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GARDEN GROVE, Calif.--(BUSINESS WIRE)--US Metro Bancorp (OTCQX: USMT): US Metro Bancorp (“Bancorp”) is a bank holding company, with a single subsidiary, US Metro Bank (“Bank”). On a consolidated basis, Bancorp earned $3.1 million in the third quarter of 2026, compared to $3.5 million in the second quarter of 2026. For the nine months ending September 30, 2026, the consolidated Bancorp earned $9.9 million compared to $8.0 million for the nine months ending September 30, 2025. On a year-to-date b.

SALEM, Ore.--(BUSINESS WIRE)--Oregon Bancorp, Inc. (OTCBB: ORBN) (the “Company”), parent company of Willamette Valley Bank, reported net income of $746 thousand, or $0.30 per share, for the third quarter of 2026, compared to net income of $604 thousand, or $0.24 per share, for the second quarter of 2026. The Company generated a return on average assets of 0.6% and a return on average equity of 4.0% for the quarter. Third-quarter results included $212 thousand of trailing expenses associated wit.

Amerant Bancorp NYSE: AMTB reported third-quarter 2026 net income of $25.7 million, or $0.65 per diluted share, as higher net interest income, wider margins and continued credit-quality improvement lifted profitability.

Return on assets reached 1.00%, while return on equity rose to 11.29%, both the company’s strongest quarterly levels in several years. President and CEO Carlos Iafigliola said the results marked progress in the company’s effort to build a “more profitable and resilient franchise” through balance-sheet optimization, expense discipline and improved risk management.

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Profitability and Margin Expansion
Net interest income increased $7.9 million from the second quarter to $90.5 million. Net interest margin expanded 25 basis points sequentially to 3.77%, from 3.52%.

Chief Financial Officer Sharymar Calderón said the increase reflected higher interest income from loans and investment securities, along with reduced interest expense on deposits and Federal Home Loan Bank advances. Loan repricing, liquidity deployment into earning assets and fees from early loan exits were among the contributors to margin expansion. The company also recorded additional interest on nonperforming loans that were resolved during the quarter.

Non-interest income was $18.3 million, up modestly from the prior quarter, while non-interest expense increased 0.3% to $69.1 million. Higher professional fees and employee costs were partly offset by lower advertising expense and higher other real estate owned income.

Pre-tax, pre-provision net revenue rose to $39.7 million, the highest quarterly level since the fourth quarter of 2022, from $31.9 million in the second quarter. The efficiency ratio improved to 63.51% from 68.37%, moving closer to the company’s approximately 60% target.

For the fourth quarter, Amerant expects net interest margin of 3.65% to 3.70%. Calderón said the guidance represents improvement versus a normalized third-quarter margin after accounting for nonrecurring benefits from nonperforming-loan collections and early loan exits. The outlook assumes continued pressure on funding costs, offset by variable-rate loan repricing, deposit repricing discipline and growth in lower-cost deposits.

Loan Growth, Deposits and Wealth Management
Total assets ended the quarter at $10.2 billion, down from $10.3 billion in the second quarter. Gross loans increased $207.8 million, or 3%, to $7.1 billion, driven principally by single-family residential and commercial lending. Growth was partly offset by lower commercial real estate, owner-occupied and non-depository financial institution loans, as well as elevated payoffs.

The company expects loans to reach approximately $7.3 billion by the end of the fourth quarter, supported primarily by commercial and industrial lending programs and residential lending.

Total deposits declined $109.6 million to $8.2 billion. The decrease was primarily tied to lower balances from large domestic commercial fund providers, partially offset by increases in private banking deposits, non-interest-bearing demand deposits and time deposits.

Amerant migrated approximately $270 million of low-cost interest-bearing balances into non-interest-bearing demand accounts during the quarter without losing the related accounts, management said. The company also added approximately $100 million in non-interest-bearing deposits through growth. Total deposit costs declined to 2.07%, from 2.21% in the previous quarter.

International deposits declined slightly, with Venezuelan customer deposits down $96.8 million, or 3.9%. Deposits from countries other than Venezuela rose $87.3 million, or 12%. Iafigliola characterized the Venezuela decline as transactional rather than structural, saying commercial and corporate activity in the country had required capital expenditures and distributions. He also noted that some funds moved into wealth-management accounts.

Assets under management increased $77.9 million to $3.45 billion, including $76.5 million of net new assets. Calderón said the growth reflected new talent additions and deeper cross-selling with commercial clients. The company expects total deposits to reach roughly $8.5 billion in the fourth quarter, with anticipated growth split approximately 60% from international sources and 40% from domestic sources.

Credit Quality and Capital Actions
Nonperforming loans declined $21.6 million, or 12.6%, to $149.5 million, equal to 1.46% of total assets. The reduction was driven by payoffs, including three commercial and commercial real estate relationships, partly offset by downgrades in commercial, owner-occupied and CRE lending. Subsequent to quarter-end, a $5 million commercial loan downgraded during the quarter was paid off.

Classified loan balances also declined, as payoffs and paydowns totaled $80.3 million, including four large relationships. However, the provision for credit losses rose to $6.2 million from $4.8 million in the second quarter, reflecting higher specific reserves associated mainly with four commercial relationships.

Gross charge-offs totaled $3.9 million and were partly offset by $1.9 million of recoveries. Amerant expects fourth-quarter gross charge-offs in a range of 30 to 35 basis points, including potential write-offs from existing specific reserves. Its allowance for credit losses ratio increased to 1.36% from 1.27%.

Amerant’s common equity Tier 1 ratio rose to 12.07% from 11.94%, supported by quarterly earnings. The company completed a registered offering of $50 million of 7% senior notes due 2031 on Sept. 17, adding long-term holding-company funding and liquidity.

The board authorized a share-repurchase program of up to $50 million through Dec. 31, 2027. During the third quarter, the company repurchased about 70,592 shares at a weighted average price of $28.47 per share. Amerant also declared a quarterly common dividend of $0.09 per share, payable Nov. 27.

2027 Outlook
Management said it views the 1% return-on-assets result as a new baseline and intends to improve on it over time. Iafigliola said the company is conducting capacity planning and retooling commercial and domestic banking operations to support steady loan growth, while continuing to exit relationships that do not meet its income or risk objectives.

Calderón said early 2027 quarterly non-interest expense is expected to run at roughly $69.5 million to $70 million, reflecting hiring to support growth. Management expects those investments to be partly offset by contract renegotiations and other cost-saving actions, while revenue growth supports continued improvement in the efficiency ratio.

About Amerant Bancorp (NYSE:AMTB)Amerant Bancorp is the bank holding company for Amerant Bank, a regional financial institution headquartered in Coral Gables, Florida. Through its banking subsidiary, the company provides financial products and services to consumers, businesses and institutions, with a primary focus on markets in Florida and Texas.

Amerant Bank offers deposit accounts, consumer and commercial loans, residential mortgages, home equity products, credit cards and treasury management services. It also provides wealth management and investment services, along with digital banking tools that allow customers to manage accounts, transfer funds and make payments online and through mobile devices.

The company traces its origins to 1970, when it was established as Commercebank.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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LOUISVILLE, Ky.--(BUSINESS WIRE)--Republic Bancorp, Inc. (“Republic” or the “Company”) reported third quarter 2026 net income and Diluted Earnings per Class A Common Share (“Diluted EPS”) of $31.1 million and $1.59, representing increases of 4% and 5% from the $29.7 million and $1.52 reported for the third quarter of 2025. As a result, the Company achieved a return on average assets (“ROA”) and a return on average equity (“ROE”) of 1.74% and 10.48% for the third quarter of 2026. Logan Pichel, P.

DUNKIRK, N.Y., Oct. 23, 2026 (GLOBE NEWSWIRE) -- Lake Shore Bancorp, Inc. (“Lake Shore Bancorp”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), announced today that the Board of Directors declared a cash dividend of $0.09 per share on its outstanding common stock on October 21, 2026. The dividend is expected to be paid on November 11, 2026 to shareholders of record as of November 2, 2026.

About Lake Shore

   Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. Lake Shore Bancorp’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about Lake Shore Bancorp is available at

www.mylsbank.com.

Safe-Harbor

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about Lake Shore Bancorp’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to Lake Shore Bancorp as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, dividend policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized. 

Source: Lake Shore Bancorp, Inc.
Category: Financial

Investor Relations/Media Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012

WHITE PLAINS, N.Y., Oct. 22, 2026 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), reported net income of $10.7 million, or $0.81 per basic share and $0.79 per diluted share, for the three months ended September 30, 2026 compared to net income of $11.9 million, or $0.90 per basic share and $0.87 per diluted share, for the three months ended September 30, 2025. In addition, the Company reported net income of $30.4 million, or $2.31 per basic share and $2.25 per diluted share, for the nine months ended September 30, 2026 compared to net income of $33.6 million, or $2.54 per basic share and $2.47 per diluted share, for the nine months ended September 30, 2025.

Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated “As we close out the third quarter of 2026 and begin the fourth quarter, we are pleased to report continuing growth of our loan portfolio, particularly in our construction loan portfolio.”

“Focusing on high demand, high growth submarkets in the Bronx, Rockland, Orange, and Sullivan Counties, we continue to grow the portfolio while also providing much needed housing in low- and moderate-income communities.”

“Demand for construction loans throughout these submarkets continues to demonstrate robust growth and we look forward to continuing our efforts as a responsible corporate citizen to meet this growing demand going forward.” Mr. Martinek continued.

“At September 30, 2026, construction loan commitments and loans-in-process outstanding increased by approximately 18.2% as compared to the third quarter of 2025, with over $763 million in total unfunded loan commitments outstanding, and representing a 12.2% increase over the amount of such total commitments outstanding at December 31, 2025.”

Highlights for the three months and nine months ended September 30, 2026 are as follows:

Performance metrics continue to be strong with a return on average total assets ratio of 2.00%, a return on average shareholders’ equity ratio of 11.54%, and an efficiency ratio of 41.50% for the three months ended September 30, 2026. For the nine months ended September 30, 2026, the Company reported a return on average total assets ratio of 1.97%, a return on average shareholders’ equity ratio of 11.16%, and an efficiency ratio of 42.36%.Total assets increased $152.5 million, or 7.4%, to $2.2 billion at September 30, 2026 from $2.1 billion at December 31, 2025, driven by loan portfolio growth of $160.0 million, or 8.6%, to $2.0 billion at September 30, 2026 from $1.9 billion at December 31, 2025. Our allowance for credit losses related to loans totaled $4.7 million, or 0.23% of total loans at September 30, 2026, compared to $4.7 million, or 0.25% of total loans at December 31, 2025.Total stockholders’ equity increased by $19.0 million, or 5.4%, to $370.7 million, or 16.73% of total assets as of September 30, 2026 from $351.7 million, or 17.04% of total assets as of December 31, 2025.
Balance Sheet Summary

Total assets increased $152.5 million, or 7.4%, to $2.2 billion at September 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $160.0 million, partially offset by a decrease in cash and cash equivalents of $8.5 million.

Cash and cash equivalents decreased $8.5 million, or 10.5%, to $72.6 million at September 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $160.0 million in net loans.

Equity securities decreased $341,000, or 1.3%, to $26.2 million at September 30, 2026 from $26.6 million at December 31, 2025. The decrease in equity securities was attributable to market depreciation of $1.3 million due to market interest rate volatility during the nine months ended September 30, 2026, partially offset by the purchase of $1.0 million in equity securities during the nine months ended September 30, 2026.

Securities held-to-maturity increased $359,000, or 2.0%, to $18.7 million at September 30, 2026 from $18.3 million at December 31, 2025 due to the purchase of $2.0 million in municipal securities, partially offset by pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities.

Loans, net of the allowance for credit losses, increased $160.0 million, or 8.6%, to $2.0 billion at September 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $207.3 million in construction loans, partially offset by decreases of $37.0 million in commercial and industrial loans, $5.0 million in multi-family loans, $3.3 million in mixed-use loans, $1.6 million in non-residential loans, $104,000 in one-to-four family loans, and $15,000 in consumer loans.

During the nine months ended September 30, 2026, we originated loans totaling $966.4 million, which include commitments and funded loans, consisting primarily of $914.8 million in construction loans, $26.3 million in commercial and industrial loans, $24.0 million in multi-family loans, $675,000 in mixed-use loans, and $500,000 in non-residential loans. The $914.8 million in construction loans had $393.5 million, or 43.0%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The commercial and industrial loans had $19.1 million, or 72.7%, disbursed at loan closing as of September 30, 2026.

The allowance for credit losses related to loans was $4.7 million at September 30, 2026 and December 31, 2025. Although our total loan portfolio increased $160.0 million, or 8.6%, from December 31, 2025 to September 30, 2026, portfolios carrying higher allowance rates due to longer terms or higher credit risks have decreased. During the nine months ended September 30, 2026, commercial and industrial loans decreased $37.0 million, or 24.6%, and residential, multi-family, mixed use and non-residential mortgage loans decreased $10.0 million, or 2.7%. These decreases were mostly offset by an increase in the construction loan portfolio, which carries a lower allowance rate, during the same period.

The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at September 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $83.1 million, or 12.2%, in off-balance sheet commitments from December 31, 2025 to September 30, 2026.

The allowance for credit losses for held-to-maturity securities increased $9,000, or 7.1%, to $135,000 at September 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio.

Premises and equipment decreased $339,000, or 1.3%, to $25.0 million at September 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets. Property held for investment was $1.3 million at both September 30, 2026 and December 31, 2025.

Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at September 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.

Bank owned life insurance (“BOLI”) increased $557,000, or 2.1%, to $27.0 million at September 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.

Accrued interest receivable increased $626,000, or 5.1%, to $12.9 million at September 30, 2026 from $12.2 million at December 31, 2025 due to an increase in the loan portfolio.

Right of use assets — operating decreased $542,000, or 11.6%, to $4.1 million at September 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.

Other assets increased $603,000, or 5.5%, to $11.6 million at September 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $1.3 million in suspense accounts, partially offset by decreases of $592,000 in tax assets and $146,000 in prepaid expenses.

Total deposits increased $202.7 million, or 12.5%, to $1.8 billion at September 30, 2026 from $1.6 billion at December 31, 2025. The increase in deposits was primarily due to increases in certificates of deposit of $87.8 million, or 9.8%, NOW/money market accounts of $72.8 million, or 24.1%, and non-interest-bearing deposits of $53.7 million, or 19.8%, partially offset by a decrease in savings account balances of $11.6 million, or 8.2%.

The increase of $87.8 million in certificates of deposit consisted of increases of $201.8 million, or 54.5%, in brokered certificates of deposit, partially offset by decreases of $63.5 million, or 94.0%, in non-brokered listing services certificates of deposit and $50.5 million, or 11.3%, in retail certificates of deposit.

