $316,000, or 1.0%, from $31.0 million from the same period last year. Noninterest expense for the second quarter of 2026 was $114.4 million, an increase of $56.8 million, or 98.7%, from $57.6 million for the second quarter of 2025. The increase was primarily attributable to the Heritage acquisition and the related addition of operations, personnel, and banking centers. During the second quarter of 2026, the Company incurred $31.4 million of acquisition expenses and recorded an initial provision of $4.3 million for unfunded loan commitments acquired in the transaction. Excluding acquisition expense and the provision for unfunded loan commitments, the increase in noninterest expense compared with the second quarter of 2025 was $21.2 million. For the six months ended June 30, 2026, noninterest expense was $174.9 million, an increase of $58.2 million, or 49.9% from the same period last year. At June 30, 2026, total assets were $21.18 billion, an increase of $5.55 billion, or 35.52%, from total assets of $15.63 billion at December 31, 2025. Interest-earning assets were $18.69 billion at June 30, 2026, an increase of $4.69 billion, or 33.56%, compared with $13.99 billion at December 31, 2025. The increase in interest-earning assets was primarily due to a $3.32 billion increase in total loans, a $728.0 million increase in cash and cash equivalents, and a $722.8 million increase in investment securities. The increase in total assets primarily reflected the impact of the Heritage acquisition completed on April 17, 2026, which added approximately $5.41 billion of assets, partially offset by balance sheet optimization activities during the quarter. 46 Total investment securities were $5.68 billion at June 30, 2026, an increase of $722.8 million, or 14.6%, from $4.95 billion at December 31, 2025. The increase was primarily attributable to $1.02 billion of investment securities acquired in the Heritage acquisition, of which $519.0 million was retained and $488.2 million were sold upon completion of the merger as part of the Company's balance sheet optimization strategy, as well as approximately $511.5 million of purchases of AFS securities during the second quarter of 2026. At June 30, 2026, investment securities held-to-maturity (“HTM”) totaled $2.22 billion, a decrease of $51.9 million, or 2.3%, from $2.27 billion at December 31, 2025. At June 30, 2026, available-for-sale (“AFS”) investment securities totaled $3.46 billion, inclusive of a pre-tax net unrealized loss of $323.5 million. AFS securities increased by $774.7 million, or 28.87%, from $2.68 billion at December 31, 2025. The pre-tax unrealized loss increased by $15.7 million from December 31, 2025. Our average tax equivalent yield on investments was 2.74% for the second quarter of 2026, compared to 2.62% for the second quarter of 2025. Fair value hedging transactions with $700 million notional pay-fixed interest rate swaps, had a fair value which totaled $3.8 million and was reflected as an asset at June 30, 2026. The fair value of these instruments totaled $8.6 million and were reflected as a liability at December 31, 2025. These instruments generated negative interest income of $100,000 for the second quarter of 2026, compared to interest income of $1.2 million for the second quarter of 2025. Refer to Note 11 – Derivative Financial Instruments of the notes to the consolidated financial statements of this report for additional information. Total loans and leases, at amortized cost, of $12.02 billion at June 30, 2026, increased by $3.32 billion, or 38.1%, from December 31, 2025. The increase was primarily attributable to the Heritage acquisition, which added $3.10 billion of loans held for investment recorded at fair value as of the acquisition date, as well as organic loan growth. To further optimize the balance sheet, the Company sold SFR mortgage pools acquired from Heritage at their fair value of $327.5 million during the second quarter of 2026. The increase in total loans and leases included increases of $2.41 billion in commercial real estate loans, $505.3 million in commercial and industrial loans, $172.2 million in construction loans, $166.2 million in consumer loans, $159.2 million in SBA loans, and $59.6 million in SFR mortgage loans. Our average loan yields were 5.53% for the quarter ended June 30, 2026, compared with 5.22% for the second quarter of 2025. The allowance for credit losses totaled $126.7 million at June 30, 2026, compared with $77.2 million at December 31, 2025. There was no provision for credit losses for either the second quarter of 2026 or 2025. The $49.5 million increase was primarily the result of the $46.9 million allowance for credit losses established for the loans acquired from Heritage and a $3 million provision for credit losses incurred in the first quarter of 2026. Noninterest-bearing deposits were $8.61 billion at June 30, 2026, an increase of $1.81 billion, or 26.6%, compared with $6.80 billion at December 31, 2025. The increase was primarily the result of $1.2 billion of noninterest-bearing deposits assumed in the Heritage merger. At June 30, 2026, noninterest-bearing deposits were 52.8% of total deposits, compared with 56.33% at December 31, 2025. The decline in the proportion of noninterest-bearing deposits reflected the mix of deposits assumed in the Heritage acquisition. Interest-bearing deposits were $7.68 billion at June 30, 2026, an increase of $2.41 billion, or 45.7%, when compared with $5.27 billion at December 31, 2025. The increase in interest-bearing deposits primarily reflected $3.5 billion of interest-bearing deposits assumed in connection with the Heritage acquisition, partially offset by the maturity of $300.0 million of brokered CDs that were not renewed during the second quarter of 2026. Customer repurchase agreements totaled $563.4 million at June 30, 2026, compared with $490.6 million at December 31, 2025. Total deposits and customer repurchase agreements totaled $16.85 billion at June 30, 2026, an increase from December 31, 2025 of $4.29 billion, including $4.75 billion of total deposits assumed in the Heritage acquisition. Our average cost of total deposits including customer repurchase agreements was 0.86% for the quarter ended June 30, 2026, compared to 0.87% for the quarter ended June 30, 2025. At June 30, 2026, total borrowings were $539.0 million, consisting of $500.0 million of FHLB advances and $39.0 million of subordinated debt assumed in the Heritage acquisition, compared with $500.0 million of FHLB advances at December 31, 2025. At June 30, 2026, FHLB advances consisted of $300.0 million of three-month advances that replaced maturing brokered CDs and were designated in related pay-fixed, receive-floating interest rate swaps accounted for as cash flow hedges, under which the Company pays a fixed rate of 4.10% and receives SOFR and a $200.0 million advance bearing interest at 4.27% maturing in May 2027. 47 Total stockholders' equity was $3.17 billion at June 30, 2026, an increase of $874.5 million compared with $2.30 billion at December 31, 2025. The increase was primarily attributable to $840.2 million of common shares issued and exchanged as a result of the Heritage acquisition and $99.3 million in net earnings, partially offset by $62.5 million in cash dividends declared and $5.1 million of common stock repurchases. During the second quarter of 2026, the Company repurchased 241,034 shares under the 2026 Repurchase Program at an average price of $21.06 per share for an aggregate purchase price of $5.1 million. Our tangible book value per share at June 30, 2026 was $11.07, which compares to $11.24 at December 31, 2025. Tangible book value per share is a non-GAAP financial measure. For additional details, refer to Item 2. – MD&A — GAAP to Non-GAAP Reconciliation. Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory requirements. As of June 30, 2026, the Company’s Tier 1 leverage capital ratio was 11.7%, Common Equity Tier 1 (“CET1”) ratio was 14.7%, Tier 1 risk-based capital ratio was 14.7%, and total risk-based capital ratio was 15.6%. Refer to Item 2. – MD&A —Analysis of Financial Condition – Capital Resources. 48 ANALYSIS OF THE RESULTS OF OPERATIONS Financial Performance Three Months Ended Variance June 30, March 31, 2026 2026 $ % (Dollars in thousands, except per share amounts) Net interest income $ 162,415 $ 117,840 $ 44,575 37.83 % Provision for credit losses — (3,000 ) 3,000 100.00 % Noninterest income 17,010 14,279 2,731 19.13 % Noninterest expense (114,378 ) (60,568 ) (53,810 ) -88.84 % Income taxes (16,786 ) (17,549 ) 763 4.35 % Net earnings $ 48,261 $ 51,002 $ (2,741 ) -5.37 % Earnings per common share: Basic $ 0.29 $ 0.38 $ (0.09 ) Diluted $ 0.29 $ 0.38 $ (0.09 ) Return on average assets 0.97 % 1.33 % -0.36 % Return on average shareholders' equity 6.41 % 8.86 % -2.45 % Efficiency ratio 63.75 % 45.84 % 17.91 % Noninterest expense to average assets 2.31 % 1.58 % 0.73 % Three Months Ended June 30, Variance 2026 2025 $ % (Dollars in thousands, except per share amounts) Net interest income $ 162,415 $ 111,608 $ 50,807 45.52 % Noninterest income 17,010 14,744 2,266 15.37 % Noninterest expense (114,378 ) (57,557 ) (56,821 ) -98.72 % Income taxes (16,786 ) (18,231 ) 1,445 7.93 % Net earnings $ 48,261 $ 50,564 $ (2,303 ) -4.55 % Earnings per common share: Basic $ 0.29 $ 0.37 $ (0.08 ) Diluted $ 0.29 $ 0.37 $ (0.08 ) Return on average assets 0.97 % 1.34 % -0.37 % Return on average shareholders' equity 6.41 % 9.06 % -2.65 % Efficiency ratio 63.75 % 45.55 % 18.20 % Noninterest expense to average assets 2.31 % 1.52 % 0.79 % Six Months Ended June 30, Variance 2026 2025 $ % (Dollars in thousands, except per share amounts) Net interest income $ 280,255 $ 222,052 $ 58,203 26.21 % (Provision for) recapture of credit losses (3,000 ) 2,000 (5,000 ) -250.00 % Noninterest income 31,289 30,973 316 1.02 % Noninterest expense (174,946 ) (116,701 ) (58,245 ) -49.91 % Income taxes (34,335 ) (36,656 ) 2,321 6.33 % Net earnings $ 99,263 $ 101,668 $ (2,405 ) -2.37 % Earnings per common share: Basic $ 0.65 $ 0.73 $ (0.08 ) Diluted $ 0.65 $ 0.73 $ (0.08 ) Return on average assets 1.13 % 1.35 % -0.22 % Return on average shareholders' equity 7.47 % 9.18 % -1.71 % Efficiency ratio 56.15 % 46.12 % 10.03 % Noninterest expense to average assets 1.99 % 1.55 % 0.44 % 49 GAAP to Non-GAAP Reconciliation The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies. Return on Average Tangible Common Equity Reconciliation (Non-GAAP) The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP, a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP, as well as a calculation of return on average tangible common equity. Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 (Dollars in thousands) Net Income $ 48,261 $ 51,002 $ 50,564 $ 99,263 $ 101,668 Add: Amortization of intangible assets 3,577 850 1,155 4,427 2,310 Less: Tax effect of amortization of intangible assets (1) (1,040 ) (247 ) (341 ) (1,287 ) (683 ) Tangible net income $ 50,798 $ 51,605 $ 51,378 $ 102,403 $ 103,295 Average stockholders' equity $ 3,019,704 $ 2,335,673 $ 2,237,948 $ 2,679,578 $ 2,232,478 Less: Average goodwill (1,041,190 ) (765,822 ) (765,822 ) (904,267 ) (765,822 ) Less: Average intangible assets (100,373 ) (5,341 ) (8,232 ) (53,119 ) (8,872 ) Average tangible common equity $ 1,878,141 $ 1,564,510 $ 1,463,894 $ 1,722,192 $ 1,457,784 Return on average equity, annualized (2) 6.41 % 8.86 % 9.06 % 7.47 % 9.18 % Return on average tangible common equity, annualized (2) 10.85 % 13.38 % 14.08 % 11.99 % 14.29 % (1)Tax effected at respective statutory rates. (2)Annualized where applicable. Tangible Book Value (Non-GAAP) The tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. The following is a reconciliation of tangible book value to the Company stockholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share. Three Months Ended June 30, March 31, June 30, 2026 2026 2025 (Dollars in thousands, except per share amounts) Stockholders' equity $ 3,169,689 $ 2,321,281 $ 2,240,322 Less: Goodwill (1,099,936 ) (765,822 ) (765,822 ) Less: Intangible assets (117,927 ) (4,924 ) (7,657 ) Tangible book value $ 1,951,826 $ 1,550,535 $ 1,466,843 Total assets $ 21,182,781 $ 15,507,580 $ 15,414,130 Less: Goodwill (1,099,936 ) (765,822 ) (765,822 ) Less: Intangible assets (117,927 ) (4,924 ) (7,657 ) Tangible assets $ 19,964,918 $ 14,736,834 $ 14,640,651 Common shares issued and outstanding 176,247,135 135,791,180 137,825,465 Tangible book value per share $ 11.07 $ 11.42 $ 10.64 50 Adjusted Efficiency Ratio (Non-GAAP) Adjusted efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less acquisition-related expense and the provision for unfunded loan commitments, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business. Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (Dollars in thousands) Total noninterest expense $ 114,378 $ 60,568 $ 57,557 $ 174,946 $ 116,701 Less: Provision for unfunded loan commitments 4,250 500 — 4,750 500 Less: Acquisition related expenses 31,400 1,129 — 32,529 — Adjusted noninterest expense $ 78,728 $ 58,939 $ 57,557 $ 137,667 $ 116,201 Net interest income before provision for credit losses $ 162,415 $ 117,840 $ 111,608 $ 280,255 $ 222,052 Add: total noninterest income 17,010 14,279 14,744 31,289 30,973 Total revenue $ 179,425 $ 132,119 $ 126,352 $ 311,544 $ 253,025 Efficiency ratio 63.75 % 45.84 % 45.55 % 56.15 % 46.12 % Adjusted efficiency ratio, excluding provision for unfunded loan commitments and acquisition related expenses 43.88 % 44.61 % 45.55 % 44.19 % 45.92 % Net Interest Income The principal component of our earnings is net interest income, which is the difference between the interest and fees earned on loans and investments (interest-earning assets) and the interest paid on deposits and borrowed funds (interest-bearing liabilities). Net interest margin is net interest income as a percentage of average interest-earning assets for the period. The level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income and net interest margin. The net interest spread is the yield on average interest-earning assets minus the cost of average interest-bearing liabilities. Net interest margin and net interest spread are included on a tax equivalent (“TE”) basis by adjusting interest income utilizing the federal statutory corporate tax rates of 21% in effect for the three and six months ended June 30, 2026 and 2025. Our net interest income, interest spread, and net interest margin are sensitive to general business and economic conditions. These conditions include short-term and long-term interest rates, inflation, monetary supply, and the strength of the international, national and state economies, in general, and more specifically, the local economies in which we conduct business. We manage interest rate risk within policy limits approved by the Board of Directors, which guides and limits the interest rate risk over short-term and long-term horizons. Sources of interest rate risk include differences in maturity and re-pricing characteristics of assets and liabilities, changes in the shape of the yield curve, and embedded options in assets or liabilities. The mix of interest-earning assets as well as the mix of noninterest-bearing deposits and interest-bearing liabilities impacts our ability to manage net interest income during changing interest rate conditions. We also utilize certain derivative instruments to partially hedge interest rate risk. See Item 2 – MD&A – Asset/Liability and Market Risk Management – Interest Rate Sensitivity Management included herein. 51 The tables below present the interest rate spread, net interest margin and the composition of average interest-earning assets and average interest-bearing liabilities by category for the periods indicated, including the changes in average balance, composition, and average yield/rate between these respective periods. Three Months Ended June 30, 2026 2025 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate (Dollars in thousands) INTEREST-EARNING ASSETS Investment securities (1) Available-for-sale securities: Taxable $ 3,014,225 $ 23,083 3.06 % $ 2,485,298 $ 18,154 2.92 % Tax-advantaged 20,652 146 3.37 % 20,303 145 3.41 % Held-to-maturity securities: Taxable 1,882,973 10,037 2.13 % 1,977,744 10,537 2.13 % Tax-advantaged 353,045 2,285 3.13 % 364,070 2,349 3.12 % Investment in FHLB, FRB, and other stock 77,891 1,227 6.32 % 18,012 411 9.15 % Interest-earning deposits with other institutions 669,165 6,138 3.68 % 337,929 3,768 4.47 % Loans (2) 11,548,138 159,212 5.53 % 8,354,898 108,845 5.22 % Total interest-earning assets 17,566,089 202,128 4.62 % 13,558,254 144,209 4.28 % Total noninterest-earning assets 2,315,339 1,624,920 Total assets $ 19,881,428 $ 15,183,174 INTEREST-BEARING LIABILITIES Savings deposits (3) $ 6,511,383 $ 25,661 1.58 % $ 4,183,585 $ 20,909 2.00 % Time deposits 888,788 6,458 2.91 % 572,243 3,920 2.75 % Total interest-bearing deposits 7,400,171 32,119 1.74 % 4,755,828 24,829 2.09 % Customer repurchase agreements 564,766 2,519 1.79 % 376,629 1,561 1.66 % FHLB advances and other borrowings 384,295 4,189 4.32 % 508,159 5,840 4.61 % Subordinated debentures 31,993 639 7.90 % — — — Interest expense - Other interest-bearing liabilities 26,932 248 3.64 % 33,891 371 4.33 % Interest-bearing liabilities 8,408,157 39,714 1.89 % 5,674,507 32,601 2.30 % Noninterest-bearing deposits 8,123,844 7,051,702 Other liabilities 329,723 219,017 Stockholders' equity 3,019,704 2,237,948 Total liabilities and stockholders' equity $ 19,881,428 $ 15,183,174 Net interest income $ 162,414 $ 111,608 Net interest spread - tax equivalent 2.73 % 1.98 % Net interest margin 3.71 % 3.30 % Net interest margin - tax equivalent 3.72 % 3.31 % (1)Includes TE adjustments utilizing federal statutory corporate rates of 21% in effect for the three months ended June 30, 2026 and June 30, 2025. The non-TE rates for total investment securities were 2.70% and 2.57% for the three months ended June 30, 2026 and June 30, 2025, respectively. (2)Includes loan fees of $1.2 million and $615,000 for the three months ended June 30, 2026 and 2025, respectively. Prepayment penalty fees of $527,000 and $680,000 are included in interest income for the three months ended June 30, 2026 and 2025, respectively. Average balances include nonperforming loans. (3)Includes interest-bearing demand and money market accounts. 52 Six Months Ended June 30, 2026 2025 Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate (Dollars in thousands) INTEREST-EARNING ASSETS Investment securities (1) Available-for-sale securities: Taxable $ 2,828,044 $ 42,338 2.99 % $ 2,501,885 $ 36,744 2.94 % Tax-advantaged 20,919 291 3.32 % 20,428 289 3.38 % Held-to-maturity securities: Taxable 1,894,219 20,208 2.13 % 1,990,404 21,196 2.13 % Tax-advantaged 353,839 4,580 3.13 % 365,180 4,711 3.12 % Investment in FHLB stock 66,980 2,538 7.64 % 18,012 790 8.84 % Interest-earning deposits with other institutions 480,896 8,799 3.69 % 250,644 5,565 4.48 % Loans (2) 10,094,447 272,484 5.44 % 8,410,871 217,916 5.22 % Total interest-earning assets 15,739,344 351,238 4.50 % 13,557,424 287,211 4.28 % Total noninterest-earning assets 1,992,280 1,618,854 Total assets $ 17,731,624 $ 15,176,278 INTEREST-BEARING LIABILITIES Savings deposits (3) $ 5,498,933 $ 44,756 1.64 % $ 4,243,015 $ 42,285 2.01 % Time deposits 728,616 10,415 2.88 % 567,752 7,866 2.79 % Total interest-bearing deposits 6,227,549 55,171 1.79 % 4,810,767 50,151 2.10 % Customer repurchase agreements 553,387 4,807 1.75 % 347,140 2,530 1.47 % FHLB advances and other borrowings 441,828 9,872 4.45 % 510,605 11,671 4.61 % Subordinated debentures 16,085 639 4.51 % — — — Interest expense - Other interest-bearing liabilities 26,832 494 3.66 % 37,070 807 4.33 % Interest-bearing liabilities 7,265,681 70,983 1.97 % 5,705,582 65,159 2.30 % Noninterest-bearing deposits 7,512,532 7,029,156 Other liabilities 273,833 209,062 Stockholders' equity 2,679,578 2,232,478 Total liabilities and stockholders' equity $ 17,731,624 $ 15,176,278 Net interest income $ 280,255 $ 222,052 Net interest spread - tax equivalent 2.54 % 1.98 % Net interest margin 3.58 % 3.30 % Net interest margin - tax equivalent 3.60 % 3.31 % (1)Includes TE adjustments utilizing federal statutory corporate rates of 21% in effect for the six months ended June 30, 2026 and June 30, 2025. The non-TE rates for total investment securities were 2.65% and 2.59% for the three months ended June 30, 2026 and June 30, 2025, respectively. (2)Includes loan fees of $2.4million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively. Prepayment penalty fees of $1.0 million and $1.6 million were included in interest income for the six months ended June 30, 2026 and 2025, respectively. Average balances include nonperforming loans. (3)Includes interest-bearing demand and money market accounts. 53 The following table presents a comparison of interest income and interest expense resulting from changes in the volumes and rates on average interest-earning assets and average interest-bearing liabilities for the periods indicated. Changes in interest income or expense attributable to volume changes are calculated by multiplying the change in volume by the initial average interest rate. The change in interest income or expense attributable to changes in interest rates is calculated by multiplying the change in interest rate by the initial volume. The net change resulting from the combined impact of volume and interest rates changes has been allocated proportionately between changes attributable to volume and changes attributable to rates. Rate and Volume Analysis for Changes in Interest Income, Interest Expense and Net Interest Income Comparison of Three Months Ended June 30, 2026 Compared to 2025 Increase (Decrease) Due to Volume Rate Total (Dollars in thousands) Interest income: Available-for-sale securities: Taxable investment securities $ 4,029 $ 900 $ 4,929 Tax-advantaged investment securities 2 (1 ) 1 Held-to-maturity securities: Taxable investment securities (505 ) 5 (500 ) Tax-advantaged investment securities (71 ) 7 (64 ) Investment in FHLB, FRB, and other stock 979 (163 ) 816 Interest-earning deposits with other institutions 3,138 (768 ) 2,370 Loans 43,739 6,628 50,367 Total interest income 51,312 6,607 57,919 Interest expense: Savings deposits 9,951 (5,199 ) 4,752 Time deposits 2,427 111 2,538 Repurchase agreements 831 126 957 FHLB advances and other borrowings (1,313 ) (338 ) (1,651 ) Subordinated debentures 320 320 639 Interest expense - Other interest-bearing liabilities (69 ) (54 ) (123 ) Total interest expense 12,145 (5,033 ) 7,112 Net interest income $ 39,166 $ 11,641 $ 50,807 54 Comparison of Six Months Ended June 30, 2026 Compared to 2025 Increase (Decrease) Due to Volume Rate Total (Dollars in thousands) Interest income: Available-for-sale securities: Taxable investment securities $ 4,892 $ 702 $ 5,594 Tax-advantaged investment securities 13 (11 ) 2 Held-to-maturity securities: Taxable investment securities (1,099 ) 111 (988 ) Tax-advantaged investment securities (176 ) 45 (131 ) Investment in FHLB stock 2,078 (330 ) 1,748 Interest-earning deposits with other institutions 6,028 (2,794 ) 3,234 Loans 45,170 9,398 54,568 Total interest income 56,906 7,121 64,027 Interest expense: Savings deposits 20,831 (18,360 ) 2,471 Time deposits 2,292 257 2,549 Repurchase agreements 1,722 555 2,277 FHLB advances and other borrowings (214 ) (1,585 ) (1,799 ) Subordinated debentures 320 320 639 Interest expense - Other interest-bearing liabilities (201 ) (112 ) (313 ) Total interest expense 24,751 (18,927 ) 5,824 Net interest income $ 32,155 $ 26,048 $ 58,203 Second Quarter of 2026 Compared to the Second Quarter of 2025 Net interest income, before provision for credit losses, of $162.4 million for the second quarter of 2026 increased by $50.8 million, or 45.5%, from the second quarter of 2025. The increase was driven by a $57.9 million increase in interest income, partially offset by a $7.1 million increase in interest expense. The year-over-year increase in net interest income largely reflected the impact of operating as a combined company for approximately two and a half months following the Heritage acquisition. Our tax-equivalent net interest margin increased 41 basis points to 3.72% for the second quarter of 2026, compared with the second quarter of 2025. The expansion in net interest margin was primarily due to a 34 basis point increase in the yield on average interest-earning assets, as well as a seven basis point decrease in the cost of funds. Total interest income of $202.1 million increased by $57.9 million, or 40.2%, compared with the second quarter of 2025. This increase was primarily due to a $4.00 billion increase in average interest-earning assets and a 34 basis point increase in the yield on interest-earning assets. Average loan balances increased by $3.19 billion, average interest-earning deposits with other institutions increased by $331.2 million, and the average balance of investment securities increased by $423.5 million from the second quarter of 2025. Total interest income and fees on loans for the second quarter of 2026 were $159.2 million, an increase of $50.4 million, or 46.3%, from the second quarter of 2025. This increase in income was due to the $3.19 billion increase in average loan balances and a 31 basis point increase in average loan yields from 5.22% for the second quarter of 2025 to 5.53% for the second quarter of 2026. In addition to the impact of originating new loans at higher yields than the existing loan portfolio, the increase in average loan yields reflected the Heritage acquisition and the addition of higher-yielding acquired assets, including factored receivables that averaged approximately $86.1 million during the second quarter of 2026. Through the Heritage acquisition, the Company acquired CSNK Working Capital Finance Corp., doing business as Bay View Funding, a wholly owned subsidiary of the Bank that provides working capital factoring financing to businesses throughout the United States. During the second quarter of 2026, the average yield on factored receivables was 18.04%. 