Commercial Bank of California Achieves Strong Profitability, Continued Growth in First Half of 2026

Highlights Include:

• Total assets, total deposits, and net loans all increased significantly over the comparable prior year figures
• Net interest income increased 15.0% year-over-year, driven by a significant expansion of net interest margin
• Net income rose sharply, by 38.2%, due to strengthening revenues

IRVINE, CALIF. (August 30, 2026) – Commercial Bank of California (“CBC” or “Bank”), a BauerFinancial Five-Star Superior Bank, today reported net income of $25.9 million for the first half of 2026, compared to $18.7 million for the first six months of 2025, an increase of $7.2 million, or 38.2%.  For the second quarter of 2026, the Bank’s net income was $13.4 million, versus net income of $9.9 million for the same period of 2025, representing an increase of $3.5 million, or 35.5%. Net interest income for the first six months of 2026 increased by 15.0%, or $9.4 million, to $72.2 million from $62.8 million for the same period in 2025.  This growth was mainly due to a net interest margin expansion of 32 basis points from 3.55% for the first half of 2025 to 3.88% for the same period of 2026.  Most of CBC’s financial metrics reflected organic growth in earning assets over the levels of the prior year.Provisions for credit losses declined to $1.3 million in the first half of 2026 from $1.9 million for the first six months of 2025, as the Bank benefited from continued strength in credit quality and borrower performance in recent periods, while still building its allowance for credit losses to keep pace with loan portfolio growth.  Other operating income rose by $365,000, from $11.9 million in the first half of 2025 to $12.2 million for the same period in 2026, primarily driven by increases in gains on sales of the guaranteed portions of SBA loans, SBA servicing fees, and payments business fee income. Other operating expenses were essentially stable, rising by $412,000 to a 2026 first half total of $46.8 million from $46.4 million in the first half of 2025.  The modest increase was primarily driven by increased headcount, annual salary adjustments, and higher incentive and commission compensation, mostly offset by the absence of merger-related expenditures incurred in the first half of 2026, favorable FAS 91 cost adjustments, and lower amortization of intangible assets.  The Bank’s returns on average assets and equity strengthened to 1.36% and 14.75% for the first six months of 2026 from 1.05% and 12.45% for the same period a year ago.  CBC’s efficiency ratio improved to 54.7% in 2026’s first half from 62.3% for the same period in 2025.

CBC’s total assets at June 30, 2026 were $4.0 billion, an increase of $281 million, or 7.6%, over the $3.7 billion of total assets at this time a year ago.  Loans expanded from $2.6 billion at June 30, 2025 to $2.8 billion at June 30, 2026, an increase of $162 million, or 6.2%.  Deposits increased to $3.5 billion at June 30, 2026 from $3.1 billion at the same point in 2025, an increase of $404 million, or 13.2%.  This significant growth was primarily driven by robust retail deposit generation from the Bank’s regional offices, specialty deposit group, premier banking group, and payments business, reflecting continued success in attracting and deepening client relationships. Noninterest-bearing demand deposits represented 37.8% of total deposits at June 30, 2026, and at 79.5% the ratio of net loans to total deposits remained at a healthy level.

Total capital increased to $360.1 million at June 30, 2026 from $314.1 million a year earlier.  This increase was principally due to the retention of earnings from CBC’s continued profitability and a modest reduction in Accumulated Other Comprehensive Loss.  The Bank’s capital ratios continue to be well above all applicable regulatory standards for well-capitalized status, the highest category of capital strength established by banking regulators.  At June 30, 2026 the Bank’s Tier 1 Leverage Ratio was 9.27%, its Tier 1 Capital to Risk Weighted Assets ratio was 11.78%, and its ratio of Total Capital to Risk Weighted Assets was 12.85%.

Ash Patel, Chairman, President, and Chief Executive Officer, commented: “CBC’s positive momentum continued through the second quarter and first half of 2026. Our results again reflect three key factors: growth in earning assets, expansion of net interest income, and the solid asset quality that has long been among CBC’s foundational attributes. CBC’s balance sheet remains distinguished by enviable asset quality, strong liquidity, and a robust capital position — hallmarks that give us the agility to take decisive action in pursuit of emerging opportunities.

“As we look ahead, CBC remains focused on disciplined growth, expanded revenue opportunities, and careful expense management. Our progress in these areas is being strengthened by our growing adoption of AI, which is helping improve operating efficiency while creating more meaningful and rewarding roles for our team members. Although we operate in an ever-changing economic environment, we are confident of our ability to build on our momentum and deliver continued success through the remainder of the year and beyond.”

He concluded: “CBC’s continued success would not be possible without the support of our loyal clients and dedicated team members, for which we extend our heartfelt thanks.”

About Commercial Bank of California

Commercial Bank of California is a full-service bank and diversified financial services company serving businesses, professionals, and communities in the greater Los Angeles and San Francisco Bay areas of California. Recognized as a BauerFinancial, Inc. “Five-Star Superior Bank” for its financial strength and stability, CBC provides the financial expertise of a major bank while maintaining a commitment to personalized service for every CBC client.  More information about CBC’s custom solutions for your business is available at www.cbcal.com.

This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical fact, included herein may constitute forward-looking statements.  Although Commercial Bank of California believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Important factors that could cause actual results to differ materially from Commercial Bank of California’s expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which Commercial Bank of California conducts its operations.