The increase in brokered certificates of deposit was due to management’s strategy to reduce short term borrowings due to the potential for further increases in interest rates. The decrease in non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.

Advance payments by borrowers for taxes and insurance increased $523,000, or 22.2%, to $2.9 million at September 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.

Borrowings decreased $70.0 million to no borrowings at September 30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce interest rate risk with less reliance on short term borrowings.

Lease liability – operating decreased $499,000, or 10.4%, to $4.3 million at September 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

Accounts payable and accrued expenses increased $858,000, or 5.0%, to $18.2 million at September 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $674,000, deferred compensation of $424,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and suspense account – loan closings of $44,000, partially offset by decreases in accrued interest expense of $504,000 and accrued expenses of $64,000.

Stockholders’ equity increased $19.0 million, or 5.4% to $370.7 million at September 30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $30.4 million for the nine months ended September 30, 2026, the amortization expense of $1.6 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $589,000 in earned employee stock ownership plan shares coupled with a reduction of $391,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $42,000 in other comprehensive income. These increases were offset by dividends declared of $9.3 million and stock repurchases and excise taxes of $4.8 million.

Results of Operations for the Three Months Ended September 30, 2026 and 2025

Net Interest Income

Net interest income was $26.1 million for the three months ended September 30, 2026, as compared to $25.9 million for the three months ended September 30, 2025. The increase in net interest income of $154,000, or 0.6%, was primarily due to a decrease in interest expense that exceeded a decrease in interest income caused by a decrease in the cost of funds for interest-bearing liabilities that exceeded a decrease in the yield on interest-earning assets.

Total interest and dividend income decreased $608,000, or 1.5%, to $38.7 million for the three months ended September 30, 2026 from $39.3 million for the three months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 61 basis points from 8.15% for the three months ended September 30, 2025 to 7.54% for the three months ended September 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $123.7 million, or 6.4%, to $2.1 billion for the three months ended September 30, 2026 from $1.9 billion for the three months ended September 30, 2025.

The decrease in the yield on interest-earning assets was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever the Prime Rate changes.

Interest expense decreased $762,000, or 5.7%, to $12.6 million for the three months ended September 30, 2026 from $13.3 million for the three months ended September 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 39 basis points from 3.91% for the three months ended September 30, 2025 to 3.52% for the three months ended September 30, 2026. The decrease in the cost of interest-bearing liabilities was offset by an increase in the average balance of interest-bearing liabilities of $62.6 million, or 4.6%, to $1.4 billion for the three months ended September 30, 2026 from $1.4 billion for the three months ended September 30, 2025.

Our net interest margin decreased 29 basis points, or 5.5%, to 5.09% for the three months ended September 30, 2026 compared to 5.38% for the three months ended September 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on interest-earning assets and a smaller decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded no credit loss expense for the three months ended September 30, 2026 and September 30, 2025.

With respect to the allowance for credit losses for loans, we charged off $37,000 during the quarter ended September 30, 2026, as compared to charge-offs of $75,000 during the quarter ended September 30, 2025. The charge-offs during the quarters ended September 30, 2026 and September 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of $8,000 during the quarter ended September 30, 2026 compared to recoveries of $99,000 during the quarter ended September 30, 2025. The recoveries during the quarters ended September 30, 2026 and September 30, 2025 comprised of recoveries from previously charged-off unpaid overdraft on demand deposit accounts.

Non-Interest Income

The Company recorded non-interest loss of $185,000 for the three months ended September 30, 2026 compared to non-interest income of $1.0 million for the three months ended September 30, 2025. The decrease of $1.2 million, or 118.2%, in total non-interest income was primarily due to a decrease of $1.3 million in unrealized gain/(loss) on equity securities and a loss of $10,000 on the disposition of fixed assets. These were partially offset by increases of $51,000 in other loan fees and service charges, $16,000 in BOLI income, and $13,000 in miscellaneous other non-interest income.

The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $1.1 million on equity securities during the quarter ended September 30, 2026 compared to an unrealized gain of $170,000 on equity securities during the quarter ended September 30, 2025. The unrealized loss of $1.1 million and unrealized gain of $170,000 on equity securities during the quarters ended September 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.

The increase of $51,000 in other loan fees and service charges was due to increases of $62,000 in ATM/debit card/ACH fees and $3,000 in deposit account fees, partially offset by a decrease of $14,000 in loan service charges and fees. The increase of $16,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $13,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.

Non-Interest Expense

Non-interest expense increased $402,000, or 3.9%, to $10.7 million for the three months ended September 30, 2026 from $10.4 million for the three months ended September 30, 2025. The increase resulted primarily from increases of $757,000 in other operating expenses, $43,000 in salaries and employee benefits, $26,000 in occupancy expense, and $10,000 in equipment expense, partially offset by decreases of $238,000 in real estate owned expense, $103,000 in outside data processing expense, and $93,000 in advertising expense.

Other non-interest operating expense increased $757,000, or 27.0%, to $3.6 million for the three months ended September 30, 2026 from $2.8 million for the three months ended September 30, 2025 due mainly to increases of $844,000 in miscellaneous other non-interest expense, $64,000 in consulting fees, $60,000 in service contracts expense, $52,000 in personnel recruitment expense, $8,000 in directors compensation, $4,000 in directors, officers and employees expense, $4,000 in office supplies, and $3,000 in insurance expense. These increases were partially offset by decreases of $179,000 in regulatory fees, $46,000 in legal fees, $21,000 in telephone expense, $20,000 in audit and accounting expense, and $16,000 in dues and subscription expense.

The increase of $844,000 in miscellaneous other non-interest expense was mainly due to increases of $729,000 in miscellaneous charge-offs, $66,000 in public company expense, $48,000 in miscellaneous other non-interest expense, and $2,000 in check and correspondent bank charges, partially offset by a decrease of $1,000 in postage expense. The increase of $729,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Income Taxes

We recorded income tax expense of $4.5 million and $4.7 million for the three months ended September 30, 2026 and 2025, respectively. For the three months ended September 30, 2026, we had approximately $259,000 in tax exempt income, compared to approximately $216,000 in tax exempt income for the three months ended September 30, 2025. Our effective income tax rate was 29.6% for the three months ended September 30, 2026 compared to 28.5% for the three months ended September 30, 2025.

Results of Operations for the Nine Months Ended September 30, 2026 and 2025

Net Interest Income

Net interest income was $74.9 million for the nine months ended September 30, 2026 as compared to $75.3 million for the nine months ended September 30, 2025. The decrease in net interest income of $401,000, or 0.5%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.

Total interest and dividend income decreased $4.8 million, or 4.2%, to $110.7 million for the nine months ended September 30, 2026 from $115.5 million for the nine months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 61 basis points from 8.10% for the nine months ended September 30, 2025 to 7.50% for the nine months ended September 30, 2026, partially offset by an increase in the average balance of interest earning assets of $67.9 million, or 3.6%, to $2.0 billion for the nine months ended September 30, 2026 from $1.9 billion for the nine months ended September 30, 2025.

The decrease in the yield on interest-earning assets was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever the Prime Rate changes.

Interest expense decreased $4.4 million, or 11.0%, to $35.8 million for the nine months ended September 30, 2026 from $40.2 million for the nine months ended September 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 47 basis points from 3.95% for the nine months ended September 30, 2025 to 3.48% for the nine months ended September 30, 2026, partially offset by an increase in average interest bearing liabilities of $12.5 million, or 0.9%, to $1.4 billion for the nine months ended September 30, 2026 from $1.4 billion for the nine months ended September 30, 2025.

Net interest margin decreased 21 basis points, or 4.0%, to 5.07% for the nine months ended September 30, 2026 compared to 5.28% for the nine months ended September 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on interest-earning assets and a smaller decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded a credit loss expense of $860,000 for the nine months ended September 30, 2026 compared to a credit loss expense of $237,000 for the nine months ended September 30, 2025. The credit loss expense of $860,000 for the nine months ended September 30, 2026 was comprised of credit loss expense for loans of $568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense of $237,000 for the nine months ended September 30, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $568,000 for the nine months ended September 30, 2026 was primarily due to replenishment of the allowance for credit losses due to charge-offs totaling $584,000.

The credit loss expense for off-balance sheet commitments of $283,000 for the nine months ended September 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the nine months ended September 30, 2026 was primarily due to an increase in the municipal bond portfolio.

The credit loss expense for loans of $62,000 for the nine months ended September 30, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the nine months ended September 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

With respect to the allowance for credit losses for loans, we charged off $584,000 during the nine months ended September 30, 2026 as compared to charge-offs of $678,000 during the nine months ended September 30, 2025. The charge-offs during the nine months ended September 30, 2026 comprised of $500,000 against a commercial and industrial loan and $84,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the nine months ended September 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of $8,000 during the nine months ended September 30, 2026 compared to recoveries of $534,000 during the nine months ended September 30, 2025. The recoveries during the quarter ended September 30, 2026 comprised of recoveries from previously charged-off unpaid overdraft on demand deposit accounts. The recoveries of $534,000 during the nine months ended September 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non-residential mortgage loan and $184,000 from previously charged-off unpaid overdrafts on demand deposit accounts.

Non-Interest Income

Non-interest income for the nine months ended September 30, 2026 was $1.3 million compared to non-interest income of $3.1 million for the nine months ended September 30, 2025. The decrease of $1.9 million, or 59.7%, in total non-interest income was primarily due to decreases of $1.9 million in unrealized gain/(loss) on equity securities, $82,000 in other loan fees and service charges, and a loss of $10,000 on the disposition of fixed assets, partially offset by increases of $57,000 in miscellaneous other non-interest income and $43,000 in BOLI income.

The decrease in unrealized gain on equity securities was due to an unrealized loss of $1.3 million on equity securities during the nine months ended September 30, 2026 compared to an unrealized gain of $521,000 on equity securities during the nine months ended September 30, 2025. Both the unrealized loss of $1.3 million on equity securities during the 2026 period and the unrealized gain of $521,000 on equity securities during the 2025 period were due to market interest rate volatility during both periods.

The decrease of $82,000 in other loan fees and service charges was due to a decrease of $240,000 in other loan fees and loan servicing fees, partially offset by an increase of $154,000 in ATM/debit card/ACH fees and $3,000 in deposit account fees. The increase of $57,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter. The increase in BOLI income of $43,000 was due to an increase in the yield on BOLI assets.

Non-Interest Expense

Non-interest expense increased $773,000, or 2.5%, to $32.3 million for the nine months ended September 30, 2026 from $31.5 million for the nine months ended September 30, 2025. The increase resulted primarily from increases of $965,000 in other operating expenses, $448,000 in salaries and employee benefits, and $199,000 in occupancy expense, partially offset by decreases of $277,000 in real estate owned expense, $232,000 in advertising expense, $76,000 in outside data processing expense, and $16,000 in equipment expense.

Other non-interest expense increased $965,000, or 11.5%, to $9.4 million for the nine months ended September 30, 2026 from $8.4 million for the nine months ended September 30, 2025 due mainly to increases of $1.2 million in miscellaneous other non-interest expense, $120,000 in service contract expense, $87,000 in consulting fees, $37,000 in insurance expense, $37,000 in directors, officers, and employee expense, $28,000 in directors compensation, and $11,000 in personnel recruitment expense. These increases were partially offset by decreases of $368,000 in regulatory fees, $61,000 in audit and accounting fees, $60,000 in telephone expense, $34,000 in dues and subscriptions expense, $25,000 in office supplies expense, and $3,000 in legal fees.

The increase of $1.2 million in miscellaneous other non-interest expense was mainly due to increases of $1.1 million in miscellaneous charge-offs, $112,000 in public company expenses, and $24,000 in check and correspondent bank charges, partially offset by decreases of $4,000 in postage expense and $3,000 in miscellaneous other non-interest expense. The increase of $1.1 million in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.

Income Taxes

We recorded income tax expense of $12.6 million and $13.1 million for the nine months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026, we had approximately $759,000 in tax exempt income, compared to approximately $630,000 in tax exempt income for the nine months ended September 30, 2025. Our effective income tax rates were 29.3% and 28.0% for the nine months ended September 30, 2026 and 2025, respectively.

Asset Quality

Non-performing assets totaled $17.4 million at September 30, 2026 compared to no non-performing assets at December 31, 2025. The non-performing assets at September 30, 2026 comprised of one construction loan totaling $13.9 million and two commercial and industrial loans totaling $3.5 million that are in foreclosure and are secured by a seven story multi-family building with 63 apartment units and one ground floor commercial space occupied by a supermarket located in the Bronx, New York. We do not currently anticipate any losses on these three loans because we believe the outstanding loan balance is sufficiently collateralized by the value of the security property.

Our ratio of non-performing assets to total assets was 0.79% at September 30, 2026 compared to 0.00% at December 31, 2025.

The Company’s allowance for credit losses related to loans was $4.7 million, or 0.23% of total loans at September 30, 2026, compared to $4.7 million, or 0.25% of total loans at December 31, 2025. Based on a review of the loans that were in the loan portfolio at September 30, 2026, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of expected losses in the loan portfolio.

In addition, at September 30, 2026, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $1.2 million and the allowance for credit losses related to held-to-maturity debt securities totaled $135,000.

Capital

The Company’s total stockholders’ equity to assets ratio was 16.73% as of September 30, 2026. At September 30, 2026, the Company had the ability to borrow $1.0 billion from the Federal Reserve Bank of New York and $8.0 million from Atlantic Community Bankers Bank.

The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of September 30, 2026, the Bank had a tier 1 leverage capital ratio of 16.79% and a total risk-based capital ratio of 15.15%.

The Company commenced its third stock repurchase program on December 10, 2025 whereby the Company is authorized to repurchase up to 1,400,435, or 10%, of the Company’s issued and outstanding common stock. As of September 30, 2026, the Company had repurchased 239,894 shares of common stock under its third repurchase program, at a cost of $5.6 million, including commission costs and Federal excise taxes.