55 Interest income from investment securities was $35.6 million for the second quarter of 2026, an increase of $4.4 million, or 14.0%, from the second quarter of 2025. A nine basis point increase in yields on investment securities was partially offset by a decrease in the interest income derived from the pay-fixed swaps designated as fair value hedges on AFS securities. The spread between daily SOFR and the fixed rate paid on these swaps decreased from 0.50% in the second quarter of 2025 to negative 0.09% in the second quarter of 2026, resulting in a $1.4 million decrease in interest income. Excluding the impact of the pay-fixed swaps, the average yield on investment securities increased by 25 basis points, due to the higher yield on investment securities purchased and acquired during the first six months of 2026. Interest expense was $39.7 million for the second quarter of 2026, an increase of $7.1 million, compared with the second quarter of 2025. Total interest bearing deposits increased on average by $2.64 billion, while customer repurchase agreements and borrowings increased on average by $96.3 million. Cost of funds was 0.96% for the second quarter of 2026, which decreased from 1.03% for the second quarter of 2025. Although average noninterest-bearing deposits declined as a percentage of average total deposits to 52.3% from 59.7%, resulting in a less favorable deposit mix, the cost of total interest-bearing deposits decreased by 35 basis points, more than offsetting the impact of the lower proportion of noninterest-bearing deposits. The cost of customer repurchase agreements increased from 1.66% in the second quarter of 2025 to 1.79% in the second quarter of 2026, while the average cost of borrowings declined by 29 basis points. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Net interest income, before provision for credit losses, was $280.3 million for the six months ended June 30, 2026, an increase of $58.2 million, or 26.21%, compared with $222.1 million for the same period last year. The increase was attributable to higher balance and yields on average interest-earning assets as well as lower cost of funds, partially offset by an increase in the balance of interest-bearing liabilities. The increases in average interest-earning assets and interest-bearing liabilities reflected the impact of interest-earning assets and interest-bearing liabilities acquired in connection with the Heritage acquisition, as well as organic growth. Our net interest margin (TE) was 3.60% for the six months ended June 30, 2026, compared with 3.31% for the same period last year. The expansion in net interest margin was primarily due to a 22 basis point increase in the yield on average interest-earning assets, as well as a two basis point decrease in the cost of funds. Total interest income was $351.2 million for the six months ended June 30, 2026, an increase of $64.0 million, or 22.29%, compared with the same period last year. This increase was primarily due to a $2.18 billion increase in average interest-earning assets and a 22 basis point increase in the yield on interest-earning assets. Average loan balances increased by $1.68 billion, average interest-earning deposits with other institutions increased by $230.3 million, and average investment securities increased by $219.1 million from the same period last year. Total interest income and fees on loans for the six months ended June 30, 2026 were $272.5 million, an increase of $54.6 million, or 25.04%, from the same period last year. This increase in income was due to the $1.68 billion increase in average loan balances and a 22 basis point increase in average loan yields from 5.22% for the six months ended June 30, 2025, to 5.44% for the six months ended June 30, 2026. Interest income from investment securities was $67.4 million for the six months ended June 30, 2026, an increase of $4.5 million, or 7.0%, from the same period last year. A 12 basis point increase in yields on investment securities was partially offset by a decrease in the interest income derived from the pay-fixed swaps designated as fair value hedges on AFS securities. The spread between daily SOFR and the fixed rate paid on these swaps decreased from 0.47% for the six months ended June 30, 2025 to a negative 0.07% for the six months ended June 30, 2026, resulting in a $2.6 million decrease in interest income. Interest expense was $71.0 million for the six months ended June 30, 2026, an increase of $5.8 million, or 8.94%, from the same period last year. Total cost of funds for the six months ended June 30, 2026, was 0.97%, compared with 1.03% for the same period last year. Although average noninterest-bearing deposits declined as a percentage of average total deposits to 54.68% from 59.37%, resulting in a less favorable deposit mix, the cost of total interest-bearing deposits decreased by 31 basis points, more than offsetting the impact of the lower proportion of noninterest-bearing deposits. However, the cost of customer repurchase agreements increased from 1.47% in the six months ended June 30, 2025 to 1.75% in the six months ended June 30, 2026. 56 Provision for (Recapture of) Credit Losses The provision for (recapture of) credit losses is a charge to earnings to maintain the allowance for credit losses at a level consistent with management’s assessment of expected lifetime losses in the loan portfolio as of the balance sheet date. The provision for credit losses on loans was zero for both the second quarter of 2026 and 2025. Net charge-offs for the second quarter of 2026 were $137,000, compared with net charge-offs of $249,000 for the second quarter of 2025. For the six months ended June 30, 2026, the provision for credit losses was $3.0 million, compared with $2.0 million recapture of credit losses for the same period last year. Net charge-offs were $128,000 for the six months ended June 30, 2026, compared with net charge-offs of $119,000 for the same period last year. The provision for credit losses for the six months ended June 30, 2026 was largely attributable to a $3.2 million increase in specific reserves, primarily related to one commercial and industrial credit relationship. No assurance can be given that economic conditions affecting the Company’s service areas or other circumstances will or will not be reflected in future changes in the level of our allowance for credit losses and the resulting provision for, or recapture of, credit losses. The process to estimate the allowance for credit losses requires considerable judgment and economic forecasts may continue to vary due to the uncertainty of the future impact from geopolitical events, trade barriers, including tariff policies, inflationary pressures, future interest rates, unemployment levels, and overall economic conditions, all of which may impact our customers. Refer to Item 2 – MD&A - Analysis of Financial Condition - Allowance for Credit Losses for a discussion of changes in the credit quality of our loan portfolio as well as refinements to the Company's ACL methodology. Noninterest Income Noninterest income includes income derived from financial services offered to our customers, such as CitizensTrust, merchant processing and card services, international banking, and other business services. Also included in noninterest income are service charges and fees, primarily from deposit accounts, gains (net of losses) from the disposition of investment securities, loans, other real estate owned, and fixed assets, and other revenues not included as interest on earning assets. The following table sets forth the various components of noninterest income for the periods presented. Three Months Ended Six Months Ended June 30, Variance June 30, Variance 2026 2025 $ % 2026 2025 $ % (Dollars in thousands) Noninterest income: Service charges on deposit accounts $ 5,336 $ 4,959 $ 377 7.60 % $ 10,153 $ 9,867 $ 286 2.90 % Trust and investment services 4,184 3,716 468 12.59 % 7,908 7,127 781 10.96 % Bankcard services 624 647 (23 ) -3.55 % 1,291 1,277 14 1.10 % BOLI income 3,492 3,228 264 8.18 % 6,631 6,059 572 9.44 % Gain on OREO, net — — — 0.00 % — 2,183 (2,183 ) -100.00 % Other 3,374 2,194 1,180 53.78 % 5,306 4,460 846 18.97 % Total noninterest income $ 17,010 $ 14,744 $ 2,266 15.37 % $ 31,289 $ 30,973 $ 316 1.02 % Second Quarter of 2026 Compared to the Second Quarter of 2025 Noninterest income for the second quarter of 2026 increased by $2.3 million, or 15.37%, compared with the second quarter of 2025, primarily reflecting the impact of the Heritage acquisition. The increase was driven by higher fee income across almost all categories and higher BOLI income associated with policies acquired in the merger. The increase was primarily attributable to $468,000 in trust and investment services fees, $377,000 in service charges on deposit accounts, $264,000 in BOLI income, and $1.2 million in other income. International and other banking service fees, which increased by approximately $350,000, are the most significant components of other noninterest income. 57 Trust and investment services revenue is generated through the Company's CitizensTrust division, which provides wealth management, investment management, financial planning, estate planning, retirement planning, trustee, and probate services. Investment Services offers self-directed brokerage, 401(k) plans, mutual funds, insurance products, and other non-insured investment products. At June 30, 2026, CitizensTrust had approximately $5.18 billion in assets under management and administration, including $3.81 billion in assets under management. CitizensTrust generated fee income of $4.2 million for the second quarter of 2026, compared to $3.7 million for the same period last year. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Noninterest income for the six months ended June 30, 2026 increased by $316,000, or 1.02%, compared with the same period last year. The increase was primarily driven by increases in service charges, trust revenue, and BOLI income, reflecting the combined operations following the acquisition of Heritage, partially offset by a $2.2 million gain on sale of OREO during the six months ended June 30, 2025. Trust and investment fees grew by $781,000 or 10.96% due primarily to increased assets under management. BOLI income increased by $572,000, or 9.44%, including changes in net asset value of policies related to deferred compensation arrangements. Noninterest Expense The following table summarizes the various components of noninterest expense for the periods presented. Three Months Ended Six Months Ended June 30, Variance June 30, Variance 2026 2025 $ % 2026 2025 $ % (Dollars in thousands) Noninterest expense: Salaries and employee benefits $ 46,568 $ 34,999 $ 11,569 33.06 % $ 84,029 $ 71,476 $ 12,553 17.56 % Occupancy 6,668 4,865 1,803 37.06 % 11,428 9,628 1,800 18.70 % Equipment 1,625 1,241 384 30.94 % 2,940 2,476 464 18.74 % Professional services 3,250 2,191 1,059 48.33 % 5,768 4,272 1,496 35.02 % Computer software expense 6,136 4,410 1,726 39.14 % 10,439 8,631 1,808 20.95 % Marketing and promotion 2,098 1,817 281 15.47 % 4,159 3,805 354 9.30 % Amortization of intangible assets 3,577 1,155 2,422 209.70 % 4,427 2,310 2,117 91.65 % Telecommunications expense 747 540 207 38.33 % 1,297 1,054 243 23.06 % Regulatory assessments 2,567 2,018 549 27.21 % 2,984 4,035 (1,051 ) -26.05 % Insurance 475 492 (17 ) -3.46 % 931 974 (43 ) -4.41 % Provision for unfunded loan commitments 4,250 — 4,250 100.00 % 4,750 500 4,250 850.00 % Directors' expenses 367 295 72 24.41 % 715 597 118 19.77 % Acquisition related expenses 31,400 — 31,400 100.00 % 32,529 — 32,529 100.00 % Other 4,650 3,534 1,116 31.58 % 8,550 6,943 1,607 23.15 % Total noninterest expense $ 114,378 $ 57,557 $ 56,821 98.72 % $ 174,946 $ 116,701 $ 58,245 49.91 % Noninterest expense to average assets 2.31 % 1.52 % 1.99 % 1.55 % Efficiency ratio (1) 63.75 % 45.55 % 56.15 % 46.12 % (1)Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. Our ability to control noninterest expenses in relation to asset growth can be measured in terms of total noninterest expenses as a percentage of average assets. Noninterest expense as a percentage of average assets was 2.31% for the second quarter of 2026, compared with 1.52% for the second quarter of 2025. Noninterest expense as a percentage of average assets was 1.99% for the six months ended June 30, 2026, compared with 1.55% for the same period last year. The ratio of noninterest expense to average assets was negatively impacted by acquisition-related expense and the provision for unfunded loan commitments. 58 Our ability to control noninterest expenses in relation to the level of total revenue (net interest income before provision for credit losses plus noninterest income) can be measured by the efficiency ratio and indicates the percentage of net revenue that is used to cover expenses. The efficiency ratio was 63.75% for the second quarter of 2026, compared with 45.55% for the second quarter of 2025. For the six months ended June 30, 2026, the efficiency ratio was 56.15%, compared with 46.12% for the same period last year. Our efficiency ratio adjusted for acquisition expense and the provision for unfunded loan commitments declined from 45.55% in the second quarter of 2025 to 43.88% in the second quarter of 2026. Adjusted efficiency ratio is a non-GAAP measure. For additional details, refer to Item 2.–MD&A—GAAP to Non-GAAP Reconciliation. Second Quarter of 2026 Compared to the Second Quarter of 2025 Noninterest expense for the second quarter of 2026 was $114.4 million, an increase of $56.8 million, or 98.7%, from $57.6 million for the second quarter of 2025. The increase was primarily attributable to the Heritage acquisition and the related addition of operations, personnel, and banking centers. During the second quarter of 2026, the Company incurred $31.4 million of acquisition expenses. Excluding acquisition expense, noninterest expense increased $25.4 million compared with the second quarter of 2025. This increase was primarily driven by an $11.6 million increase in salaries and employee benefits, a $4.3 million increase in provision for unfunded loan commitments attributable to the Heritage acquisition, a $2.4 million increase in amortization of intangible assets related to the core deposit intangibles, a $2.2 million increase in occupancy and equipment and a $1.8 million increase in computer software expense. Excluding acquisition expense and the provision for unfunded loan commitments, the increase in noninterest expense compared to the second quarter of 2025 was $21.2 million. The remaining increases primarily reflect the addition of personnel, facilities, technology platforms, and other operating costs resulting from the Heritage acquisition. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 For the six months ended June 30, 2026, noninterest expense was $174.9 million, an increase of $58.2 million, or 49.9% from the same period last year. The increase was primarily attributable to the Heritage acquisition and the related addition of operations, personnel, and banking centers. During the six months ended June 30, 2026, the Company incurred $32.5 million of acquisition expenses. Excluding acquisition expense, noninterest expense increased $25.7 million compared to the six months ended June 30, 2025. This increase was primarily driven by a $12.6 million increase in salaries and employee benefits, a $4.3 million increase in provision for unfunded loan commitment attributable to the Heritage acquisition, a $2.3 million increase in occupancy and equipment, and a $2.1 million increase in amortization of intangible assets, a $1.8 million increase in computer software expense, and a $1.5 million increase in professional services expense. Excluding acquisition expense and the provision for unfunded loan commitments, the increase in noninterest expense compared to the six months ended June 30, 2025 was $21.5 million. The remaining increases primarily reflect the addition of personnel, facilities, technology platforms, and other operating costs resulting from the Heritage acquisition. Income Taxes The Company’s effective tax rate for the three and six months ended June 30, 2026 was 25.81% and $25.7%, respectively, compared with 26.50% for both the three and six months ended June 30, 2025, respectively. Our estimated annual effective tax rate also varies depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits. The decrease in the effective tax rate was primarily driven by increased investments in solar tax credits. The Company’s effective tax rates are below the nominal combined Federal and State tax rate primarily as a result of tax-advantaged income from certain municipal security investments, municipal loans and leases and BOLI, as well as available tax credits for each period. ANALYSIS OF FINANCIAL CONDITION Total assets of $21.18 billion at June 30, 2026 increased by $5.55 billion, or 35.52%, from total assets of $15.63 billion at December 31, 2025. Interest-earning assets of $18.69 billion at June 30, 2026 increased by $4.69 billion, or 33.6%, when compared with $13.99 billion at December 31, 2025. The increase in interest-earning assets was primarily due to a $3.32 billion increase in total loans, a $728.0 million increase in cash and cash equivalents, and a $722.8 million increase in investment securities, partially offset by a decrease of $12.3 million in interest-earning balances due from other depository institutions. The increase in total assets from prior year end primarily reflects the impact of the Heritage acquisition completed on April 17, 2026, partially offset by balance sheet optimization activities during the quarter. 59 Total liabilities were $18.01 billion at June 30, 2026, an increase of $4.68 billion, or 35.07%, from total liabilities of $13.34 billion at December 31, 2025. Total deposits increased by $4.22 billion, or 34.93%, with interest-bearing deposits increasing by $2.41 billion, or 45.73%. Noninterest-bearing deposits increased by $1.81 billion, or 26.56%. At June 30, 2026, total borrowings were $539.0 million, consisting of $500.0 million of FHLB advances and $39.0 million of subordinated debt assumed in the Heritage acquisition, compared with $500.0 million of FHLB advances at December 31, 2025. Total stockholders' equity increased by $874.5 million to $3.17 billion at June 30, 2026, compared with total stockholder's equity of $2.30 billion at December 31, 2025. The increase was primarily attributable to $840.2 million of common shares issued and exchanged in connection with the Heritage acquisition and $99.3 million in net earnings, partially offset by $62.5 million in cash dividends declared and $5.1 million of common stock repurchases. During the first six months of 2026, the Company purchased 241,034 shares under the 2026 Repurchase Program, at an average price of $21.06 per share. Investment Securities The Company maintains a portfolio of investment securities to provide interest income and to serve as a source of liquidity for its ongoing operations. At June 30, 2026, total investment securities were $5.68 billion, an increase of $722.8 million, or 14.6%, from $4.95 billion at December 31, 2025. The increase was primarily attributable to approximately $519.0 million of AFS investment securities acquired and retained in the Heritage acquisition, as well as approximately $511.5 million of purchases of AFS securities during the second quarter of 2026. As part of the Company's balance sheet strategy to improve portfolio yields and reduce asset duration, approximately $488.2 million of securities acquired from Heritage were sold upon completion of the merger and reinvested in lower duration securities at an average yield of approximately 4.70%. The repositioning enhanced the portfolio's expected yield while reducing duration risk. At June 30, 2026, AFS investment securities totaled $3.46 billion, inclusive of a pre-tax net unrealized loss of $323.5 million, an increase of $774.7 million, or 28.87%, from $2.68 billion at December 31, 2025. The after-tax unrealized loss on our AFS investment securities reported in accumulated other comprehensive income (“AOCI”) was $229.5 million, compared with $218.3 million at December 31, 2025. The changes in the net unrealized holding loss resulted primarily from fluctuations in market interest rates. At June 30, 2026, HTM investment securities totaled $2.22 billion, a decrease of $51.9 million, or 2.3%, from $2.27 billion at December 31, 2025. Our average tax-equivalent yield on investments was 2.74% for the second quarter of 2026, compared with 2.62% for the second quarter of 2025. There were no investment securities sold from the legacy securities portfolio during the six months ended June 30, 2026 and 2025. During the six months ended June 30, 2026 and 2025, the Company originated $1.1 million and $6.2 million, respectively, of Commercial Property Assessed Clean Energy (“C-PACE”) bonds, which are included in our HTM securities. 60 The following tables present the fair value of AFS and the amortized cost of HTM investment securities as well as the weighted average yields on our investment securities portfolio by contractual maturity as of the date indicated. June 30, 2026 One Year or Less After One Year Through Five Years After Five Years Through Ten Years After Ten Years Total (Dollars in thousands) Amount Weighted Average Yield Amount Weighted Average Yield Amount Weighted Average Yield Amount Weighted Average Yield Amount Weighted Average Yield AFS investment securities Government agency/GSE $ 30,589 3.66 % $ 14,937 3.73 % $ — — $ — — $ 45,526 3.68 % Mortgage-backed securities 2,768 3.00 % 4,901 3.03 % 32,021 3.94 % 2,385,709 3.04 % 2,425,399 3.05 % CMO/REMIC 162 2.74 % — — 443 3.00 % 921,343 3.17 % 921,948 3.17 % Municipal bonds (1) 382 2.75 % 12,326 3.72 % 8,117 3.50 % — — 20,825 3.62 % Collateralized loan obligations — — — — — — 42,029 4.91 % 42,029 4.91 % Other securities 2,037 2.33 % — — — — — — 2,037 2.33 % Total AFS investment securities (1) $ 35,938 3.52 % $ 32,164 3.62 % $ 40,581 3.84 % $ 3,349,081 3.10 % $ 3,457,764 3.12 % HTM investment securities Government agency/GSE $ — — $ 56,728 1.26 % $ 193,244 1.80 % $ 240,352 1.94 % $ 490,324 1.80 % Mortgage-backed securities — — 10,096 2.46 % 25,254 2.73 % 498,502 2.39 % 533,852 2.41 % CMO/REMIC — — — — — — 736,006 1.87 % 736,006 1.87 % Municipal bonds (1) 4,368 4.05 % 63,543 3.37 % 109,728 3.04 % 261,909 3.71 % 439,548 3.49 % Other securities — — — — — — 18,799 8.50 % 18,799 8.50 % Total HTM investment securities (1) $ 4,368 4.05 % $ 130,367 2.38 % $ 328,226 2.28 % $ 1,755,568 2.37 % $ 2,218,529 2.36 % Total securities (1) $ 40,306 3.58 % $ 162,531 2.63 % $ 368,807 2.45 % $ 5,104,649 2.85 % $ 5,676,293 2.82 % (1)Includes TE adjustments. The non-TE weighted average yields for securities were 2.75% and 2.49% at June 30, 2026 and December 31, 2025. The maturity of each security category is defined as the contractual maturity except for the categories of mortgage-backed securities and CMO/REMIC whose maturities are defined as the estimated average life. The final maturity of mortgage-backed securities and CMO/REMIC will differ from their contractual maturities because the underlying mortgages have the right to repay such obligations without penalty. The speed at which the underlying mortgages repay is influenced by many factors, one of which is interest rates. Mortgages tend to repay faster as interest rates fall and slower as interest rates rise. This will either shorten or extend the estimated average life. Also, the yields on mortgage-backed securities and CMO/REMIC securities are affected by the speed at which the underlying mortgages repay. This is caused by the change in the amount of amortization of premiums or accretion of discounts of each security as repayments increase or decrease. The Company obtains the estimated average life of each security from independent third parties. The weighted-average tax-equivalent (“TE”) yield on the total investment portfolio at June 30, 2026 was 2.82% with a weighted-average life of 6.3 years. This compares to a weighted-average TE yield of 2.59% at December 31, 2025 with a weighted-average life of 6.4 years. The weighted average life is the average number of years that each dollar of unpaid principal due remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal pay-downs. Approximately 91% of the investment securities portfolio at June 30, 2026 consisted of securities issued or guaranteed by the U.S. government or U.S. government-sponsored enterprises. As of June 30, 2026, $19.9 million in U.S. government agency securities are callable. Agency CMO/REMIC securities are backed by agency-pooled collateral. Municipal bonds represented approximately 9% of the total investment portfolio and were predominately AA or higher. Refer to Note 5 – Investment Securities of the notes to the unaudited condensed consolidated financial statements of this report for additional information on our investment securities portfolio. 