About NorthEast Community Bancorp

NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

Forward Looking Statement

This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the impact of changing political conditions or federal government shutdowns, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACT:Kenneth A. Martinek Chairman and Chief Executive Officer  PHONE:(914) 684-2500  NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)   September 30, December 31,  2026
 2025
  (In thousands, except share  and per share amounts)ASSETS      Cash and amounts due from depository institutions $7,711  $10,456 Interest-bearing deposits  64,918   70,719 Total cash and cash equivalents  72,629   81,175 Certificates of deposit  100   100 Equity securities  26,229   26,570 Securities held-to-maturity (net of allowance for credit losses of $135 and $126, respectively)  18,674   18,315 Loans receivable  2,020,340   1,860,066 Deferred loan costs, net  36   268 Allowance for credit losses  (4,723)  (4,731)Net loans  2,015,653   1,855,603 Premises and equipment, net  25,038   25,377 Investments in restricted stock, at cost  543   410 Bank owned life insurance  26,990   26,433 Accrued interest receivable  12,854   12,228 Property held for investment  1,306   1,334 Right of Use Assets – Operating  4,114   4,656 Right of Use Assets – Financing  340   343 Other assets  11,567   10,964 Total assets $2,216,037  $2,063,508 LIABILITIES AND STOCKHOLDERS’ EQUITY      Liabilities:      Deposits:      Non-interest bearing $325,624  $271,924 Interest bearing  1,493,944   1,344,977 Total deposits  1,819,568   1,616,901 Advance payments by borrowers for taxes and insurance  2,875   2,352 Borrowings  -   70,000 Lease Liability – Operating  4,297   4,796 Lease Liability – Financing  464   434 Accounts payable and accrued expenses  18,183   17,325 Total liabilities  1,845,387   1,711,808        Stockholders’ equity:      Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding $—  $— Common stock, $0.01 par value; 75,000,000 shares authorized; 13,766,631 shares and 13,963,432 shares outstanding, respectively  138   140 Additional paid-in capital  108,957   111,575 Unearned Employee Stock Ownership Plan (“ESOP”) shares  (4,827)  (5,218)Retained earnings  266,107   244,970 Accumulated other comprehensive gain  275   233 Total stockholders’ equity  370,650   351,700 Total liabilities and stockholders’ equity $2,216,037  $2,063,508   NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)   Three Months Ended September 30, Nine Months Ended September 30,  2026
 2025 2026
 2025  (In thousands, except per share amounts) (In thousands, except per share amounts)INTEREST INCOME:            Loans $37,858  $38,281 $108,074  $111,903Interest-earning deposits  482   716  1,638   2,824Securities  331   282  988   798Total Interest Income  38,671   39,279  110,700   115,525INTEREST EXPENSE:            Deposits  11,409   11,929  33,421   37,915Borrowings  1,159   1,401  2,372   2,303Financing lease  10   10  30   29Total Interest Expense  12,578   13,340  35,823   40,247Net Interest Income  26,093   25,939  74,877   75,278Provision for credit loss  —   —  860   237Net Interest Income after Provision for Credit Loss  26,093   25,939  74,017   75,041NON-INTEREST (LOSS) INCOME:            Other loan fees and service charges  688   638  1,907   1,989Loss on disposition of equipment  (10)  -  (10)  -Earnings on bank owned life insurance  193   177  557   514Unrealized (loss) gain on equity securities  (1,098)  170  (1,341)  521Other  42   29  140   83Total Non-Interest (Loss) Income  (185)  1,014  1,253   3,107NON-INTEREST EXPENSES:            Salaries and employee benefits  5,459   5,416  17,448   17,000Occupancy expense  764   738  2,426   2,227Equipment  235   225  679   695Outside data processing  711   814  2,232   2,307Advertising  22   115  108   340Real estate owned expense  -   238  -   515Other  3,562   2,805  9,358   8,394Total Non-Interest Expenses  10,753   10,351  32,251   31,478INCOME BEFORE PROVISION FOR INCOME TAXES  15,155   16,602  43,019   46,670PROVISION FOR INCOME TAXES  4,483   4,737  12,600   13,068NET INCOME $10,672  $11,865 $30,419  $33,602  NORTHEAST COMMUNITY BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)   Three Months Ended September 30, Nine Months Ended September 30,  2026
 2025
 2026
 2025
  (In thousands, except per share amounts) (In thousands, except per share amounts)Per share data:            Earnings per share - basic $0.81  $0.90  $2.31  $2.54 Earnings per share - diluted  0.79   0.87   2.25   2.47 Weighted average shares outstanding - basic  13,131   13,252   13,156   13,228 Weighted average shares outstanding - diluted  13,566   13,632   13,537   13,626 Performance ratios/data:            Return on average total assets  2.00%  2.35%  1.97%  2.25%Return on average shareholders' equity  11.54%  13.84%  11.16%  13.40%Net interest income $26,093  $25,939  $74,877  $75,278 Net interest margin  5.09%  5.38%  5.07%  5.28%Efficiency ratio  41.50%  38.40%  42.36%  40.16%Net charge-off ratio  0.01%  0.00%  0.04%  0.01%             Loan portfolio composition:        September 30, 2026  December 31, 2025One-to-four family       $3,010  $3,114 Multi-family        301,486   306,508 Mixed-use        21,862   25,197 Total residential real estate        326,358   334,819 Non-residential real estate        36,907   38,463 Construction        1,543,624   1,336,329 Commercial and industrial        113,408   150,397 Consumer        43   58 Gross loans        2,020,340   1,860,066 Deferred loan cost, net        36   268 Total loans       $2,020,376  $1,860,334 Asset quality data:            Loans past due over 90 days and still accruing       $-  $- Non-accrual loans        17,444   - Total non-performing assets       $17,444  $—              Allowance for credit losses to total loans        0.23%  0.25%Allowance for credit losses to non-performing loans        27.08%  0.00%Non-performing loans to total loans        0.86%  0.00%Non-performing assets to total assets        0.79%  0.00%             Bank's Regulatory Capital ratios:            Total capital to risk-weighted assets        15.15%  15.62%Common equity tier 1 capital to risk-weighted assets        14.90%  15.36%Tier 1 capital to risk-weighted assets        14.90%  15.36%Tier 1 leverage ratio        16.79%  16.39%  NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)   Three Months Ended September 30, 2026 Three Months Ended September 30, 2025  Average  Interest Average Average  Interest Average  Balance and dividend Yield Balance and dividend Yield  (In thousands, except yield/cost information) (In thousands, except yield/cost information)Loan receivable gross $1,962,183  $37,858  7.72% $1,826,726  $38,281  8.38%Securities  45,008   323  2.87%  39,901   275  2.76%Federal Home Loan Bank stock  543   8  5.89%  1,070   7  2.62%Other interest-earning assets  44,799   482  4.30%  61,177   716  4.68%Total interest-earning assets  2,052,533   38,671  7.54%  1,928,874   39,279  8.15%Allowance for credit losses  (4,752)        (4,724)      Non-interest-earning assets  90,933         91,219       Total assets $2,138,714        $2,015,369                          Interest-bearing demand deposit $377,489  $2,894  3.07% $298,408  $2,559  3.43%Savings and club accounts  130,622   657  2.01%  134,258   730  2.17%Certificates of deposit  798,602   7,858  3.94%  807,285   8,640  4.28%Total interest-bearing deposits  1,306,713   11,409  3.49%  1,239,951   11,929  3.85%Borrowed money  121,146   1,169  3.86%  125,346   1,411  4.50%Total interest-bearing liabilities  1,427,859   12,578  3.52%  1,365,297   13,340  3.91%Non-interest-bearing demand deposit  316,512         284,100       Other non-interest-bearing liabilities  24,473         23,046       Total liabilities  1,768,844         1,672,443       Equity  369,870         342,926       Total liabilities and equity $2,138,714        $2,015,369                          Net interest income / interest spread    $26,093  4.01%    $25,939  4.24%Net interest rate margin        5.09%        5.38%Net interest earning assets $624,674        $563,577       Average interest-earning assets                  to interest-bearing liabilities  143.75%        141.28%        NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)   Nine Months Ended September 30, 2026 Nine Months Ended September 30, 2025  Average  Interest Average Average  Interest Average  Balance and dividend Yield Balance and dividend Yield  (In thousands, except yield/cost information) (In thousands, except yield/cost information)Loan receivable gross $1,871,662  $108,074  7.70% $1,783,195  $111,903  8.37%Securities  45,158   966  2.85%  38,176   775  2.71%Federal Home Loan Bank stock  497   22  5.90%  637   23  4.81%Other interest-earning assets  51,729   1,638  4.22%  79,145   2,824  4.76%Total interest-earning assets  1,969,046   110,700  7.50%  1,901,153   115,525  8.10%Allowance for credit losses  (4,692)        (4,892)      Non-interest-earning assets  91,797         94,435       Total assets $2,056,151        $1,990,696                          Interest-bearing demand deposit $349,140  $7,999  3.05% $290,663  $7,405  3.40%Savings and club accounts  133,457   1,989  1.99%  138,116   2,221  2.14%Certificates of deposit  803,627   23,433  3.89%  860,890   28,289  4.38%Total interest-bearing deposits  1,286,224   33,421  3.46%  1,289,669   37,915  3.92%Borrowed money  85,718   2,402  3.74%  69,812   2,332  4.45%Total interest-bearing liabilities  1,371,942   35,823  3.48%  1,359,481   40,247  3.95%Non-interest-bearing demand deposit  297,161         276,529       Other non-interest-bearing liabilities  23,754         20,433       Total liabilities  1,692,857         1,656,443       Equity  363,294         334,253       Total liabilities and equity $2,056,151        $1,990,696                          Net interest income / interest spread    $74,877  4.01%    $75,278  4.15%Net interest rate margin        5.07%        5.28%Net interest earning assets $597,104        $541,672       Average interest-earning assets                  to interest-bearing liabilities  143.52%        139.84%      

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), announced today that its Board of Directors declared a quarterly cash dividend of $0.14 per share. The dividend is payable on or about November 19, 2026 to shareholders of record as of the close of business on November 5, 2026. About OP Bancorp OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Glo.

LOS ANGELES--(BUSINESS WIRE)--OP Bancorp (the “Company”) (NASDAQ: OPBK), parent company of Open Bank, today reported:

($ in thousands, except per share data)

As of and For the Quarter

Third Quarter Highlights

3Q2026

2Q2026

3Q2025

Comparisons reflect 3Q26 vs. 2Q26

Income Statement:

Income Statement

Net interest income

$

22,207

$

20,068

$

20,346

Revenue growth driven by higher net interest income. Net interest income increased, supported by continued loan growth. Higher provision reflected loan growth and changes in criticized loans. Noninterest income

5,295

5,651

4,130

Revenue

27,502

25,719

24,476

Provision for (reversal of) credit losses

1,597

(149

)

1,175

Noninterest expense

15,512

14,826

13,629

Net income

$

7,763

$

7,978

$

6,703

Diluted Earnings Per Share (“EPS”)

$

0.52

$

0.53

$

0.45

Net interest margin (1)

3.27

%

3.08

%

3.26

%

Efficiency ratio (2)

56.40

57.64

55.68

Balance Sheet:

Balance Sheet

Average loans (3)

$

2,334,125

$

2,253,270

$

2,132,230

Average loans increased 4%. Average deposits increased 4%. Average deposits

2,408,059

2,315,821

2,229,591

Credit Quality:

Credit Quality

Net charge-offs (1) to average gross loans

0.14

%

0.03

%

0.04

%

Net charge-offs increased but remained relatively low. Allowance for credit losses on loans to gross loans

1.26

1.24

1.27

Allowance coverage remained adequate. Selected Metrics:

Performance and Capital

Book value per share

$

16.07

$

15.99

$

14.88

Book value per share continued to increase, reflecting growth in shareholders’ equity. Return on average assets ("ROAA") (1)

1.11

%

1.18

%

1.04

%

ROAA and ROAE remained robust. Return on average equity ("ROAE") (1)

12.94

13.61

12.36

Shareholders' equity to asset ratio

8.54

8.70

8.47

The Company maintained a solid equity position. Tier 1 leverage ratio

9.09

9.21

9.01

Tier 1 leverage remained robust, supporting future growth.   (1)

Annualized. (2)

Represents noninterest expense divided by the sum of net interest income and noninterest income. (3)

Includes loans held-for-sale. Sang K. Oh, President and Chief Executive Officer:

“We delivered solid results in the third quarter, with net income of $7.8 million and diluted EPS of $0.52. Continued loan growth supported higher net interest income and further expansion in net interest margin. Book value per share continued to increase, reflecting growth in shareholders’ equity, while we maintained appropriate capital levels. As we enter the final quarter of 2026, we remain committed to sustainable growth, disciplined risk management and operating efficiency,” said Sang K. Oh, President and Chief Executive Officer.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin

($ in thousands)

For the Three Months Ended

% Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Interest Income

Interest income

$

41,377

$

38,193

$

38,522

8

%

7

%

Interest expense

19,170

18,125

18,176

6

5

Net interest income

$

22,207

$

20,068

$

20,346

11

%

9

%

($ in thousands)

For the Three Months Ended

Average
Yield/Rate
Change 3Q2026
vs.

3Q2026

2Q2026

3Q2025

Interest
Income/
Expense

Average
Yield/Rate(1)

Interest
Income/
Expense

Average
Yield/Rate(1)

Interest
Income/
Expense

Average
Yield/Rate(1)

2Q2026

3Q2025

Interest-earning Assets:

Loans

$

37,627

6.41

%

$

35,731

6.36

%

$

35,001

6.52

%

5 bps

(11) bps

Total interest-earning assets

41,377

6.08

38,193

5.87

38,522

6.16

21 bps

(8) bps

Interest-bearing Liabilities:

Interest-bearing deposits

17,905

3.79

16,891

3.77

17,442

4.07

2 bps

(28) bps

Total interest-bearing liabilities

19,170

3.84

18,125

3.82

18,176

4.06

2 bps

(22) bps

Ratios:

Net interest income / interest rate spreads

22,207

2.24

20,068

2.05

20,346

2.10

19 bps

14 bps

Net interest margin

3.27

3.08

3.26

19 bps

1 bps

Total deposits / cost of deposits

17,905

2.95

16,891

2.93

17,442

3.10

2 bps

(15) bps

Total funding liabilities / cost of funds

19,170

3.03

18,125

3.00

18,176

3.13

3 bps

(10) bps

($ in thousands)

For the Three Months Ended

Average Yield
Change 3Q2026
vs.

3Q2026

2Q2026

3Q2025

Interest
Income

Average
Yield (1)

Interest
Income

Average
Yield (1)

Interest
Income

Average
Yield (1)

2Q2026

3Q2025

Loan Yield Component:

Contractual interest rate

$

36,973

6.30

%

$

35,335

6.29

%

$

34,263

6.39

%

1 bps

(9) bps

Recurring accretion / amortization

239

0.04

226

0.04

299

0.05

— bps

(1) bps

Nonrecurring (2)

415

0.07

170

0.03

439

0.08

4 bps

(1) bps

Yield on loans

$

37,627

6.41

%

$

35,731

6.36

%

$

35,001

6.52

%

5 bps

(11) bps

Third Quarter 2026 vs. Second Quarter 2026

Net interest income increased by $2.1 million, or 11%, primarily driven by continued loan growth and the normalization of Federal Reserve Bank account income following a prior-quarter accrual adjustment. These benefits were partially offset by higher interest expense resulting from growth in average interest-bearing deposit balances. As a result, net interest margin increased by 19 basis points to 3.27%.