61 Loans Total loans and leases, at amortized cost, were $12.02 billion at June 30, 2026, an increase of $3.32 billion, or 38.14%, from December 31, 2025. The increase in total loans was primarily attributable to the Heritage acquisition, which added $3.10 billion of loans held for investment recorded at fair value as of the acquisition date as well as organic growth. The increase included increases of $2.41 billion in commercial real estate loans, $505.3 million in commercial and industrial loans, $172.2 million in construction loans, $166.7 million in consumer loans, $159.2 million in SBA loans, and $59.6 million in SFR mortgage loans. These increases were partially offset by decreases of $150.6 million in dairy & livestock and agribusiness loans, reflecting the seasonal reduction in line utilization following the year-end peak, and a $3.5 million decrease in municipal lease finance receivables. The decline in dairy & livestock loans primarily reflected the seasonal peak in line utilization at the end of every calendar year, demonstrated by a decline in utilization from 78% at December 31, 2025 to 63% at June 30, 2026. The following table presents the composition of our loan portfolio as of the dates presented. June 30, 2026 December 31, 2025 Balance Percent of Total Balance Percent of Total (Dollars in thousands) Commercial real estate $ 8,983,934 74.76 % $ 6,574,395 75.57 % Construction 209,993 1.75 % 37,812 0.43 % SBA 441,572 3.67 % 282,401 3.25 % Commercial and industrial 1,478,884 12.31 % 973,631 11.19 % Dairy & livestock and agribusiness 280,994 2.34 % 431,577 4.96 % Municipal lease finance receivables 56,086 0.47 % 59,542 0.68 % SFR mortgage 341,340 2.84 % 281,766 3.24 % Consumer and other loans 224,252 1.87 % 58,069 0.67 % Total loans, at amortized cost 12,017,055 100.00 % 8,699,193 100.00 % Less: Allowance for credit losses (126,661 ) (77,161 ) Total loans and lease finance receivables, net $ 11,890,394 $ 8,622,032 Real estate loans are loans secured by conforming trust deeds on real property, including property under construction, land development, commercial property and single-family and multi-family residences. Our real estate loans are comprised of industrial, office, retail, medical, single family residences, multi-family residences, and farmland. Consumer loans include installment loans to consumers as well as home equity loans, auto and equipment leases and other loans secured by junior liens on real property. Municipal lease finance receivables are leases to municipalities. Dairy & livestock and agribusiness loans are loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers and farmers. Through the Heritage acquisition, the Company acquired CSNK Working Capital Finance Corp., doing business as Bay View Funding (“BVF”), a wholly owned subsidiary of the Bank that provides working capital factoring financing to businesses throughout the United States. The portfolio of factored receivables is included in the Company’s commercial loan portfolio. The average life of factored receivables was 34 days during the six months ended June 30, 2026. As of June 30, 2026, $418.3 million, or 4.7% of the total commercial real estate loans included loans secured by farmland, compared with $424.5 million, or 6.46%, at December 31, 2025. The loans secured by farmland included $124.4 million for loans secured by dairy & livestock land and $293.8 million for loans secured by agricultural land at June 30, 2026, compared with $119.0 million for loans secured by dairy & livestock land and $305.5 million for loans secured by agricultural land at December 31, 2025. As of June 30, 2026, dairy & livestock and agribusiness loans of $281.0 million were comprised of $239.1 million of dairy & livestock loans and $41.9 million of agribusiness loans, compared to $431.6 million comprised of $386.1 million of dairy & livestock loans and $45.5 million of agribusiness loans at December 31, 2025. 62 As of June 30, 2026, the Company had $355.4 million of SBA 504 loans, an increase of $126.6 million from $228.8 million of SBA 504 loans at December 31, 2025. SBA 504 loans include term loans to finance capital expenditures and for the purchase of commercial real estate. Initially the Bank provides two separate loans to the borrower representing a first and second lien on the collateral. The loan with the first lien is typically at a 50% advance to the acquisition costs and the second lien loan provides the financing for 40% of the acquisition costs with the borrower’s down payment of 10% of the acquisition costs. The Bank retains the first lien loan for its term and sells the second lien loan to the SBA subordinated debenture program. A majority of the Bank’s 504 loans are granted for the purpose of commercial real estate acquisition. As of June 30, 2026 and December 31, 2025, the Company had $79.2 million and $53.6 million of total SBA 7(a) loans, respectively, that include a guarantee of payment from the SBA (typically 75% of the loan amount, but up to 90% in certain cases) in the event of default. The SBA 7(a) loans include revolving lines of credit (SBA Express) and term loans of up to ten (10) years to finance long-term working capital requirements, capital expenditures, and/or for the purchase or refinance of commercial real estate. As of June 30, 2026, the Company had $210.0 million in construction loans, representing 1.70% of total loans. As of December 31, 2025, the Company had $37.8 million in construction loans, representing 0.40% of total loans. There were no nonperforming construction loans at June 30, 2026 and December 31, 2025. Our loan portfolio is geographically disbursed throughout our marketplace. The following is the breakdown of our total held-for-investment loans and commercial real estate loans by region as of June 30, 2026 and December 31, 2025. June 30, 2026 Balance Percent of Total Commercial Real Estate Loans Percent of Total (Dollars in thousands) Los Angeles County $ 3,241,028 27.0 % $ 2,327,363 25.9 % Central Valley & Sacramento 2,030,312 16.9 % 1,675,214 18.7 % Orange County 1,302,808 10.8 % 732,821 8.2 % Santa Clara 1,080,754 9.0 % 634,499 7.1 % Inland Empire 1,051,111 8.7 % 938,340 10.4 % San Mateo 580,453 4.8 % 309,788 3.4 % Central Coast 579,991 4.8 % 520,682 5.8 % Alameda 499,418 4.2 % 514,629 5.7 % San Diego 427,509 3.6 % 371,156 4.1 % Other California 837,942 7.0 % 590,302 6.6 % Out of State 385,729 3.2 % 369,140 4.1 % $ 12,017,055 100.0 % $ 8,983,934 100.0 % December 31, 2025 Balance Percent of Total Commercial Real Estate Loans Percent of Total (Dollars in thousands) Los Angeles County $ 3,078,557 35.4 % $ 2,258,787 34.4 % Central Valley and Sacramento 2,039,693 23.4 % 1,511,983 23.0 % Orange County 1,292,970 14.9 % 771,320 11.7 % Inland Empire 1,013,602 11.7 % 878,132 13.4 % Central Coast 433,147 5.0 % 375,770 5.7 % San Diego 343,058 3.9 % 325,167 4.9 % Other California 146,207 1.7 % 105,166 1.6 % Out of State 351,959 4.0 % 348,070 5.3 % $ 8,699,193 100.0 % $ 6,574,395 100.0 % 63 The tables below breaks down our commercial real estate portfolio by collateral type as of June 30, 2026 and December 31, 2025. June 30, 2026 Balance Percent of Total Percent Owner- Occupied (1) Average Loan Balance (Dollars in thousands) Commercial real estate: Industrial $ 2,735,391 30.4 % 46.1 % $ 1,729 Office 1,457,979 16.2 % 25.8 % 1,763 Retail 1,415,336 15.8 % 11.8 % 1,741 Multi-family 1,232,366 13.7 % 0.0 % 1,584 Secured by farmland (2) 418,263 4.7 % 99.3 % 1,510 Medical 424,273 4.7 % 30.8 % 1,607 Other (3) 1,300,326 14.5 % 38.5 % 1,709 Total commercial real estate $ 8,983,934 100.0 % 31.7 % $ 1,694 (1)Represents percentage of reported owner-occupied at origination in each real estate loan category. (2)The loans secured by farmland included $124.4 million for loans secured by dairy & livestock land and $293.8 million for loans secured by agricultural land at June 30, 2026. (3)Other loans consist of a variety of loan types, none of which exceeded 2.0% of total commercial real estate loans at June 30, 2026. December 31, 2025 Balance Percent of Total Percent Owner- Occupied (1) Average Loan Balance (Dollars in thousands) Commercial real estate: Industrial $ 2,269,433 34.5 % 47.3 % $ 1,691 Office 989,752 15.1 % 28.6 % 1,644 Retail 908,087 13.8 % 11.1 % 1,710 Multi-family 829,752 12.6 % 0.1 % 1,542 Secured by farmland (2) 424,531 6.5 % 99.5 % 1,490 Medical 327,958 5.0 % 33.1 % 1,491 Other (3) 824,882 12.5 % 41.8 % 1,845 Total commercial real estate $ 6,574,395 100.0 % 35.5 % $ 1,658 (1)Represents percentage of reported owner-occupied at origination in each real estate loan category. (2)The loans secured by farmland included $119.0 million for loans secured by dairy & livestock land and $305.5 million for loans secured by agricultural land at December 31, 2025. (3)Other loans consist of a variety of loan types, none of which exceeded 2.0% of total commercial real estate loans at December 31, 2025. 64 Nonperforming Assets The following table provides information on nonperforming assets as of the dates presented. June 30, 2026 December 31, 2025 (Dollars in thousands) Nonaccrual loans $ 16,642 $ 4,685 Total nonperforming loans 16,642 4,685 OREO, net 206 163 Total nonperforming assets $ 16,848 $ 4,848 Performing modified loans $ 21,635 $ 16,859 Total nonperforming loans and performing modified loans $ 38,277 $ 21,544 Percentage of nonperforming loans and performing modified loans to total loans, at amortized cost 0.32 % 0.25 % Percentage of nonperforming assets to total loans and OREO 0.14 % 0.06 % Percentage of nonperforming assets to total assets 0.08 % 0.03 % Nonperforming Assets and Delinquencies The table below provides trends in our nonperforming assets and delinquencies as of the dates presented. June 30, March 31, December 31, September 30, June 30, 2026 2026 2025 2025 2025 (Dollars in thousands) Nonperforming loans: Commercial real estate $ 4,905 $ 2,094 $ 4,186 $ 23,707 $ 24,379 Construction 685 — — — — SBA 918 477 21 3,952 1,265 Commercial and industrial 9,672 3,573 478 145 265 Dairy & livestock and agribusiness — — — — 60 Consumer and other loans 462 — — — — Total $ 16,642 $ 6,144 $ 4,685 $ 27,804 $ 25,969 % of Total loans 0.14 % 0.07 % 0.05 % 0.33 % 0.31 % Past due 30-89 days (accruing): Commercial real estate $ 2,762 $ 4,715 $ 2,887 $ 43 $ — SBA 785 1,553 30 42 3,419 Commercial and industrial 75 88 261 — — SFR mortgage — 249 — — — Consumer and other loans 123 — — — — Total $ 3,745 $ 6,605 $ 3,178 $ 85 $ 3,419 % of Total loans 0.08 % 0.08 % 0.04 % 0.00 % 0.04 % OREO: Commercial real estate $ 206 $ 206 $ 163 $ 661 $ 661 Total $ 206 $ 206 $ 163 $ 661 $ 661 Total nonperforming, past due, and OREO $ 20,593 $ 12,955 $ 8,026 $ 28,550 $ 30,049 % of Total loans 0.17 % 0.15 % 0.09 % 0.34 % 0.36 % Classified Loans $ 109,718 $ 83,058 $ 52,701 $ 78,180 $ 73,422 65 Nonperforming assets consist of loans whereby we have ceased accruing interest (i.e., nonaccrual loans), OREO, and other repossessed assets owned. Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, generally consist of loans that are 90 days or more past due and loans where, in the opinion of management, there is reasonable doubt as to the full collection of principal and interest, regardless of the length of past due status. Nonperforming loans totaled $16.6 million at June 30, 2026, or 0.14% of total loans. This compares to nonperforming loans of $4.7 million, or 0.05% of total loans, at December 31, 2025. The $11.9 million increase in nonperforming loans was primarily due to the addition of 13 nonperforming commercial and industrial loan totaling $9.1 million, seven nonperforming commercial real estate loans totaling $4.6 million, offset by the payoff of $5.6 million commercial real estate nonaccrual loans. Of the total nonperforming loans at June 30, 2026, $3.0 million were acquired from Heritage. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $57.0 million from December 31, 2025, largely driven by $29.1 million of classified loans acquired in the Heritage merger and changes in loan risk ratings, partially offset by loan payoffs and paydowns. Despite the increase in nonperforming and classified loans following the Heritage acquisition, asset quality metrics remained favorable, with nonperforming loans representing 0.14% of total loans at June 30, 2026. At June 30, 2026, the Company had two OREO properties with a carrying value of $206,000, compared with one OREO property valued at $163,000 at December 31, 2025. Modifications of Loans to Borrowers Experiencing Financial Difficulty There were four loans to borrowers experiencing financial difficulty that were modified during the six months ended June 30, 2026 with an amortized cost totaling $17.4 million at June 30, 2026, including one commercial and industrial loan of $9.7 million, two dairy & livestock and agribusiness loans totaling $6.0 million, and one commercial real estate loan of $1.7 million. During the three and six months ended June 30, 2026 and 2025, the Company did not have any modified loans that subsequently defaulted within twelve months of the modification date. At June 30, 2026 and December 31, 2025, there was no ACL allocated to modified loans to borrowers experiencing financial difficulty. Impairment amounts identified are typically charged off against the allowance at the time the loan is considered uncollectible. There were no charge-offs on loans to borrowers experiencing financial difficulty for the six months ended June 30, 2026 and 2025. See Note 3 — Summary of Significant Accounting Policies — Modification of Loans to Borrowers Experiencing Financial Difficulty of the 2025 Form 10-K and Note 6 – Loans and Lease Finance Receivables and Allowance for Credit Losses of the notes to this Quarterly Report on Form 10-Q for additional information. Allowance for Credit Losses The allowance for credit losses totaled $126.7 million as of June 30, 2026, compared to $77.2 million as of December 31, 2025. Our allowance for credit losses at June 30, 2026 was 1.05% of total loans, compared to 0.89% at December 31, 2025. The $49.5 million increase in our allowance for credit losses from December 31, 2025 reflected the initial ACL of $46.6 million on the purchased credit deteriorated (“PCD”) loans and purchased seasoned loans (“PSL”) acquired in the Heritage acquisition as well as a provision for loan losses of $3.0 million during the six months ended June 30, 2026. Net charge-offs were $128,000 for the six months ended June 30, 2026, compared to net charge-offs of $119,000 for the same period last year. 66 The allowance for credit losses as of June 30, 2026 is based upon lifetime loss rate models developed from an estimation framework that uses historical lifetime loss experiences to derive loss rates at a collective pool level. We measure the expected credit losses on a collective (pooled) basis for those loans that share similar risk characteristics. We have three collective loan pools: Commercial Real Estate, Commercial and Industrial, and Consumer. Our ACL amounts are largely driven by portfolio characteristics, including loss history and various risk attributes, and the economic outlook for certain macroeconomic variables. The allowance for credit loss is sensitive to both changes in these portfolio characteristics and the forecast of macroeconomic variables. Risk attributes for commercial real estate loans include original loan to value ratios, origination year, loan seasoning, and macroeconomic variables that include Real GDP growth, commercial real estate price index and unemployment rate. Risk attributes for commercial and industrial loans include internal risk ratings, borrower industry sector, loan credit spreads and macroeconomic variables that include unemployment rate and BBB spread. The macroeconomic variables for Consumer include unemployment rate and GDP. The Commercial Real Estate methodology is applied over commercial real estate loans, a portion of construction loans, and a portion of SBA loans. The Commercial and Industrial methodology is applied over a substantial portion of the Company’s commercial and industrial loans, all dairy & livestock and agribusiness loans, municipal lease receivables, as well as the remaining portion of SBA loans. The Consumer methodology is applied to SFR mortgage loans, consumer loans, as well as the remaining construction loans. In addition to determining the quantitative life of loan loss rate to be applied against the portfolio segments, management reviews current conditions and forecasts to determine whether adjustments are needed to ensure that the life of loan loss rates reflect both the current state of the portfolio, and expectations for macroeconomic changes. Our economic forecast continues to be a blend of multiple forecasts produced by Moody’s. The baseline forecast continues to represent the largest weighting in our multi-weighted forecast scenario, with both upside and downside risks weighted among multiple forecasts. The resulting weighted average forecast as of June 30, 2026 reflects GDP growth declining throughout 2026 and staying below 2% throughout 2027. The unemployment rate is forecasted to increase to 5% by the beginning of 2027 and remain above 5% through 2028. Commercial real estate prices are forecasted to continue their decline through the end of 2027, before experiencing growth in 2028. 67 The table below presents a summary of charge-offs and recoveries by type, the provision for credit losses on loans, and the resulting allowance for credit losses for the periods presented. As of and For the Six Months Ended June 30, 2026 2025 (Dollars in thousands) Allowance for credit losses at beginning of period $ 77,161 $ 80,122 Charge-offs: SBA (26 ) (51 ) Commercial and industrial (238 ) (413 ) Consumer and other loans — (5 ) Total charge-offs (264 ) (469 ) Recoveries: Construction — 12 SBA 8 41 Commercial and industrial 128 297 Total recoveries 136 350 Net charge-offs (128 ) (119 ) Initial ACL for PCD & PSL Loans at Acquisition 46,628 — Provision for (recapture of) credit losses 3,000 (2,000 ) Allowance for credit losses at end of period $ 126,661 $ 78,003 Summary of reserve for unfunded loan commitments: Reserve for unfunded loan commitments at beginning of period $ 8,250 $ 6,250 Provision for unfunded loan commitments 4,750 500 Reserve for unfunded loan commitments at end of period $ 13,000 $ 6,750 Reserve for unfunded loan commitments to total unfunded loan commitments 0.62 % 0.33 % Amount of total loans at end of period (1) $ 12,017,055 $ 8,358,501 Average total loans outstanding (1) $ 11,548,138 $ 8,410,871 Net recoveries (charge-offs) to average total loans 0.00 % 0.00 % Net recoveries (charge-offs) to total loans at end of period 0.00 % 0.00 % Allowance for credit losses to average total loans 1.10 % 0.93 % Allowance for credit losses to total loans at end of period 1.05 % 0.93 % Allowance for credit losses to nonaccrual loans 761.00 % 300.37 % Net charge-offs to allowance for credit losses -0.10 % -0.15 % Net recoveries to (recapture of) provision for credit losses -4.27 % 5.95 % (1)Net of deferred loan origination fees, costs and discounts (amortized cost). The Company’s ACL methodology also produced an allowance of $13.0 million for our off-balance sheet credit exposures as of June 30, 2026, compared with $8.3 million as of December 31, 2025. The increase from the prior year end was primarily attributable to the initial reserve established for the unfunded commitments acquired in the Heritage acquisition through the provision for unfunded loan commitments. While we believe that the allowance at June 30, 2026 was appropriate to absorb losses from known or inherent risks in the portfolio, no assurance can be given that future economic conditions, interest rate fluctuations, conditions of our borrowers (including fraudulent activity), or natural disasters, which adversely affect our service areas or other circumstances or conditions, including those defined above, will not be reflected in increased provisions for credit losses in the future. Changes in economic and business conditions could have an impact on our market area and on our loan portfolio. We continually monitor these conditions in determining our estimates of needed reserves. However, we cannot predict the extent to which the deterioration in general economic conditions, real estate values, changes in general rates of interest and changes in the financial conditions or business of a borrower may adversely affect a specific borrower’s ability to pay or the value of our collateral. See “Risk Management – Credit Risk Management” contained in the 2025 Form 10-K. 68 Deposits The primary source of funds to support earning assets (loans and investments) is the generation of deposits. Total deposits were $16.29 billion at June 30, 2026, an increase of $4.22 billion, or 34.93%, compared with total deposits of $12.07 billion at December 31, 2025. The increases primarily reflected $1.2 billion of noninterest-bearing deposits and $3.5 billion of interest-bearing deposits assumed in connection with the Heritage acquisition completed during the second quarter of 2026. The composition of deposits is summarized as of the dates presented in the table below. June 30, 2026 December 31, 2025 Balance Percent Balance Percent (Dollars in thousands) Noninterest-bearing deposits $ 8,606,924 52.84 % $ 6,800,691 56.33 % Interest-bearing deposits Investment checking 1,022,887 6.28 % 509,272 4.22 % Money market 5,541,197 34.02 % 3,792,427 31.42 % Savings 427,154 2.62 % 392,817 3.25 % Time deposits 690,539 4.24 % 576,775 4.78 % Total Deposits $ 16,288,701 100.00 % $ 12,071,982 100.00 % The amount of noninterest-bearing deposits in relation to total deposits is an integral element in our strategy of seeking to achieve a low cost of funds. Noninterest-bearing deposits totaled $8.61 billion for the second quarter of 2026, an increase of $1.81 billion, or 26.56%, from $6.80 billion at December 31, 2025. Noninterest-bearing deposits were 52.84% of total deposits at June 30, 2026, compared with 56.33% at December 31, 2025. Interest-bearing non-maturity deposits, which include savings, interest-bearing demand checking, and money market accounts, totaled $7.0 billion at June 30, 2026, an increase of $2.30 billion, or 48.92%, compared to $4.69 billion at December 31, 2025. Time deposits totaled $690.5 million at June 30, 2026, an increase of $113.8 million, or 19.72%, compared to $576.8 million at December 31, 2025. In 2024, the Company issued $300 million of three-month term brokered CDs and entered into pay-fixed, receive-floating interest rate swaps with a notional amount of $300 million and maturities of three years. The swaps carry a weighted average fixed rate of approximately 4.10%, with the Company receiving daily SOFR, and mature in the first quarter of 2027. These interest rate derivative contracts are designated as qualifying cash flow hedges of variability in expected future cash flows attributable to changes in a contractually specified interest rate. During the three-months ended June 30, 2026, $300 million of brokered CDs matured and were replaced with $300 million of three-month FHLB advances. Concurrently, the Company re-designated the related pay-fixed, receive-floating interest rate swaps as cash flow hedges of the FHLB advances. Our deposits are primarily relationship-based and include deposits and customer repurchase agreements (“repos”). As of June 30, 2026, 83% of our deposits consisted of business deposits and 17% consisted of consumer deposits, with the majority of consumer deposits originating from the owners and employees of our business customers. Analyzed business accounts represented approximately 25% of total deposits and primarily consist of operating accounts that utilize a broad range of treasury management services. Because many of our business customers maintain operating account balances in excess of the FDIC insurance limit of $250,000, a significant portion of our deposits are uninsured. Our estimated uninsured deposits were $8.90 billion and $6.56 billion at June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, 47% of our total deposits and customer repos were uncollateralized and uninsured. Our customer deposit relationships represent a diverse range of industries. Overall, there are 13 different industry classifications that represent 2% or more of total deposits as of June 30, 2026. The industry classification with the largest concentrations was finance & insurance, which represent 12%, followed by construction, which represent 8% of our deposits. Our depositors have typically maintained long-standing banking relationships with us for many years. 