Interest-bearing Deposits in Other Banks: Interest income increased by $1.1 million, primarily reflecting the absence of a one-time Federal Reserve Bank accrual adjustment recorded in the prior quarter, as well as higher average balances. Loans: Interest income increased by $1.9 million, driven largely by an $80.9 million or 4% increase in average loan balances, reflecting growth in CRE and home mortgage loans, along with a 5-basis-point increase in average loan yield to 6.41%. Deposits: Interest expense increased by $1.0 million, primarily due to a $76.4 million or 4% increase in average interest-bearing deposit balances, including growth in money market and time deposit accounts. Despite the higher balances, the average cost of interest-bearing deposits increased only 2 basis points to 3.79%, reflecting relatively stable funding costs during the quarter. Third Quarter 2026 vs. Third Quarter 2025

Net interest income increased by $1.9 million, or 9%, primarily driven by balance sheet growth and lower deposit rates. These favorable factors were partially offset by lower loan yields. As a result, the net interest margin increased by one basis point to 3.27%.

Loans: Interest income increased by $2.6 million, largely attributable to a $201.9 million increase in average loan balances, reflecting continued growth in CRE loans. The increase was partially offset by an 11-basis-point decline in loan yields, reflecting the impact of the federal funds rate cuts during the prior year and the repricing of adjustable-rate loans and newly originated loans. Deposits: Interest expense increased by $463 thousand, mainly due to a $173.3 million increase in average interest-bearing deposit balances, driven mainly by growth in time deposits. The increase was partially offset by a 28-basis-point decline in costs of interest-bearing deposits, reflecting the repricing of time deposits and money market accounts following the federal funds rate cuts. Provision for Credit Losses

($ in thousands)

For the Three Months Ended

$ Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Provision for (reversal of) credit losses on loans

$

1,557

$

(131

)

$

1,206

$

1,688

$

351

Provision for (reversal of) credit losses on off-balance sheet exposure

40

(18

)

(31

)

58

71

Provision for (reversal of) credit losses

$

1,597

$

(149

)

$

1,175

$

1,746

$

422

Third Quarter 2026 vs. Second Quarter 2026

Provision for credit losses on loans increased by $1.7 million. The increase primarily reflected higher general reserve requirements associated with loan growth and changes in credit quality, including an increase in criticized loans. Higher specific reserves due to lower net collateral values of individually evaluated loans also contributed to the increase.

Third Quarter 2026 vs. Third Quarter 2025

Provision for credit losses on loans increased by $351 thousand. The increase primarily reflected higher specific reserves due to lower net collateral values of individually evaluated loans and higher general reserve requirements associated with loan growth, partially offset by lower qualitative reserve requirements.

Noninterest Income

($ in thousands)

For the Three Months Ended

% Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Noninterest Income

Service charges on deposits

$

468

$

515

$

725

(9

)%

(35

)%

Loan servicing fees, net of amortization

980

974

724

1

35

Gains on sale of loans

3,277

3,370

2,037

(3

)

61

Other income

570

792

644

(28

)

(11

)

Total noninterest income

$

5,295

$

5,651

$

4,130

(6

)%

28

%

Third Quarter 2026 vs. Second Quarter 2026

Noninterest income decreased by $356 thousand, or 6%, primarily driven by lower other income.

Gains on Sale of Loans: Decreased by $93 thousand, primarily reflecting a lower average premium rate, partially offset by higher SBA loan sales volume. The Bank sold $51.1 million in SBA loans at an average premium rate of 8.06%, compared with $49.1 million sold at an average premium rate of 8.17% in the prior period. Other Income: Decreased by $222 thousand, mainly due to higher unrealized losses on CRA mutual funds from higher market interest rates. Third Quarter 2026 vs. Third Quarter 2025

Noninterest income increased by $1.2 million, or 28%, primarily due to higher gains on sale of loans.

Gains on Sale of Loans: Increased by $1.2 million, driven by stronger SBA loan sale activity and higher premium rates. The Bank sold $51.1 million in SBA loans at an average premium rate of 8.06%, compared with $36.8 million sold at an average premium rate of 6.71% in the prior period. Noninterest Expense

($ in thousands)

For the Three Months Ended

% Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Noninterest Expense

Salaries and employee benefits

$

9,452

$

9,733

$

8,892

(3

)%

6

%

Occupancy and equipment

1,827

1,901

1,676

(4

)

9

Data processing and communication

513

380

263

35

95

Professional fees

1,129

454

419

149

169

FDIC insurance and regulatory assessments

385

387

428

(1

)

(10

)

Promotion and advertising

224

104

126

115

78

Directors’ fees

155

164

151

(5

)

3

Foundation donation and other contributions

750

811

671

(8

)

12

Other expenses

1,077

892

1,003

21

7

Total noninterest expense

$

15,512

$

14,826

$

13,629

5

%

14

%

Third Quarter 2026 vs. Second Quarter 2026

Noninterest expense increased by $686 thousand, or 5%, primarily due to higher professional fees.

Professional Fees: Increased by $675 thousand, primarily due to higher non-recurring legal and professional service expenses incurred during the quarter. Third Quarter 2026 vs. Third Quarter 2025

Noninterest expense increased by $1.9 million, or 14%, primarily due to higher professional fees and salaries and employee benefits.

Salaries and Employee Benefits: Increased by $560 thousand, primarily due to staffing growth, annual salary adjustments effective April 2026, and higher incentive accruals associated with increased SBA loan production. Professional Fees: Increased by $710 thousand, primarily due to higher non-recurring legal and professional service expenses compared to the prior year. Income Tax Expense

Third Quarter 2026 vs. Second Quarter 2026

Income tax expense decreased by $434 thousand to $2.6 million, primarily due to lower pre-tax income and a lower effective tax rate. The effective tax rate decreased to 25.3% from 27.8%, primarily due to return-to-provision adjustments associated with the prior-year tax returns.

Third Quarter 2026 vs. Third Quarter 2025

Income tax expense decreased by $339 thousand to $2.6 million, primarily reflecting a lower effective tax rate, partially offset by higher pre-tax income. The effective tax rate decreased to 25.3% from 30.7%, mainly due to the absence of a one-time deferred tax asset revaluation recognized in the prior-year period and return-to-provision adjustments associated with the prior-year tax returns.

BALANCE SHEET HIGHLIGHTS

Loans

($ in thousands)

As of

% Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

CRE

$

1,199,046

$

1,190,117

$

1,092,808

1

%

10

%

SBA

302,201

278,554

256,211

8

18

C&I

186,444

221,623

214,419

(16

)

(13

)

Home mortgage

600,017

568,512

587,641

6

2

Consumer & other

121

255

138

(53

)

(12

)

Gross loans

$

2,287,829

$

2,259,061

$

2,151,217

1

%

6

%

The following table summarizes the loan activity for the periods indicated:

($ in thousands)

For the Three Months Ended

3Q2026

2Q2026

3Q2025

Beginning Balance

$

2,259,061

$

2,234,259

$

2,071,580

Originations

149,094

169,340

130,695

Net change in line utilization

(27,340

)

35,399

31,167

Purchases

19,593

5,426

8,930

Sales

(51,102

)

(51,907

)

(36,136

)

Payoffs & paydowns

(84,652

)

(123,664

)

(71,526

)

Other

23,175

(9,792

)

16,507

Total

28,768

24,802

79,637

Ending balance

$

2,287,829

$

2,259,061

$

2,151,217

As of September 30, 2026 vs. June 30, 2026

Gross loans increased by $28.8 million or 1%, primarily reflecting lower CRE payoffs, partially offset by lower line utilization in C&I loans.

As of September 30, 2026 vs. September 30, 2025

Gross loans increased by $136.6 million or 6%, primarily driven by growth in CRE and SBA loans from originations, partially offset by lower line utilization in C&I loans.

The following table presents loan originations and the corresponding weighted average contractual rates for the periods indicated:

($ in thousands)

For the Three Months Ended

% Change in
Amounts 3Q2026
vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Amount

Rate

Amount

Rate

Amount

Rate

CRE

$

51,654

6.30

%

$

92,042

6.78

%

$

98,799

6.36

%

(44

)%

(48

)%

SBA

29,611

7.96

32,403

7.94

15,051

8.72

(9

)

97

C&I

14,083

6.41

8,321

7.28

9,984

6.96

69

41

Home mortgage

53,746

6.09

36,574

5.94

6,861

6.69

47

683

Gross loans (1)

$

149,094

6.56

%

$

169,340

6.85

%

$

130,695

6.69

%

(12

)%

14

%

The following table presents the composition of gross loans by interest rate type accompanied by the weighted average contractual rates as of the periods indicated:

($ in thousands)

As of

3Q2026

2Q2026

3Q2025

%

Rate

%

Rate

%

Rate

Fixed rate

27

%

5.78

%

28

%

5.77

%

31

%

5.61

%

Hybrid rate

42

6.12

41

6.05

41

5.89

Variable rate

31

6.80

31

6.90

28

8.02

Gross loans

100

%

6.24

%

100

%

6.24

%

100

%

6.40

%

The following table presents the maturity of gross loans by interest rate type accompanied by the weighted average contractual rates for the periods indicated:

($ in thousands)

As of September 30, 2026

Within One Year

One Year Through
Five Years

After Five Years

Total

Amount

Rate

Amount

Rate

Amount

Rate

Amount

Rate

Fixed rate

$

150,633

5.49

%

$

276,723

6.57

%

$

189,074

4.86

%

$

616,430

5.78

%

Hybrid rate

—

—

208,068

5.71

762,455

6.23

970,523

6.12

Variable rate

112,676

7.14

179,254

6.82

408,946

6.70

700,876

6.80

Gross loans

$

263,309

6.20

%

$

664,045

6.37

%

$

1,360,475

6.18

%

$

2,287,829

6.24

%

Allowance for Credit Losses

The following table summarizes the activity in the allowance for credit losses for the periods presented:

($ in thousands)

As of and For the Three Months Ended

$ Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Allowance for credit losses on loans, beginning

$

28,100

$

28,406

$

26,286

$

(306

)

$

1,814

Provision for (reversal of) credit losses on loans

1,557

(131

)

1,206

1,688

351

Gross charge-offs

(922

)

(224

)

(195

)

(698

)

(727

)

Gross recoveries

101

49

2

52

99

Net charge-offs

(821

)

(175

)

(193

)

(646

)

(628

)

Allowance for credit losses on loans, ending

$

28,836

$

28,100

$

27,299

$

736

$

1,537

Allowance for credit losses on off-balance sheet exposure, beginning

$

268

$

286

$

360

$

(18

)

$

(92

)

Provision for (reversal of) credit losses on off-balance sheet exposure

40

(18

)

(31

)

58

71

Allowance for credit losses on off-balance sheet exposure, ending

$

308

$

268

$

329

$

40

$

(21

)

Asset Quality

($ in thousands)

As of and For the Three Months Ended

% or Basis Point Change
3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Accruing loans 30-89 days past due

$

12,201

$

10,486

$

5,386

16

%

127

%

As a % of gross loans

0.53

%

0.46

%

0.25

%

7 bps

28 bps

Nonaccrual loans (1)(2)

$

18,032

$

16,372

$

12,312

10

%

46

%

Loans 90 days or more past due, accruing

—

892

—

(100

)

—

Nonperforming loans (2)

18,032

17,264

12,312

4

46

OREO

—

—

845

—

(100

)

Nonperforming assets (2)

$

18,032

$

17,264

$

13,157

4

%

37

%

Nonperforming loans to gross loans

0.79

%

0.76

%

0.57

%

3 bps

22 bps

Nonperforming assets to gross loans & OREO

0.79

0.76

0.61

3 bps

18 bps

Nonperforming assets to total assets

0.64

0.63

0.50

1 bps

14 bps

Criticized loans (3)(4) by risk categories:

Special mention loans

$

51,728

$

8,834

$

8,695

486

%

495

%

Classified loans (5)

25,828

24,594

19,380

5

33

Total criticized loans

$

77,556

$

33,428

$

28,075

132

%

176

%

Classified loans to gross loans

1.13

%

1.09

%

0.90

%

4 bps

23 bps

Criticized loans to gross loans

3.39

1.48

1.31

191 bps

208 bps

Allowance for credit losses ratios:

As a % of gross loans

1.26

%

1.24

%

1.27

%

2 bps

(1) bps

As a % of nonperforming loans

160

163

222

(3

)%

(62

)%

As a % of nonperforming assets

160

163

207

(3

)

(47

)

As a % of classified loans

112

114

141

(2

)

(29

)

As a % of criticized loans

37

84

97

(47

)

(60

)

Net charge-offs

$

821

$

175

$

193

NM

325

%

Net charge-offs (6) to average gross loans

0.14

0.03

0.04

11 bps

10 bps

  NM — Not Meaningful (1) Excludes loans held-for-sale. (2) Excludes the guaranteed portion of loans totaling $38.3 million, $30.5 million and $17.6 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively. (3) Excludes the guaranteed portion of loans totaling $43.5 million, $35.8 million and $20.8 million as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively. (4) Consists of special mention, substandard, doubtful and loss categories. (5) Consists of substandard, doubtful and loss categories. (6) Annualized. Overall credit quality remained generally sound during the quarter. We believe the allowance for credit losses on loans remained adequate at 1.26% of gross loans as of September 30, 2026.

Accruing loans 30-89 days past-due increased by $1.7 million, primarily driven by two CRE loans totaling $7.7 million moving into this category, partially offset by $6.3 million of loans returning to less than 30 days past due, primarily home mortgage and SBA loans. Nonperforming loans increased by $768 thousand, primarily driven by $2.2 million of loans migrating into nonaccrual status, partially offset by a $1.1 million decrease in the balances of existing nonperforming loans. Criticized loans increased by $44.1 million, primarily driven by $45.7 million of loans newly entering the category during the quarter. The new additions were primarily CRE loans rated Special Mention. Special Mention loans increased by $42.9 million, primarily driven by four relationships totaling $41.5 million. An $8.2 million C&I relationship and a $5.9 million CRE relationship were downgraded primarily due to DCR covenant shortfalls but remain current. A $6.2 million CRE loan is in early delinquency due to sponsor liquidity constraints, while a $21.3 million CRE developer relationship in downtown Los Angeles remains current and performing, with the property being marketed for sale. Management continues to closely monitor these relationships and believes there is a viable path toward a positive resolution through repayment or credit upgrades over the next few quarters. Deposits

($ in thousands)

As of

% Change 3Q2026
vs.

3Q2026

2Q2026

3Q2025

Amount

%

Amount

%

Amount

%

2Q2026

3Q2025

Noninterest-bearing deposits

$

539,257

22

%

$

552,300

23

%

$

543,972

24

%

(2

)%

(1

)%

Money market deposits and others

429,464

18

426,501

18

402,891

18

1

7

Time deposits

1,461,706

60

1,389,538

59

1,326,554

58

5

10

Total deposits

$

2,430,427

100

%

$

2,368,339

100

%

$

2,273,417

100

%

3

%

7

%

As of September 30, 2026 vs. June 30, 2026

Total deposits increased by $62.1 million or 3%, primarily driven by a $72.2 million increase in time deposits. The growth was primarily attributable to higher retail time deposit balances from existing customer relationships and increased wholesale funding balances. These increases were partially offset by declines in noninterest-bearing deposits.

As of September 30, 2026 vs. September 30, 2025

Total deposits increased by $157.0 million or 7%, primarily driven by a $135.2 million increase in time deposits. The increase reflected continued growth in retail time deposit balances from both new and existing customer relationships, as customers continued to favor higher-yielding deposit products. Deposit growth also benefited from higher balances in wholesale time deposits and money market accounts.

The following table sets forth the maturity of time deposits as of September 30, 2026:

As of September 30, 2026

($ in thousands)

Within
Three
Months

Three to
Six
Months

Six to
Nine
Months

Nine to
Twelve
Months

After
Twelve
Months

Total

Time deposits (greater than $250)

$

341,630

$

280,753

$

101,700

$

92,911

$

1,596

$

818,590

Time deposits ($250 or less)

337,435

118,740

82,771

101,517

2,653

643,116

Total time deposits

$

679,065

$

399,493

$

184,471

$

194,428

$

4,249

$

1,461,706

Weighted average rate

3.95

%

3.89

%

3.96

%

4.12

%

3.46

%

3.96

%

CAPITAL

On October 22, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share. The dividend is payable on or about November 19, 2026, to shareholders of record as of the close of business on November 5, 2026. The principal source of funds from which the Company pays dividends are the dividends received from the Bank. During the third quarter of 2026, no shares were repurchased under the repurchase program approved in August 2025.

OP Bancorp (1)

Open Bank (2)

Applicable
Requirement (2)

Community Bank Leverage Ratio (“CBLR”) (2)

Tier 1 leverage

9.09

10.01

8.00

Risk-Based Capital Ratios (2):

Total capital

13.52

%

13.56

%

N/A

Tier 1 capital

11.18

12.31

N/A

CET1 capital

11.18

12.31

N/A

OP Bancorp (1)

% or Basis Point Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Risk-Based Capital Ratios:

Total capital

13.52

%

13.32

%

12.17

%

20 bps

135 bps

Tier 1 capital

11.18

10.98

10.92

20 bps

26 bps

CET1 capital

11.18

10.98

10.92

20 bps

26 bps

Tier 1 leverage

9.09

9.21

9.01

(12) bps

8 bps

Risk-weighted Assets ($ in thousands)

$

2,278,084

$

2,267,359

$

2,126,986

0

%

7

%

ABOUT OP BANCORP

OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank operates a general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada, serving small- and medium-sized businesses, professionals, and local residents with a particular focus on Korean and other Asian communities. The Bank currently operates twelve full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, Garden Grove and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has one loan production office in Bellevue, Washington. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone: 213.892.9999; Website: www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters set forth herein constitute “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 that are not statements of historical fact are forward-looking, and readers should not construe these statements of assurances of expected or intended results, or of promises that management will take a given course of action or pursue the currently expected strategies and objectives. Forward-looking statements in this report include comments about the Company’s current business plans and expectations regarding future operating results, as well as management’s statements about expected future events and economic developments, plans, strategies and objectives. All such statements reflect the current intentions, beliefs and expectations of the Company’s executive management based on currently available information and current and expected market conditions. Forward-looking statements can sometimes be identified by the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. Readers should not construe these statements as assurances of a given level of performance, or as promises that we will take the actions our management currently expects.

Our forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected or could cause us to change plans or strategies or otherwise to take actions that differ from those we currently expect. The known risks and uncertainties that may have these effects are described in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the period ended June 30, 2026 under the heading “Risk Factors”, and in our other filings with the Securities and Exchange Commission. You should read all forward-looking statements in the context of the foregoing and should not consider them to be reliable predictions of future events or as assurances of a particular level of performance or intended course of action. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise except as required by applicable law.

CONSOLIDATED BALANCE SHEETS (unaudited)

($ in thousands, except share and per share data)

As of

% Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Assets

Cash and due from banks

$

21,915

$

21,812

$

10,931

0

%

100

%

Interest-bearing deposits with other banks

220,984

153,239

155,817

44

42

Cash and cash equivalents

242,899

175,051

166,748

39

46

AFS debt securities, at fair value

187,146

202,506

200,760

(8

)

(7

)

Other investments

18,711

18,824

17,164

(1

)

9

Loans held-for-sale

6,160

21,305

6,480

(71

)

(5

)

CRE

1,199,046

1,190,117

1,092,808

1

10

SBA

302,201

278,554

256,211

8

18

C&I

186,444

221,623

214,419

(16

)

(13

)

Home mortgage

600,017

568,512

587,641

6

2

Consumer and other

121

255

138

(53

)

(12

)

Gross loans

2,287,829

2,259,061

2,151,217

1

6

Allowance for credit losses on loans

(28,836

)

(28,100

)

(27,299

)

3

6

Net loans

2,258,993

2,230,961

2,123,918

1

6

Premises and equipment, net

5,185

5,298

6,995

(2

)

(26

)

Accrued interest receivable

10,338

10,172

10,337

2

0

Servicing assets

10,619

10,280

10,429

3

2

Company owned life insurance

24,159

23,975

23,437

1

3

Deferred tax assets, net

15,046

12,456

12,099

21

24

Other real estate owned ("OREO")

—

—

845

—

(100

)

Operating right-of-use assets

7,733

7,732

9,347

0

(17

)

Other assets

22,446

25,746

25,655

(13

)

(13

)

Total assets

$

2,809,435

$

2,744,306

$

2,614,214

2

%

7

%

Liabilities and Shareholders' Equity

Liabilities:

Noninterest-bearing

$

539,257

$

552,300

$

543,972

(2

)%

(1

)%

Money market and others

429,464

426,501

402,891

1

7

Time deposits greater than $250

818,590

746,386

667,883

10

23

Other time deposits

643,116

643,152

658,671

0

(2

)

Total deposits

2,430,427

2,368,339

2,273,417

3

7

FHLB advances

75,000

75,000

75,000

—

—

Subordinated note

24,650

24,629

—

0

NM

Accrued interest payable

16,524

15,949

15,968

4

3

Operating lease liabilities

9,752

9,865

11,826

(1

)

(18

)

Other liabilities

13,135

11,881

16,504

11

(20

)

Total liabilities

2,569,488

2,505,663

2,392,715

3

7

Shareholders' equity:

Common stock

73,018

73,018

72,984

—

0

Additional paid-in capital

12,254

12,128

11,658

1

5

Retained earnings

170,296

164,624

148,031

3

15

Accumulated other comprehensive loss, net of tax

(15,621

)

(11,127

)

(11,174

)

40

40

Total shareholders’ equity

239,947

238,643

221,499

1

8

Total liabilities and shareholders' equity

$

2,809,435

$

2,744,306

$

2,614,214

2

%

7

%

Shares of common stock outstanding, at period-end

14,932,615

14,926,750

14,885,614

0

%

0

%

Book value per share

$

16.07

$

15.99

$

14.88

1

%

8

%

Shareholders' equity to asset ratio

8.54

%

8.70

%

8.47

%

(2

)%

1

%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)

For the Three Months Ended

Change 3Q2026 vs.

3Q2026

2Q2026

3Q2025

2Q2026

3Q2025

Interest income

Interest and fees on loans

$

37,627

$

35,731

$

35,001

5

%

8

%

Interest on AFS debt securities

1,775

1,824

1,699

(3

)

4

Other interest income

1,975

638

1,822

210

8

Total interest income

41,377

38,193

38,522

8

7

Interest expense

Interest on deposits

17,905

16,891

17,442

6

3

Interest on borrowings

775

744

734

4

6

Interest on subordinated note

490

490

—

—

NM

Total interest expense

19,170

18,125

18,176

6

5

Net interest income

22,207

20,068

20,346

11

9

Provision for (reversal of) credit losses

1,597

(149

)

1,175

NM

36

Net interest income after provision for credit losses

20,610

20,217

19,171

2

8

Noninterest income

Service charges on deposits

468

515

725

(9

)

(35

)

Loan servicing fees, net of amortization

980

974

724

1

35

Gains on sale of loans

3,277

3,370

2,037

(3

)

61

Other income

570

792

644

(28

)

(11

)

Total noninterest income

5,295

5,651

4,130

(6

)

28

Noninterest expense

Salaries and employee benefits

9,452

9,733

8,892

(3

)

6

Occupancy and equipment

1,827

1,901

1,676

(4

)

9

Data processing and communication

513

380

263

35

95

Professional fees

1,129

454

419

149

169

FDIC insurance and regulatory assessments

385

387

428

(1

)

(10

)

Promotion and advertising

224

104

126

115

78

Directors’ fees

155

164

151

(5

)

3

Foundation donation and other contributions

750

811

671

(8

)

12

Other expenses

1,077

892

1,003

21

7

Total noninterest expense

15,512

14,826

13,629

5

14

Income before income tax expense

10,393

11,042

9,672

(6

)

7

Income tax expense

2,630

3,064

2,969

(14

)

(11

)

Net income

$

7,763

$

7,978

$

6,703

(3

)%

16

%

EPS - basic

$

0.52

$

0.54

$

0.45

$

(0.02

)

$

0.07

EPS - diluted

0.52

0.53

0.45

(0.01

)

0.07

Weighted average shares:

- Basic

14,932,615

14,903,398

14,885,614

0

%

0

%

- Diluted

14,956,018

14,942,130

14,919,474

0

0

ROAA (1)

1.11

%

1.18

%

1.04

%

(7) bps

7 bps

ROAE (1)

12.94

13.61

12.36

(67) bps

58 bps

Efficiency ratio (2)

56.40

57.64

55.68

(124) bps

72 bps

  NM — Not Meaningful (1)

Annualized. (2)

Represents noninterest expense divided by the sum of net interest income and noninterest income. CONSOLIDATED STATEMENTS OF INCOME (unaudited)

($ in thousands, except share and per share data)

For the Nine Months Ended

3Q2026

3Q2025

Change

Interest income

Interest and fees on loans

$

108,237

$

100,953

7

%

Interest on AFS debt securities

5,360

4,632

16

Other interest income

4,510

5,461

(17

)

Total interest income

118,107

111,046

6

Interest expense

Interest on deposits

51,641

51,525

0

Interest on borrowings

2,198

2,036

8

Interest on subordinated note

1,470

—

NM

Total interest expense

55,309

53,561

3

Net interest income

62,798

57,485

9

Provision for credit losses

1,860

3,117

(40

)

Net interest income after provision for credit losses

60,938

54,368

12

Noninterest income

Service charges on deposits

1,446

2,742

(47

)%

Loan servicing fees, net of amortization

2,676

2,631

2

Gains on sale of loans

8,697

5,497

58

Other income

2,159

2,044

6

Total noninterest income

14,978

12,914

16

Noninterest expense

Salaries and employee benefits

28,461

26,743

6

Occupancy and equipment

5,539

4,841

14

Data processing and communication

1,304

865

51

Professional fees

1,982

1,244

59

FDIC insurance and regulatory assessments

1,190

1,421

(16

)

Promotion and advertising

448

514

(13

)

Directors’ fees

463

529

(12

)

Foundation donation and other contributions

2,286

1,863

23

Other expenses

2,898

3,460

(16

)

Total noninterest expense

44,571

41,480

7

Income before income tax expense

31,345

25,802

21

Income tax expense

8,370

7,206

16

Net income

$

22,975

$

18,596

24

%

EPS - basic

$

1.54

$

1.25

$

0.29

EPS - diluted

1.54

1.25

0.29

Weighted average shares:

- Basic

14,909,133

14,867,626

0

%

- Diluted

14,941,352

14,894,309

0

%

ROAA (1)

1.13

%

0.99

%

14 bps

ROAE (1)

13.03

11.70

133 bps

Efficiency ratio (2)

57.31

58.92

(161) bps

NM — Not Meaningful (1)

Annualized. (2)

Represents noninterest expense divided by the sum of net interest income and noninterest income. ASSET QUALITY BY LOAN TYPE

($ in thousands)

3Q2026

2Q2026

3Q2025

Accruing delinquent loans 30-89 days past due by loan type:

CRE

$

6,150

$

723

$

—

SBA

—

3,173

1,390

C&I

—

26

617

Home mortgage

—

3,152

852

Total 30-59 days

6,150

7,074

2,859

CRE

1,521

—

—

SBA

1,574

972

378

C&I

—

77

—

Home mortgage

2,956

2,363

2,149

Total 60-89 days

6,051

3,412

2,527

CRE

7,671

723

—

SBA

1,574

4,145

1,768

C&I

—

103

617

Home mortgage

2,956

5,515

3,001

Total accruing delinquent loans 30-89 days past due

$

12,201

$

10,486

$

5,386

Nonaccrual loans (1) by loan type:

CRE

$

4,380

$

3,747

$

2,365

SBA

11,945

11,200

8,538

C&I

12

—

—

Home mortgage

1,695

1,425

1,409

Total nonaccrual

$

18,032

$

16,372

$

12,312

Criticized loans (2) by loan type:

CRE

$

41,950

$

7,217

$

9,345

SBA

22,886

21,859

14,925

C&I

9,497

1,390

864

Home mortgage

3,223

2,962

2,941

Total criticized

$

77,556

$

33,428

$

28,075

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS

For the Three Months Ended

3Q2026

2Q2026

3Q2025

($ in thousands)

Average

Balance

Interest Income/Expense

Average Yield/Rate(1)

Average

Balance

Interest Income/Expense

Average Yield/Rate(1)

Average

Balance

Interest Income/Expense

Average Yield/Rate(1)

Interest-earning assets:

Interest-bearing deposits with other banks

$

153,856

$

1,469

3.74

%

$

128,022

$

416

1.29

%

(2)