69 Average total deposits and customer repurchase agreements for the second quarter of 2026 increased by $3.90 billion when compared to the second quarter of 2025. Our average noninterest-bearing deposits was 52.33% of our average total deposits for the second quarter of 2026 compared with 59.72% for the second quarter of 2025. Our cost of deposits was 83 basis points on average for the second quarter of 2026, which compares to 84 basis points for the second quarter of 2025. Borrowings At June 30, 2026, our total borrowings were $1.10 billion, which consisted of $563.4 million of customer repurchase agreements, $500.0 million of FHLB advances, and $39.0 million of subordinated debt. The average interest rate on the FHLB advances was 4.10%. At June 30, 2026, FHLB advances consisted of $300.0 million of three-month advances that replaced maturing brokered CDs and were designated in the related pay-fixed, receive-floating interest rate swaps as cash flow hedges of the FHLB advances, and a $200.0 million advance with a cost of 4.27% maturing in May 2027. At December 31, 2025, our borrowings were $990.6 million including $490.6 million of customer repurchase agreements and $500.0 million of FHLB advances. Refer to Note 8 - Borrowings of the notes to the consolidated financial statements for a more detailed discussion. The Bank offers a repurchase agreement product to its customers known as Citizens Sweep Manager. Under this program, the Bank sells investment securities overnight to customers under an agreement to repurchase the securities the next business day at a price that reflects the market value of the use of these funds for the period. These repurchase agreements are entered into with customers seeking to invest excess demand deposit balances above a predetermined threshold in order to earn interest. As of June 30, 2026 and December 31, 2025, total funds borrowed under these agreements were $563.4 million and $490.6 million, respectively. The average balance for the second quarter of 2026 was $564.8 million with a weighted average interest rate of 1.79%, compared to an average balance of $376.6 million and a weighted average interest rate of 1.66% for the second quarter of 2025. At June 30, 2026, investment securities with carrying values of $2.74 billion were pledged to secure various types of deposits, including $1.03 billion of public funds. In addition, investment securities with carrying values of $2.36 billion were pledged to secure $708.5 million for repurchase agreements, $1.58 billion for unused borrowing capacity and approximately $71.7 million for other purposes as required or permitted by law. At June 30, 2026, loans with a carrying value of $7.56 billion were pledged to secure the borrowings and available lines of credit from the FHLB and the Federal Reserve Bank. At June 30, 2026, the Bank had unused borrowing capacity at the FHLB of $4.52 billion and unused borrowing capacity at the FRB of $1.45 billion. Aggregate Contractual Obligations The following table summarizes the aggregate contractual obligations as of June 30, 2026. Maturity by Period Total Less Than One Year One Year Through Three Years Four Years Through Five Years Over Five Years (Dollars in thousands) Deposits (1) $ 16,288,701 $ 16,222,071 $ 64,151 $ 2,031 $ 448 Customer repurchase agreements (1) 563,405 563,405 — — — Other borrowings 500,000 500,000 — — — Subordinated debt 38,973 — — — 38,973 Deferred compensation 54,395 3,386 6,115 6,768 38,126 Operating leases 96,281 17,727 29,968 19,083 29,503 Equity investments 154,422 102,829 45,262 3,515 2,816 Total $ 17,696,177 $ 17,409,418 $ 145,496 $ 31,397 $ 109,866 (1)Amounts exclude accrued interest. Deposits represent noninterest-bearing, money market, savings, NOW, certificates of deposits, brokered and other deposits held by the Bank. 70 Customer repurchase agreements represent excess amounts swept from customer demand deposit accounts, which mature the following business day and are collateralized by investment securities. These amounts are due to customers. Other borrowings represent amounts due for FHLB advances based on their contractual maturity dates. In connection with the Heritage acquisition, the Company assumed Heritage's $40 million subordinated debt, which bears a fixed rate of 5.0% until May 15, 2027 and had a market value of $38.7 million at the acquisition date. The Company currently expects to redeem the subordinated notes, in whole or in part, on or after May 15, 2027. See Note 8 - Borrowings for additional information. Deferred compensation represents the amounts that are due to former employees based on salary continuation agreements as a result of acquisitions and amounts due to current and retired employees under our deferred compensation plans. Operating leases represent the total minimum lease payments due under non-cancelable operating leases. Refer to Note 14 – Leases of the notes to the Company’s unaudited condensed consolidated financial statements for a more detailed discussion about leases. Equity investments represent commitments to contribute capital to low-income housing tax credit (“LIHTC”), solar tax funds and other CRA related investment partnerships. Off-Balance Sheet Arrangements The following table summarizes the off-balance sheet items at June 30, 2026. Maturity by Period Total Less Than One Year One Year Through Three Years Four Years Through Five Years After Five Years (Dollars in thousands) Commitment to extend credit: Commercial real estate $ 526,118 $ 135,208 $ 176,819 $ 184,559 $ 29,532 Construction 245,206 110,369 132,797 — 2,040 SBA 8,429 4,782 — — 3,647 Commercial and industrial 1,613,278 1,156,329 422,697 5,074 29,178 Dairy & livestock and agribusiness (1) 311,742 114,132 197,375 235 — SFR Mortgage 20,045 3,000 11,823 4,580 642 Consumer and other loans 402,155 77,976 23,235 47,107 253,837 Total commitment to extend credit 3,126,973 1,601,796 964,746 241,555 318,876 Letter of credit commitments 91,055 42,711 48,319 7 18 Total $ 3,218,028 $ 1,644,507 $ 1,013,065 $ 241,562 $ 318,894 (1)Total commitments to extend credit to agribusiness were $28.0 million at June 30, 2026. As of June 30, 2026, we had commitments to extend credit of approximately $3.13 billion, and obligations under letters of credit of $91.1 million. Commitments to extend credit are agreements to lend to customers, provided there is no violation of any material condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Most commitments bear variable interest rates, and many are expected to expire without being drawn upon. As such, the total commitment amounts do not necessarily represent future cash requirements. We apply the same credit underwriting standards to commitments and contingent obligations as we do to on-balance sheet lending activities, including evaluating customers’ creditworthiness individually. As of June 30, 2026 and December 31, 2025, the reserve for unfunded loan commitments was $13.0 million and $8.3 million, respectively, and was included in other liabilities. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing or purchase arrangements. The credit risk involved in issuing letters of credit is substantially the same as that involved in extending loan to customers. When deemed necessary, the Bank hold appropriate collateral supporting those commitments. 71 Capital Resources Our primary source of capital has been the retention of operating earnings and issuance of common stock in connection with periodic acquisitions. In order to ensure adequate levels of capital, we conduct an ongoing assessment of projected sources, needs and uses of capital in conjunction with projected increases in assets and the level of risk. As part of this ongoing assessment, the Board of Directors reviews the various components of our capital plan and capital stress testing. On June 24, 2026, the Board of Directors of CVB declared a quarterly cash dividend of $0.20 per share, payable on July 23, 2026. Dividends are payable at the discretion of the Board of Directors and there can be no assurance that the Board of Directors will continue to pay dividends at the same rate, or at all, in the future. CVB’s ability to pay cash dividends to its shareholders is subject to restrictions under federal and California law, including restrictions imposed by the Federal Reserve, and covenants set forth in various agreements we are a party to. On June 15, 2026, our Board of Directors approved a program to repurchase up to 15,000,000 shares (the "Maximum Amount") of CVB common stock including by means of one or more Rule 10b5-1 plans or other appropriate buy-back arrangements, including open market purchases and private transactions, based on the prices and timing considered appropriate due to prevailing market conditions and other corporate and legal considerations ("2026 Repurchase Program"). This 2026 Repurchase Program replaced in its entirety the Company's previous 2024 share repurchase program under which 5,678,223 shares remained available for repurchase prior to its termination. The 2026 Repurchase Program terminates on the earlier of the repurchase of the Maximum Amount, or five years from the date of authorization. During the second quarter of 2026, the Company purchased 241,034 shares under the 2026 Repurchase Program, at an average price of $21.06 per share for an aggregate purchase price of $5.1 million. As of June 30, 2026, an aggregate of 14,758,966 shares remained available for repurchase under our 2026 Repurchase Program. Total stockholders' equity increased $874.5 million to $3.17 billion at June 30, 2026, compared with total stockholders' equity of $2.30 billion at December 31, 2025. The increase was primarily due to $840.2 million of common shares issued and exchanged as a result of the Heritage acquisition and $99.3 million in net earnings, partially offset by $62.5 million in cash dividends declared and $5.1 million common stock repurchases. The Bank and the Company are required to meet risk-based capital standards under the revised capital framework referred to as Basel III set by their respective regulatory authorities. The risk-based capital standards require the achievement of a minimum total risk-based capital ratio of 8.0%, a Tier 1 risk-based capital ratio of 6.0% and a CET1 capital ratio of 4.5%. In addition, the regulatory authorities require the highest rated institutions to maintain a minimum leverage ratio of 4.0%. To be considered “well-capitalized” for bank regulatory purposes, the Bank and the Company are required to have a CET1 capital ratio equal to or greater than 6.5%, a Tier 1 risk-based capital ratio equal to or greater than 8.0%, a total risk-based capital ratio equal to or greater than 10.0% and a Tier 1 leverage ratio equal to or greater than 5.0%. At June 30, 2026, the Bank and the Company exceeded the minimum risk-based capital ratios and leverage ratios required to be considered “well-capitalized” for regulatory purposes. For further information about capital requirements and our capital ratios, see “Item 1. Business – Capital Adequacy Requirements” as described in our Annual Report on Form 10-K for the year ended December 31, 2025. 