$

134,263

$

1,502

4.38

%

Other investments

18,803

506

10.76

18,531

222

4.79

17,112

320

7.48

AFS debt securities, at fair value

197,843

1,775

3.59

206,877

1,824

3.53

199,766

1,699

3.40

CRE

1,203,069

19,385

6.39

1,171,097

18,691

6.40

1,065,460

16,689

6.21

SBA

327,567

6,568

7.95

314,060

6,077

7.76

286,556

6,841

9.47

C&I

218,623

3,758

6.82

206,978

3,517

6.82

188,146

3,537

7.46

Home mortgage

584,220

7,903

5.41

560,842

7,437

5.30

591,939

7,931

5.36

Consumer and other

646

13

7.82

293

9

11.76

129

3

9.86

Loans (2)

2,334,125

37,627

6.41

2,253,270

35,731

6.36

2,132,230

35,001

6.52

Total interest-earning assets

2,704,627

41,377

6.08

2,606,700

38,193

5.87

2,483,371

38,522

6.16

Noninterest-earning assets

87,991

87,072

83,238

Total assets

$

2,792,618

$

2,693,772

$

2,566,609

Interest-bearing liabilities:

Money market deposits and others

$

453,649

$

3,713

3.25

%

$

404,975

$

3,174

3.14

%

$

425,248

$

3,793

3.54

%

Time deposits

1,420,357

14,192

3.96

1,392,628

13,717

3.95

1,275,417

13,649

4.25

Total interest-bearing deposits

1,874,006

17,905

3.79

1,797,603

16,891

3.77

1,700,665

17,442

4.07

Borrowings

81,359

775

3.78

81,816

744

3.65

76,250

734

3.82

Subordinated note

24,643

490

7.95

24,622

490

7.96

—

—

—

Total interest-bearing liabilities

1,980,008

19,170

3.84

1,904,041

18,125

3.82

1,776,915

18,176

4.06

Noninterest-bearing liabilities:

Noninterest-bearing deposits

534,053

518,218

528,926

Other noninterest-bearing liabilities

38,545

36,969

43,890

Total noninterest-bearing liabilities

572,598

555,187

572,816

Shareholders’ equity

240,012

234,544

216,878

Total liabilities and shareholders’ equity

$

2,792,618

$

2,693,772

$

2,566,609

Net interest income / interest rate spreads

$

22,207

2.24

%

$

20,068

2.05

%

$

20,346

2.10

%

Net interest margin

3.27

%

3.08

%

3.26

%

Cost of deposits & cost of funds:

Total deposits / cost of deposits

$

2,408,059

$

17,905

2.95

%

$

2,315,821

$

16,891

2.93

%

$

2,229,591

$

17,442

3.10

%

Total funding liabilities / cost of funds

2,514,061

19,170

3.03

2,422,259

18,125

3.00

2,305,841

18,176

3.13

For the Nine Months Ended

3Q2026

3Q2025

($ in thousands)

Average

Balance

Interest
Income/
Expense

Average
Yield/Rate (1)

Average

Balance

Interest
Income/
Expense

Average
Yield/Rate (1)

Interest-earning assets:

Interest-bearing deposits with other banks

$

142,329

$

3,212

2.98

%

(2)

$

135,439

$

4,522

4.40

%

Other investments

18,194

1,298

9.51

16,851

939

7.43

AFS debt securities, at fair value

203,296

5,360

3.52

188,258

4,632

3.28

CRE

1,176,405

55,890

6.35

1,031,854

47,681

6.18

SBA

311,610

18,624

7.99

278,621

19,666

9.44

C&I

212,765

10,828

6.80

198,512

10,982

7.40

Home mortgage

570,146

22,848

5.34

568,811

22,612

5.30

Consumer & other

849

47

7.36

146

12

10.85

Loans (3)

2,271,775

108,237

6.37

2,077,944

100,953

6.49

Total interest-earning assets

2,635,594

118,107

5.99

2,418,492

111,046

6.13

Noninterest-earning assets

84,005

81,505

Total assets

$

2,719,599

$

2,499,997

Interest-bearing liabilities:

Money market deposits and others

$

417,510

$

9,897

3.17

%

$

396,168

$

10,463

3.53

%

Time deposits

1,401,268

41,744

3.98

1,250,518

41,062

4.39

Total interest-bearing deposits

1,818,778

51,641

3.80

1,646,686

51,525

4.18

Borrowings

79,690

2,198

3.69

67,290

2,036

4.05

Subordinated note

24,622

1,470

7.96

—

—

—

Total interest-bearing liabilities

1,923,090

55,309

3.85

1,713,976

53,561

4.18

Noninterest-bearing liabilities:

Noninterest-bearing deposits

523,061

532,867

Other noninterest-bearing liabilities

38,419

41,198

Total noninterest-bearing liabilities

561,480

574,065

Shareholders’ equity

235,029

211,956

Total liabilities and shareholders’ equity

$

2,719,599

$

2,499,997

Net interest income / interest rate spreads

$

62,798

2.14

%

$

57,485

1.95

%

Net interest margin

3.18

%

3.17

%

Cost of deposits & cost of funds:

Total deposits / cost of deposits

$

2,341,839

$

51,641

2.95

%

$

2,179,553

$

51,525

3.16

%

Total funding liabilities / cost of funds

2,446,151

55,309

3.02

2,246,843

53,561

3.19

  (1)

Annualized. (2)

Interest income includes a one-time $739 thousand adjustment recorded during the second quarter of 2026 related to the correction of prior-period interest accruals on the Federal Reserve Bank account. (3)

Includes loans held-for-sale. More News From OP Bancorp

EFFINGHAM, Ill., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $20.6 million, or $0.95 per diluted share, for the third quarter of 2026, compared to net income available to common shareholders of $17.7 million, or $0.82 per diluted share, for the second quarter of 2026. This also compares to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025.

2026 Third Quarter Results

Net income available to common shareholders of $20.6 million, or $0.95 per diluted shareReturn on average assets of 1.35% and return on average tangible common equity of 18.50%Net interest margin of 4.03% compared to 3.98% in the prior quarter; current quarter included a $1.6 million interest recovery on the payoff of a nonaccrual loanTotal loans increased $39.1 million, including $23.7 million of net growth in the Community Bank loan portfolio, or 2.8% annualized, during the quarterTotal capital to risk-weighted assets of 15.60% and common equity tier 1 capital of 10.36%Ratio of nonperforming assets to total assets of 0.86%, a decrease of five basis points compared to prior quarter Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

“Our third quarter results reflect another solid quarter of execution and continued progress toward building a higher-performing community bank. We delivered diluted earnings per share of $0.95 and a 1.35% return on average assets while maintaining strong net interest margin. The Community Bank generated loan growth, while we continued the planned runoff of non-core portfolios, further improving the composition of our balance sheet.

"We also made meaningful progress resolving legacy credit issues. Past-due, substandard and nonperforming loans declined, net charge-offs moderated from the prior quarter, and our nonperforming asset ratio improved to 0.86%. We remain disciplined in addressing the remaining legacy credits while supporting high-quality loan growth in our markets.

"Strong earnings continued to support our capital position. We enter the fourth quarter with solid momentum and remain focused on profitable relationship growth, continued credit normalization and disciplined capital deployment to support long-term shareholder value.”

Financial Highlights and Key Performance Indicators

  As of and for the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands, except per share data)  2026   2026   2026   2025   2025 Diluted earnings (loss) per common share $0.95  $0.82  $0.74  $(0.24) $0.24 Return on average assets (annualized)  1.35%  1.22%  1.16%  (0.17)%  0.43%Return on average tangible common equity (annualized) (1)  18.50%  16.27%  14.88%  (4.46)%  4.72%Adjusted pre-provision net revenue to average assets (annualized) (1)  1.96%  2.01%  1.91%  1.86%  1.81%Net interest margin (annualized)  4.03%  3.98%  3.91%  3.74%  3.79%Efficiency ratio (1)  61.34%  60.61%  62.17%  63.01%  61.01%Noninterest expense to average assets  3.13%  3.12%  3.16%  4.54%  2.86%Net charge-offs to average loans (annualized)  0.50%  1.17%  0.64%  3.69%  0.99%Tangible book value per share at period end (1) $19.52  $21.41  $20.77  $20.70  $21.16 Tangible book value per share, excluding AOCI at period end (1) $25.39  $24.69  $24.11  $23.55  $24.08 Common shares outstanding at period end  20,801,859   20,725,814   20,813,975   21,169,854   21,543,557 Trust assets under administration $4,770,581  $4,782,625  $4,474,234  $4,478,999  $4,363,756                       (1) Non-GAAP financial measures. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial measures.

Key Points for Third Quarter and Outlook

Growth Trends in Community Bank & Wealth Management

Total loans at September 30, 2026 were $4.28 billion, an increase of $39.1 million from June 30, 2026. Key changes in the loan portfolio were as follows:Community Bank balances increased $23.7 million, or 2.8% annualized. Specialty finance loans increased $28.0 million to $560.1 million from June 30, 2026.Non-core loans, which include our third-party lending and servicing programs and remaining equipment finance portfolio, decreased $12.7 million to $295.7 million from June 30, 2026. Total deposits were $5.62 billion at September 30, 2026, a decrease of $89.8 million from June 30, 2026. Key changes in deposits were as follows:Retail deposits decreased $112.7 million, primarily reflecting $115.7 million of balance reductions resulting from actions taken to manage liquidity and deposit pricing. Commercial and public funds deposits increased $35.7 million and $33.7 million, respectively.Servicing and higher-cost brokered deposits decreased $26.5 million and $7.9 million, respectively. Wealth Management revenue totaled $8.7 million in the third quarter of 2026. Assets under administration remained stable at $4.77 billion at September 30, 2026, compared to $4.78 billion at June 30, 2026.
Net Interest Margin

Net interest margin increased five basis points to 4.03% in the third quarter of 2026, benefiting from a $1.6 million interest recovery on the payoff of a nonaccrual loan and continued balance sheet and interest rate risk management, partially offset by higher funding costs. The cost of deposits increased four basis points to 1.82%.
The following table presents the Company’s net interest margin for the third quarter of 2026 compared to the second quarter of 2026 and the third quarter of 2025.

  For the Three Months Ended(dollars in thousands) September 30, 2026 June 30, 2026 September 30, 2025Interest-earning assets Average
Balance Interest &
Fees Yield/
Rate Average
Balance Interest &
Fees Yield/
Rate Average
Balance Interest &
Fees Yield/
RateCash and cash equivalents $149,088 $1,333 3.55% $108,157 $987 3.66% $78,567 $849 4.29%Investment securities (1)  1,780,505  22,090 4.92   1,617,474  19,540 4.85   1,338,997  15,979 4.73 Loans (1)(2)  4,235,207  69,173 6.48   4,268,168  67,195 6.31   4,947,675  81,012 6.50 Loans held for sale  6,054  97 6.36   8,431  128 6.10   9,268  147 6.29 Nonmarketable equity securities  29,215  530 7.20   30,285  534 7.07   38,559  715 7.36 Total interest-earning assets  6,200,069  93,223 5.97   6,032,515  88,384 5.88   6,413,066  98,702 6.11 Noninterest-earning assets  495,446      495,663      498,875    Total assets $6,695,515     $6,528,178     $6,911,941                       Interest-Bearing Liabilities                  Interest-bearing deposits $4,720,701 $26,251 2.21% $4,512,697 $24,526 2.18% $4,644,455 $30,219 2.58%Short-term borrowings  42,059  349 3.29   28,521  202 2.84   54,839  499 3.61 FHLB advances & other borrowings  221,217  2,165 3.88   249,044  2,349 3.78   386,772  4,044 4.15 Subordinated debt  27,032  380 5.58   27,027  380 5.64   77,210  1,393 7.16 Trust preferred debentures  52,316  1,154 8.75   52,128  1,131 8.70   51,602  1,221 9.39 Total interest-bearing liabilities  5,063,325  30,299 2.37   4,869,417  28,588 2.35   5,214,878  37,376 2.84 Noninterest-bearing deposits  989,768      1,012,592      1,020,196    Other noninterest-bearing liabilities  75,440      84,416      100,436    Shareholders’ equity  566,982      561,753      576,431    Total liabilities and shareholders’ equity $6,695,515     $6,528,178     $6,911,941                       Net Interest Margin   $62,924 4.03%   $59,796 3.98%   $61,326 3.79%                   Cost of Deposits     1.82%     1.78%     2.12%                       (1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. 
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Trends in Noninterest Income and Expense

Noninterest income was $23.2 million for the third quarter of 2026 compared to $23.8 million for the second quarter of 2026.Noninterest expense was $52.8 million for the third quarter of 2026 compared to $50.8 million for the second quarter of 2026, driven by an increase in variable compensation expense.Income tax expense was $6.6 million, resulting in an effective tax rate of 22.4% for the third quarter of 2026 compared to 22.9% and 33.2% for the second quarter of 2026 and third quarter of 2025, respectively. We currently expect our effective tax rate to be approximately 23% for the full year, subject to changes in earnings mix, state tax legislation, and other factors.
Continued Progress on Credit Quality

Loans 30-89 days past due decreased to $9.1 million, or 0.21% of total loans, at September 30, 2026, compared to $11.0 million, or 0.26% of total loans, at June 30, 2026. Substandard accruing loans decreased by $0.4 million to $71.2 million at September 30, 2026.Nonperforming loans decreased to $58.7 million, or 1.37% of total loans, at September 30, 2026, compared to $60.9 million, or 1.43% of total loans, at June 30, 2026.Net charge-offs were $5.4 million for the third quarter of 2026, including $3.2 million of charge-offs on two previously identified nonperforming commercial real estate relationships in the Community Bank portfolio, partially offset by a $0.8 million recovery on the payoff of another previously identified nonperforming commercial real estate relationship.Provision for credit losses on loans was $3.7 million for the third quarter of 2026, reflecting improved credit quality metrics, including favorable past due and delinquency trends.Allowance for credit losses on loans was $60.9 million, or 1.42% of total loans, at September 30, 2026, compared to an allowance of $62.5 million, or 1.47% of total loans, at June 30, 2026.
The table below summarizes certain information regarding the Company’s loan portfolio asset quality for the periods presented.

  As of and for the Three Months Ended(dollars in thousands)
 September 30, June 30, March 31, December 31, September 30,  2026   2026   2026   2025   2025 Asset Quality          Loans 30-89 days past due $9,103  $10,984  $20,266  $17,079  $26,019 Nonperforming loans  58,690   60,879   58,791   65,483   68,703 Nonperforming assets  58,870   61,235   59,305   66,089   70,369 Substandard accruing loans  71,168   71,526   91,963   76,000   78,901 Net charge-offs  5,352   12,465   6,747   43,492   12,309 Loans 30-89 days past due to total loans  0.21%  0.26%  0.47%  0.39%  0.53%Nonperforming loans to total loans  1.37%  1.43%  1.36%  1.50%  1.41%Nonperforming assets to total assets  0.86%  0.91%  0.91%  1.01%  1.02%Allowance for credit losses to total loans  1.42%  1.47%  1.56%  1.59%  2.07%Allowance for credit losses to nonperforming loans  103.68%  102.69%  115.45%  105.71%  146.84%Net charge-offs to average loans (annualized)  0.50%  1.17%  0.64%  3.69%  0.99%                      Capital

As previously announced, the Company’s board of directors authorized a share repurchase program, pursuant to which the Company is authorized to repurchase up to $45.0 million of its common stock through December 31, 2026. The Company repurchased $10.6 million of its common stock during year-to-date 2026, and approximately $24.8 million remained available under the program at September 30, 2026.

The Company and Midland States Bank exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:

 As of September 30, 2026 Midland States Bank Midland States
Bancorp, Inc. Minimum Regulatory
Requirements (2)Total capital to risk-weighted assets14.52% 15.60% 10.50%Tier 1 capital to risk-weighted assets13.27% 13.82% 8.50%Common equity Tier 1 capital to risk-weighted assets13.27% 10.36% 7.00%Tier 1 leverage ratio9.93% 10.34% 4.00%Tangible common equity to tangible assets (1)N/A  5.97% N/A   As of June 30, 2026 Midland States Bank Midland States
Bancorp, Inc. Minimum Regulatory
Requirements (2)Total capital to risk-weighted assets14.84% 15.77% 10.50%Tier 1 capital to risk-weighted assets13.59% 13.97% 8.50%Common equity Tier 1 capital to risk-weighted assets13.59% 10.39% 7.00%Tier 1 leverage ratio10.08% 10.37% 4.00%Tangible common equity to tangible assets (1)N/A  6.64% N/A           (1) Non-GAAP financial measure. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.

About Midland States Bancorp, Inc.

Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of September 30, 2026, the Company had total assets of approximately $6.82 billion, and its Wealth Management Group had assets under administration of approximately $4.77 billion. The Company provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures calculated in accordance with GAAP.

These non-GAAP financial measures include “Adjusted pre-provision net revenue,” “Adjusted pre-provision net revenue to average assets,” “Adjusted earnings,” “Adjusted earnings available to common shareholders,” “Adjusted diluted earnings per common share,” “Return on average tangible common equity,” “Efficiency ratio,” “Tangible common equity to tangible assets,” “Tangible book value per share,” and “Tangible book value per share, excluding AOCI.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s profitability and asset profile, and that the tangible asset-based measures are commonly used by investors in evaluating value of financial institutions and their equity securities. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the financial markets; the effects of armed conflict, including the scope and duration of disruptions in global energy markets relating to war in the Middle East; changes in the business environment resulting from the adoption of artificial intelligence, including fraud and cybersecurity risk; operational risks, including with respect to fraud and information technology; changes in business plans as circumstances warrant; changes to U.S. and state tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, which are incorporated herein by reference. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," “should,” "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," “outlook,” “trends,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at [email protected] or (217) 342-7321
Claire A. Stack, Chief Financial Officer, at [email protected] or (217) 342-7321

 MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited)             As of  September 30, June 30, March 31, December 31, September 30,(dollars in thousands)  2026   2026   2026   2025   2025 Assets          Cash and cash equivalents $99,612  $298,747  $113,658  $127,811  $166,147 Investment securities  1,909,021   1,657,313   1,596,220   1,527,236   1,383,121 Loans  4,282,828   4,243,704   4,338,573   4,352,004   4,867,587 Allowance for credit losses on loans  (60,852)  (62,519)  (67,875)  (69,219)  (100,886)Total loans, net  4,221,976   4,181,185   4,270,698   4,282,785   4,766,701 Loans held for sale  4,580   8,944   6,709   7,781   7,535 Premises and equipment, net  82,435   82,898   84,169   85,134   86,005 Other real estate owned  180   356   514   606   393 Loan servicing rights, at lower of cost or fair value  10,931   11,316   11,688   11,932   16,165 Goodwill  7,927   7,927   7,927   7,927   7,927 Other intangible assets, net  6,849   7,495   8,159   8,876   9,619 Company-owned life insurance  224,884   222,757   220,630   218,554   216,494 Credit enhancement asset  14,364   13,642   13,476   12,557   5,765 Other assets  234,083   208,036   214,115   222,221   245,643 Total assets $6,816,842  $6,700,616  $6,547,963  $6,513,420  $6,911,515            Liabilities and Shareholders' Equity          Noninterest-bearing demand deposits $973,388  $1,010,128  $1,013,808  $1,040,411  $1,015,930 Interest-bearing deposits  4,644,050   4,697,150   4,426,259   4,383,968   4,588,895 Total deposits  5,617,438   5,707,278   5,440,067   5,424,379   5,604,825 Short-term borrowings  151,499   7,645   153,425   60,181   146,766 FHLB advances  353,000   258,000   238,000   293,000   373,000 Subordinated debt  27,035   27,030   27,024   27,019   27,014 Trust preferred debentures  52,409   52,219   52,035   51,857   51,684 Other liabilities  84,094   78,756   78,458   91,485   124,225 Total liabilities  6,285,475   6,130,928   5,989,009   5,947,921   6,327,514 Total shareholders’ equity  531,367   569,688   558,954   565,499   584,001 Total liabilities and shareholders’ equity $6,816,842  $6,700,616  $6,547,963  $6,513,420  $6,911,515                       MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)             For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands, except per share data)  2026  2026   2026   2025   2025 Net interest income:          Interest income $93,021 $88,177  $86,022  $92,095  $98,493 Interest expense  30,299  28,588   28,605   33,393   37,376 Net interest income  62,722  59,589   57,417   58,702   61,117 Provision for credit losses:          Provision for credit losses on loans  3,685  7,109   5,403   11,825   20,505 Provision (recapture) of credit losses on unfunded commitments  50  (290)  (400)  (200)  (500)Total provision for credit losses  3,735  6,819   5,003   11,625   20,005 Net interest income after provision for credit losses  58,987  52,770   52,414   47,077   41,112 Noninterest income:          Wealth management revenue  8,651  8,768   8,248   8,272   8,018 Service charges on deposit accounts  3,775  3,449   3,355   3,573   3,598 Interchange revenue  3,984  3,553   3,528   3,437   3,445 Residential mortgage banking revenue  216  686   626   690   735 Income on company-owned life insurance  1,828  2,127   2,076   2,060   2,102 Gain (loss) on sales of investment securities, net  —  —   (1,731)  —   14 Credit enhancement income (loss)  3,108  3,081   3,360   6,876   (242)Other income  1,675  2,104   2,660   1,959   2,346 Total noninterest income  23,237  23,768   22,122   26,867   20,016 Noninterest expense:          Salaries and employee benefits  28,500  27,354   26,157   25,906   26,393 Occupancy and equipment  4,330  4,229   4,535   4,353   4,206 Data processing  6,871  6,994   7,065   6,834   7,186 Professional services  1,669  1,665   2,242   2,321   2,017 Amortization of intangible assets  646  664   717   743   743 Loss on sale of loan portfolios  —  —   —   23,051   — Impairment on leased assets and surrendered assets  —  —   —   684   — FDIC insurance  791  781   529   3,739   1,512 Other expense  10,036  9,068   9,179   9,561   7,757 Total noninterest expense  52,843  50,755   50,424   77,192   49,814 Income (loss) before income taxes  29,381  25,783   24,112   (3,248)  11,314 Income tax expense (benefit)  6,573  5,895   5,649   (360)  3,757 Net income (loss)  22,808  19,888   18,463   (2,888)  7,557 Preferred stock dividends  2,229  2,228   2,228   2,228   2,229 Net income (loss) available to common shareholders $20,579 $17,660  $16,235  $(5,116) $5,328            Basic earnings (loss) per common share $0.95 $0.82  $0.74  $(0.24) $0.24 Diluted earnings (loss) per common share $0.95 $0.82  $0.74  $(0.24) $0.24 Weighted average common shares outstanding  21,128,351  21,074,683   21,301,246   21,854,033   21,863,911 Weighted average diluted common shares outstanding  21,140,143  21,074,683   21,301,246   21,854,033   21,863,911                      MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)             As of  September 30, June 30, March 31, December 31, September 30,(dollars in thousands) 2026
 2026
 2026
 2025
 2025
Loan Portfolio Mix          Commercial loans $1,183,813 $1,185,730 $1,216,511 $1,178,521 $1,476,533Equipment finance leases  30,339  37,086  43,803  50,981  310,983Total commercial loans and leases  1,214,152  1,222,816  1,260,314  1,229,502  1,787,516Commercial real estate  2,332,478  2,296,978  2,322,198  2,342,664  2,336,661Construction and land development  249,268  243,840  276,469  286,140  260,073Residential real estate  358,021  347,664  344,511  349,623  353,475Consumer  128,909  132,406  135,081  144,075  129,862Total loans $4,282,828 $4,243,704 $4,338,573 $4,352,004 $4,867,587           Loan Portfolio Segment          Regions          Eastern $985,101 $978,944 $989,596 $972,031 $927,977Northern  782,911  771,844  758,815  711,702  724,695Southern  664,770  700,937  713,592  729,368  725,892St. Louis  994,197  951,505  934,974  915,126  896,005Total Community Bank  3,426,979  3,403,230  3,396,977  3,328,227  3,274,569Specialty finance  560,102  532,070  613,514  668,183  642,167Non-core loan program and other (1)  295,747  308,404  328,082  355,594  950,851Total loans $4,282,828 $4,243,704 $4,338,573 $4,352,004 $4,867,587           Deposit Portfolio Mix          Noninterest-bearing demand $973,388 $1,010,128 $1,013,808 $1,040,411 $1,015,930Interest-bearing:          Checking  2,155,193  2,094,880  1,886,212  1,855,215  1,996,501Money market  1,306,610  1,242,303  1,295,781  1,248,942  1,240,885Savings  498,397  640,292  495,899  487,742  486,953Time  666,749  694,642  723,055  748,942  804,740Brokered time  17,101  25,033  25,312  43,127  59,816Total deposits $5,617,438 $5,707,278 $5,440,067 $5,424,379 $5,604,825           Deposit Portfolio by Channel          Retail $2,890,419 $3,003,073 $2,904,695 $2,823,064 $2,791,085Commercial  1,361,246  1,325,592  1,209,210  1,193,637  1,248,445Public Funds  609,873  576,188  455,982  473,381  605,474Wealth & Trust  249,209  243,549  242,977  265,747  263,765Servicing  475,862  502,335  478,496  498,496  498,892Brokered Deposits  17,106  25,033  125,949  143,192  167,228Other  13,723  31,508  22,758  26,862  29,936Total deposits $5,617,438 $5,707,278 $5,440,067 $5,424,379 $5,604,825                 (1)   Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio, and equipment financing loans and leases.

  MIDLAND STATES BANCORP, INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)           Adjusted Earnings Reconciliation             For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands, except per share data)  2026   2026   2026   2025   2025 Income (loss) before income tax expense (benefit) - GAAP $29,381  $25,783  $24,112  $(3,248) $11,314 Adjustments to noninterest income:          (Gain) loss on sales of investment securities, net  —   —   1,731   —   (14)Gain on sale of mortgage servicing rights  —   —   (2,077)  —   — (Gain) loss on limited partnership investments  (18)  176   1,689   134   315 Total adjustments to noninterest income  (18)  176   1,343   134   301 Adjustments to noninterest expense:          Loss on sale of loan portfolios  —   —   —   (23,051)  — Total adjustments to noninterest expense  —   —   —   (23,051)  — Adjusted earnings pre-tax - non-GAAP  29,363   25,959   25,455   19,937   11,615 Adjusted earnings tax expense  6,579   5,941   6,002   5,726   3,836 Adjusted earnings - non-GAAP  22,784   20,018   19,453   14,211   7,779 Preferred stock dividends  2,229   2,228   2,228   2,228   2,229 Adjusted earnings available to common shareholders $20,555  $17,790  $17,225  $11,983  $5,550 Adjusted diluted earnings per common share $0.95  $0.82  $0.79  $0.54  $0.25            Adjusted Pre-Provision Net Revenue Reconciliation             For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands)  2026   2026   2026   2025   2025 Adjusted earnings pre-tax - non-GAAP $29,363  $25,959  $25,455  $19,937  $11,615 Provision for credit losses  3,735   6,819   5,003   11,625   20,005 Adjusted pre-provision net revenue $33,098  $32,778  $30,458  $31,562  $31,620 Adjusted pre-provision net revenue to average assets (annualized)  1.96%  2.01%  1.91%  1.86%  1.81%            Return on Average Tangible Common Equity             For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands)  2026   2026   2026   2025   2025 Net income available to common shareholders $20,579  $17,660  $16,235  $(5,116) $5,328            Average total shareholders' equity—GAAP $566,982  $561,753  $569,482  $582,698  $576,431 Adjustments:          Preferred stock  (110,548)  (110,548)  (110,548)  (110,548)  (110,548)Goodwill  (7,927)  (7,927)  (7,927)  (7,927)  (7,927)Other intangible assets, net  (7,159)  (7,813)  (8,487)  (9,320)  (9,978)Average tangible common equity $441,348  $435,465  $442,520  $454,903  $447,978            Return on average tangible common equity (annualized)  18.50%  16.27%  14.88% (4.46)        %  4.72%                    MIDLAND STATES BANCORP, INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)(continued)           Efficiency Ratio Reconciliation             For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,(dollars in thousands)  2026   2026   2026   2025   2025 Noninterest expense - GAAP $52,843  $50,755  $50,424  $77,192  $49,814 Loss on sale of loan portfolios  —   —   —   (23,051)  — Adjusted noninterest expense $52,843  $50,755  $50,424  $54,141  $49,814            Net interest income - GAAP $62,722  $59,589  $57,417  $58,702  $61,117 Effect of tax-exempt income  202   207   218   221   209 Adjusted net interest income  62,924   59,796   57,635   58,923   61,326            Noninterest income - GAAP  23,237   23,768   22,122   26,867   20,016 (Gain) loss on sales of investment securities, net  —   —   1,731   —   (14)Gain on sale of mortgage servicing rights  —   —   (2,077)  —   — (Gain) loss on limited partnership investments  (18)  176   1,689   134   315 Adjusted noninterest income  23,219   23,944   23,465   27,001   20,317            Adjusted total revenue $86,143  $83,740  $81,100  $85,924  $81,643            Efficiency ratio  61.34%  60.61%  62.17%  63.01%  61.01%                      Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share             As of  September 30, June 30, March 31, December 31, September 30,(dollars in thousands, except per share data)  2026   2026   2026   2025   2025 Shareholders' Equity to Tangible Common Equity        Total shareholders' equity—GAAP $531,367  $569,688  $558,954  $565,499  $584,001 Adjustments:          Preferred stock  (110,548)  (110,548)  (110,548)  (110,548)  (110,548)Goodwill  (7,927)  (7,927)  (7,927)  (7,927)  (7,927)Other intangible assets, net  (6,849)  (7,495)  (8,159)  (8,876)  (9,619)Tangible common equity $406,043  $443,718  $432,320  $438,148  $455,907            Less: Accumulated other comprehensive loss (AOCI)  (122,197)  (67,931)  (69,582)  (60,333)  (62,966)Tangible common equity, excluding AOCI $528,240  $511,649  $501,902  $498,481  $518,873            Total Assets to Tangible Assets:          Total assets—GAAP $6,816,842  $6,700,616  $6,547,963  $6,513,420  $6,911,515 Adjustments:          Goodwill  (7,927)  (7,927)  (7,927)  (7,927)  (7,927)Other intangible assets, net  (6,849)  (7,495)  (8,159)  (8,876)  (9,619)Tangible assets $6,802,066  $6,685,194  $6,531,877  $6,496,617  $6,893,969            Common Shares Outstanding  20,801,859   20,725,814   20,813,975   21,169,854   21,543,557            Tangible Common Equity to Tangible Assets  5.97%  6.64%  6.62%  6.74%  6.61%Tangible Book Value Per Share $19.52  $21.41  $20.77  $20.70  $21.16 Tangible Book Value Per Share, excluding AOCI $25.39  $24.69  $24.11  $23.55  $24.08                       A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/b44a02c8-6774-4b9a-85d3-b36bef4cca8a

WEST READING, Pa.--(BUSINESS WIRE)---- $cubi #banking--Customers Bancorp Reports Results for Q3 2026.