72 The table below presents the Company’s and the Bank’s risk-based and leverage capital ratios for the periods presented. June 30, 2026 December 31, 2025 Capital Ratios Adequately Capitalized Ratios Minimum Required Plus Capital Conservation Buffer Well Capitalized Ratios CVB Financial Corp. Consolidated Citizens Business Bank, N.A. CVB Financial Corp. Consolidated Citizens Business Bank, N.A. Tier 1 leverage capital ratio 4.00% 4.00% 5.00% 11.72% 11.41% 11.62% 11.46% Common equity Tier 1 capital ratio 4.50% 7.00% 6.50% 14.73% 14.33% 15.89% 15.66% Tier 1 risk-based capital ratio 6.00% 8.50% 8.00% 14.73% 14.33% 15.89% 15.66% Total risk-based capital ratio 8.00% 10.50% 10.00% 15.61% 14.94% 16.66% 16.44% ASSET/LIABILITY AND MARKET RISK MANAGEMENT Liquidity and Cash Flow The objective of liquidity management is to ensure that funds are available in a timely manner to meet our financial obligations when they come due without incurring unnecessary cost or risk, or causing a disruption to our normal operating activities. This includes the ability to manage unplanned decreases or changes in funding sources, accommodating loan demand and growth, funding investments, repurchasing securities, paying creditors as necessary, and other operating or capital needs. We regularly assess the amount and likelihood of projected funding requirements through a review of factors such as historical deposit volatility and funding patterns, present and forecasted market and economic conditions, individual customer funding needs, as well as current and planned business activities. Management has an Asset/Liability Committee that meets monthly. This committee analyzes the cash flows from loans, investments, deposits and borrowings, as well as the input assumptions and results from various models. In addition, the Company has a Balance Sheet Management Committee of the Board of Directors that meets at least quarterly to review the Company’s balance sheet and liquidity position. This committee provides oversight to the balance sheet and liquidity management process and recommends policy guidelines for the approval of our Board of Directors, and courses of action to address our actual and projected liquidity needs. In general, our liquidity is managed daily by controlling the level of liquid assets as well as the use of funds provided by the cash flow from the investment portfolio, loan demand, deposit fluctuations, and borrowings. Our definition of liquid assets includes cash and cash equivalents in excess of minimum levels needed to fulfill normal business operations, short-term investment securities, and other anticipated near term cash flows from investments. In addition to on balance sheet liquidity, we have significant off-balance sheet sources of liquidity. To meet unexpected demands, lines of credit are maintained with correspondent banks, FHLB and the Federal Reserve, although availability under these lines of credit are subject to certain conditions. In addition to $1.10 billion of cash and cash equivalents on the balance sheet at June 30, 2026, we had substantial sources of off-balance sheet liquidity. These sources of available liquidity include $4.5 billion of secured and unused capacity with FHLB, $1.5 billion of secured unused borrowing capacity at the Fed’s discount window, more than $558.3 million of unpledged AFS securities that could be pledged at the discount window and $305.0 million of unsecured lines of credit. In addition to these borrowing sources, the Bank has capacity to utilize additional brokered deposits as of June 30, 2026. We can also obtain additional liquidity from deposit growth by utilizing state and national wholesale markets. Our primary sources of funds for the Company are deposits, customer repurchase agreements and borrowings. Total deposits and customer repos of $16.85 billion at June 30, 2026 increased $4.29 billion, or 34.15%, compared with total deposits and customer repos of $12.56 billion at December 31, 2025. As of June 30, 2026, total borrowings consisted of $500.0 million of FHLB advances, at an average cost of approximately 4.10%, and $39.0 million of subordinated debt assumed in the Heritage acquisition. Our deposit levels and cost of deposits may fluctuate from period-to-period due to a variety of factors, including the stability of our deposit base, prevailing interest rates, and market conditions. At June 30, 2026, our deposits and customer repurchase agreements that are neither collateralized nor insured were approximately $7.94 billion, or 47% of our total deposits and customer repos. 73 Additional sources of liquidity include principal and interest payments from our investment portfolio. Our total investment portfolio totaled $5.68 billion at June 30, 2026, an increase of $722.8 million from $4.95 billion at December 31, 2025. The increase was primarily due to approximately $519.0 million of investment securities acquired and retained from the Heritage acquisition as well as approximately $511.5 million of purchases of AFS securities during the second quarter of 2026. At June 30, 2026, our AFS investment securities totaled $3.46 billion, inclusive of a pre-tax net unrealized loss of $323.5 million. Pre-tax unrealized loss increased by $15.7 million from prior year end, resulting primarily from fluctuation in market interest rates. Market risk is partly managed by $700 million notional pay fixed swaps hedging the fair value of the AFS portfolio. The decrease in fair value of our AFS securities was partially offset by a $12.6 million increase in the fair value of our derivatives that hedge the change in value of our AFS portfolio. CVB is a holding company separate and apart from the Bank that must provide for its own liquidity and must service its own obligations. Substantially all of CVB’s revenues are obtained from dividends declared and paid by the Bank to CVB. There are statutory and regulatory provisions that could limit the ability of the Bank to pay dividends to CVB. In addition, our regulators could limit the ability of the Bank or CVB to pay dividends or make other distributions. Below is a summary of our average cash position and statement of cash flows for the six months ended June 30, 2026 and 2025. For further details, see our “Condensed Consolidated Statements of Cash Flows (Unaudited)” under Part I, Item 1 of this report. Six Months Ended June 30, 2026 2025 (Dollars in thousands) Average cash and cash equivalents $ 632,094 $ 401,722 Percentage of total average assets 3.56 % 2.65 % Net cash provided by operating activities $ 450,535 $ 94,986 Net cash provided by investing activities 799,238 357,140 Net cash (used in) provided by financing activities (521,803 ) 81,812 Net increase in cash and cash equivalents $ 727,970 $ 533,938 For the six months ended June 30, 2026, average cash and cash equivalents increased by $230.4 million, or 57.4%, to $632.1 million, compared to $401.7 million for the same period last year. At June 30, 2026, cash and cash equivalents totaled $1.10 billion. This represented an increase of $728.0 million, or 193.41%, from $376.4 million at December 31, 2025. Of this total, cash on deposit at the Federal Reserve increased by $640.9 million compared to December 31, 2025. The increase in cash and cash equivalents was primarily due to $542.7 million of net cash acquired in the Heritage acquisition and the sale of SFR mortgage loan pools acquired form Heritage at a fair value of $327.5 million, which settled in early June 2026. Interest Rate Sensitivity Management During periods of changing interest rates, the ability to re-price interest-earning assets and interest-bearing liabilities can influence net interest income, the net interest margin, and consequently, our earnings. Interest rate risk is managed by attempting to control the spread between rates earned on interest-earning assets and the rates paid on interest-bearing liabilities within the constraints imposed by market competition in our service area. The primary goal of interest rate risk management is to control exposure to interest rate risk, within policy limits approved by the Board of Directors. These limits and guidelines reflect our risk appetite for interest rate risk over both short-term and long-term horizons. We measure these risks and their impact by identifying and quantifying exposures through the use of sophisticated simulation and valuation models, which, as described in additional detail below, are employed by management to understand net interest income (“NII”) at risk and economic value of equity (“EVE”) at risk. Net interest income at risk sensitivity captures asset and liability repricing mismatches and is considered a shorter term measure, while EVE sensitivity captures mismatches within the period end balance sheets through the financial instruments’ respective maturities or estimated durations and is considered a longer term measure. 74 One of the primary methods that we use to quantify and manage interest rate risk is simulation analysis, which we use to model NII from the Company’s balance sheet under various interest rate scenarios. We use simulation analysis to project rate sensitive income under many scenarios. The analyses may include rapid and gradual ramping of interest rates, rate shocks, basis risk analysis, and yield curve scenarios. Specific balance sheet management strategies are also analyzed to determine their impact on NII and EVE. Key assumptions in the simulation analysis relate to the behavior of interest rates and pricing spreads, the changes in product balances, and the behavior of loan and deposit clients in different rate environments. This analysis incorporates several assumptions, the most material of which relate to the re-pricing characteristics and balance fluctuations of deposits with indeterminate or non-contractual maturities, and prepayment of loans and securities. Our interest rate risk policy measures the sensitivity of our net interest income over both one-year and two-year horizons. The simulation model estimates the impact of changes in interest rates on interest income from all interest-earning assets and interest expense paid on all interest-bearing liabilities reflected on our balance sheet. This sensitivity analysis is compared to policy limits, which specify a maximum tolerance level for net interest income exposure over one-year and two-year periods, assuming no balance sheet growth, under instantaneous rate shock scenarios of plus or minus 100 and 200 basis points, subject to prevailing market rate conditions. The simulation model assumes parallel yield curve shifts that are ramped up or down over a 12-month period and measures the resulting sensitivity of net interest income during year 1, year 2, and the cumulative two-year period. The following table presents the Company’s projected net interest income sensitivity as of the dates indicated under various interest rate shock scenarios over the applicable measurement periods. Estimated Net Interest Income Sensitivity (1) June 30, 2026 Interest Rate Scenario Year 1 Year 2 Year 1 + Year 2 (Cumulative) + 200 basis points 3.56% 6.99% 5.33% + 100 basis points 1.89% 3.64% 2.79% - 100 basis points -1.18% -3.81% -2.54% - 200 basis points -2.08% -8.11% -5.18% Estimated Net Interest Income Sensitivity (1) December 31, 2025 Interest Rate Scenario 12-month Period 24-month Period (Cumulative) + 200 basis points 3.85% 5.71% - 200 basis points -2.66% -6.19% (1)Percentage change from base scenario. Based on our current simulation models, we believe that the interest rate risk profile of the balance sheet is modestly asset sensitive over both a one-year and a two-year horizon. The estimated sensitivity does not necessarily represent a forecast and the results may not be indicative of actual changes to our net interest income. These estimates are based upon a number of assumptions including: the nature and timing of interest rate levels including yield curve shape, re-pricing characteristics and balance fluctuations of deposits with indeterminate or non-contractual maturities, prepayments on loans and securities, pricing strategies on loans and deposits, and replacement of asset and liability cash flows. While the assumptions used are based on current economic and local market conditions, there is no assurance as to the predictive nature of these conditions including how customer preferences or competitor influences might change. We also perform valuation analysis, which incorporates all cash flows over the estimated remaining life of all material balance sheet and derivative positions. The valuation of the balance sheet, at a point in time, is defined as the discounted present value of all asset cash flows and derivative cash flows minus the discounted present value of all liability cash flows, the net of which is referred to as EVE. The sensitivity of EVE to changes in the level of interest rates is a measure of the longer-term re-pricing risk and options risk embedded in the balance sheet. EVE uses instantaneous changes in rates, as shown in the table below. Assumptions about the timing and variability of balance sheet cash flows are critical in the EVE analysis. Particularly important are the assumptions driving prepayments and the expected duration and pricing of the indeterminate deposit portfolios. EVE sensitivity is reported in both upward and downward rate shocks. At June 30, 2026 and December 31, 2025, the EVE profile indicates a decline in net balance sheet value due to instantaneous downward changes in rates. From December 31, 2025 to June 30, 2026, our EVE sensitivity to declining interest rates increased modestly. Our overall sensitivity of EVE to changes in interest rates is generally modest. 75 Economic Value of Equity Sensitivity June 30, 2026 December 31, 2025 400 bp decrease in interest rates 15.6% 15.9% 300 bp decrease in interest rates 17.3% 16.6% 200 bp decrease in interest rates 18.5% 17.8% 100 bp decrease in interest rates 19.3% 18.6% Base 19.9% 19.1% 100 bp increase in interest rates 20.4% 19.3% 200 bp increase in interest rates 20.6% 19.2% 300 bp increase in interest rates 20.5% 18.6% 400 bp increase in interest rates 20.3% 18.2% As EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (i.e., the current year). Further, EVE does not take into account factors such as future balance sheet growth, changes in asset and liability mix, changes in yield curve relationships, and changing product spreads that could mitigate the adverse impact of changes in interest rates.