Old Second Bancorp NASDAQ: OSBC reported third-quarter 2026 net income of $28.9 million, or $0.56 per diluted share, as a higher net interest margin and improving credit classifications were partly offset by elevated loan charge-offs tied primarily to one commercial relationship.

On an adjusted basis, excluding mortgage servicing rights valuation adjustments, the company earned $28.5 million, or $0.55 per diluted share. Return on assets was 1.69%, while return on average tangible common equity was 15.77%. The company reported a 52.34% efficiency ratio for the quarter.

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“Despite the isolated charge-off, it was a pretty solid quarter for the company,” Chairman, President and Chief Executive Officer Jim Eccher said. He added that the bank’s improving credit metrics and performance across the rest of its operations left management optimistic about the outlook.

Charge-Offs Concentrated in Previously Discussed Credit
Third-quarter results included $12.7 million of net loan charge-offs. Commercial and industrial charge-offs totaled $9.2 million, with $6 million of that amount previously reserved. The bulk of the C&I losses related to a warehousing and distribution borrower whose cash flow deteriorated over the past year.

Eccher said the company believes that credit is “largely behind us,” noting that the borrower is under contract to be sold at a lower price. The remaining $3.1 million of charge-offs came from the company’s powersport portfolio, a level comparable with the preceding quarter.

Management pointed to broad improvement in other credit indicators. Classified loans declined to $57.8 million, nonperforming loans fell to $16.8 million, and criticized loans decreased by $61.3 million, or 38%, during the quarter. Eccher said classified loans as a percentage of total loans had not been this low since before the COVID-19 pandemic.

The allowance for credit losses on loans declined to $64.2 million, or 1.23% of total loans, at Sept. 30, from $70.4 million, or 1.34% of loans, at the end of the second quarter. Chief Operating Officer and Chief Financial Officer Brad Adams said the reserve reduction largely reflected the decline in classified loans, though he does not expect a substantial additional reduction because the company expects to replenish reserves for recurring powersport charge-offs.

Margin Expansion Continues
Net interest income rose to $84 million in the third quarter from $83.3 million in the prior quarter and increased $1.3 million from a year earlier. The tax-equivalent net interest margin expanded 4 basis points sequentially to 5.27%, up 22 basis points from the prior-year quarter.

Loan yields rose 3 basis points during the quarter, while the total yield on earning assets increased 6 basis points to 6.40%. The cost of interest-bearing deposits increased 2 basis points, and total cost of deposits was 1.02%, compared with 1.00% in the second quarter and 1.33% a year earlier.

Average loans increased by $5.5 million, while average deposits fell by $78 million. Adams attributed the deposit decline largely to seasonal factors, remaining runoff in higher-beta deposits, and wholesale deposits obtained through prior acquisitions.

Management said loan originations were stronger than reported balances suggested, but higher prepayments and the deliberate reduction of the syndicated loan portfolio offset production. Loan prepayments through the first nine months of 2026 had already reached the full-year 2025 total, according to Adams.

Old Second expects low-single-digit loan growth in the fourth quarter. Adams said the company could give back roughly 5 basis points of margin as loan growth requires more marginal funding and deposit competition increases, but added that he expects the bank to remain above a 5.20% margin in the near-to-intermediate term.

About 45% of the loan portfolio is expected to reprice over the next three to four quarters, Eccher said, along with roughly 25% of the securities portfolio. Adams said about half of the loan portfolio is variable rate and generally reprices with a 30-day lag.

Loan Pipelines, Specialty Lending and Deposits
Total loans declined by approximately $7.8 million during the quarter, while the loan-to-deposit ratio rose to 98.3% from 96.4% in the prior quarter. Eccher said outsized payoffs and a $53 million reduction in the syndicated loan portfolio constrained reported loan growth.

The company has reduced its syndicated loan balances by more than 60% from the end of 2021, when the portfolio peaked at $550 million. Adams said the company will continue participating in some syndicated credits but no longer views the business as a primary strategic focus.

Management said commercial loan pipelines were broad-based, with activity in small business, middle market, C&I, healthcare, investment commercial real estate, sponsored lending and investment leasing. Eccher said the fourth-quarter pipeline was shaping up as one of the company’s strongest in a long time and could support a strong start to 2027.

In national specialty lending, Head of National Specialty Lending Darin Campbell said application volumes were modestly higher than a year earlier, while underwriting standards had led the company to decline more applications due to higher consumer debt burdens. He said originations remained similar to the prior year and collector car lending was up significantly.

Campbell also said Old Second recently launched a multiyear endorsed agreement with Ducati USA. He said the arrangement had generated positive dealer feedback and initial application flow, with management expecting it to support fourth-quarter originations and provide a more substantial boost in 2027.

Adams said he expects deposits to grow in the fourth quarter and believes most post-acquisition deposit attrition is now behind the company.

Capital Returns and Expense Outlook
Old Second repurchased 1.5 million shares during the third quarter for approximately $39.2 million. Through the first nine months of 2026, the company repurchased 3.4 million shares at an average price of $22.74, representing a $74.7 million reduction in equity.

The repurchases contributed to a modest decline in tangible book value per share to $14.75 from $14.77 in the prior quarter and reduced the tangible equity-to-tangible assets ratio to 11.0% from 11.19%.

Adams said the company expects to remain active in buybacks, citing its capital position and earnings outlook. He said investors could reasonably expect Old Second to repurchase about 5% of its shares annually while retaining the capacity for smaller, “fill-in” acquisitions.

The company increased its common dividend by 14% in the fourth quarter of 2026. Management said it continues to evaluate acquisition opportunities, although Adams characterized the Chicago-area market as active but not more robust than it was a year ago.

Noninterest expense increased $370,000 from the second quarter, driven by compensation, incentive, employee insurance, occupancy and equipment costs. Adams said management expects expense growth of roughly 3% to 4% annually, despite pressure from projected increases in health care costs.

About Old Second Bancorp (NASDAQ:OSBC)Old Second Bancorp, Inc is a bank holding company headquartered in Aurora, Illinois. Through its principal subsidiary, Old Second National Bank, the company provides banking and financial services to individuals, families, businesses and governmental entities.

Its offerings include checking and savings accounts, certificates of deposit, residential and commercial real estate lending, commercial and industrial loans, consumer loans, treasury management and cash-management services. The bank also provides wealth management, trust and investment-related services through its financial services operations.

Founded in 1871, Old Second has a long history of serving communities in northern Illinois, including the Fox Valley and Chicago metropolitan area.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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WHITTIER, Calif., Oct. 22, 2026 (GLOBE NEWSWIRE) -- First Pacific Bancorp (the “Company”) (OTCID: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the third quarter ended September 30, 2026, reflecting continued balance sheet growth, strong asset quality, and a solid capital and liquidity position.

Key Financial Highlights:

Total assets ended the third quarter of 2026 at $532 million, an increase of $42 million since December 31, 2025, and a $46 million increase from September 30, 2025.  Total deposits ended the third quarter of 2026 at $449 million, up $43 million since year end 2025 and a $60 million increase from the third quarter 2025.Total loans ended the third quarter of 2026 at $362 million, up $42 million from both year end 2025 and the third quarter 2025.Asset quality remains excellent with minimal levels of classified or non-performing assets.The Bank ended the third quarter with a strong capital position, with a leverage capital ratio of 9.18% and a total risk-based capital ratio of 12.59%.As of September 30, 2026, liquidity resources included cash and cash equivalents of $61 million and unused borrowing capacity from credit facilities of $157 million. For the quarter ended September 30, 2026, the Company realized a pre-tax, pre-provision profit of $673,000, compared to a pre-tax, pre-provision profit of $853,000 in the third quarter 2025. Net income for the third quarter of 2026 was $478,000, down from $607,000 in the third quarter 2025. For the nine months ended September 30, 2026, the Company reported pre-tax, pre-provision profit of $1.8 million and net income of $959,000.

Asset quality remains excellent with minimal non-performing assets, an allowance for credit losses of 0.89% of total loans at September 30, 2026, and minimal loan losses. The Company continues to emphasize conservative underwriting and active portfolio oversight.

“First Pacific Bank’s performance reflects disciplined execution, sound financial management, and an ongoing commitment to creating long-term shareholder value,” said Joe Matranga, Chairman of the Board. “Our strong asset quality, capital position, and liquidity provide a solid foundation for navigating changing market conditions and pursuing strategic opportunities that support sustainable growth.”

“The Bank’s financial results demonstrate the strength of our business model and the value of our relationship-driven approach,” said Nathan Rogge, President and Chief Executive Officer. “We remain focused on serving businesses with the expertise, responsiveness, and personalized service they expect from a community bank. Our upcoming expansion into Palm Desert builds on our established experience in the region and reflects our confidence in Coachella Valley’s business community and the opportunities it presents.”

ABOUT FIRST PACIFIC BANK

First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTCID: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. Since opening in 2006, the Bank has offered a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.

Contacts Investor Relations ContactMedia Relations ContactJerro OtsukiAmanda [email protected]@firstpacbank.com  --- Summary Financial Tables Follow ---

CONSOLIDATED BANCORP     First Pacific Bancorp     Consolidated Balance Sheets     (Unaudited)      Sep 30, 2026Jun 30, 2026Mar 31, 2026Dec 31, 2025Sep 30, 2025ASSETS     Cash and due from banks$8,847,646 $7,465,348 $7,145,738 $13,335,659 $4,361,215 Fed funds sold 52,415,000  44,080,000  40,765,000  43,805,000  47,580,000 Total cash and cash equivalents 61,262,646  51,545,348  47,910,738  57,140,659  51,941,215       Debt securities (AFS) 1,422,906  1,530,233  1,600,663  1,692,800  1,756,875 Debt securities (HTM) 92,866,892  94,057,989  95,162,219  96,088,528  96,991,887 Total debt securities 94,289,798  95,588,222  96,762,882  97,781,328  98,748,762       Construction & land development 29,372,632  31,729,264  28,526,915  29,510,901  27,728,045 1-4 Family residential 94,806,929  86,647,515  78,681,754  73,481,444  71,298,162 Multifamily residential 32,154,406  36,208,516  35,741,832  31,117,740  30,456,673 Other commercial real estate  129,528,521  124,427,953  119,250,067  115,196,071  116,977,598 Commercial & industrial 71,000,954  68,258,860  63,922,914  66,023,866  68,930,751 Consumer & Other 4,641,279  5,614,397  4,902,852  4,538,637  4,555,112 Total loans 361,504,721  352,886,505  331,026,334  319,868,659  319,946,341 Allowance for credit losses (loans) (3,200,925) (3,228,938) (3,099,953) (3,122,503) (3,141,203)Total loans, net 358,303,796  349,657,567  327,926,381  316,746,156  316,805,138       Premises, equipment, and ROU net 2,651,011  2,819,645  3,015,551  3,171,482  3,277,724 Goodwill, core deposit & other intangibles 1,191,836  1,172,559  1,184,253  1,195,948  1,200,762 Bank owned life insurance 5,505,976  5,473,563  5,441,454  5,410,102  5,378,503 Accrued interest and other assets 8,440,202  8,476,931  8,071,091  8,170,560  8,585,760       Total Assets$ 531,645,265 $ 514,733,835 $ 490,312,350 $ 489,616,235 $ 485,937,864       LIABILITIES AND SHAREHOLDERS' EQUITY     Deposits:     Noninterest-bearing demand$169,037,177 $145,337,752 $148,975,933 $160,085,795 $134,783,120 Interest-bearing transaction accounts 23,877,309  25,333,189  26,391,254  34,875,562  26,611,844 Money market and savings 208,283,667  208,473,503  188,243,994  174,359,420  186,610,551 Time deposits 47,963,056  40,814,658  46,027,527  36,675,567  41,519,108 Total deposits 449,161,209  419,959,102  409,638,708  405,996,344  389,524,623       Borrowings 34,171,584  47,221,062  33,269,423  36,286,906  50,000,000 Accrued interest and other liabilities 4,964,225  4,800,394  4,867,802  5,376,494  5,211,202 Total liabilities 488,297,018  471,980,558  447,775,933  447,659,744  444,735,825       Shareholders' Equity:     Capital stock and APIC 38,272,515  38,154,923  37,988,844  37,871,816  37,701,986 Retained earnings 5,620,986  5,142,824  5,114,724  4,662,166  4,104,143 Accum other comprehensive income (545,254) (544,470) (567,151) (577,491) (604,090)Total shareholders' equity 43,348,247  42,753,277  42,536,417  41,956,491  41,202,039       Total Liabilities and Shareholders' Equity$ 531,645,265 $ 514,733,835 $ 490,312,350 $ 489,616,235 $ 485,937,864   First Pacific Bancorp     Consolidated Income Statements - Quarterly     (Unaudited)            Sep 30, 2026Jun 30, 2026Mar 31, 2026Dec 31, 2025Sep 30, 2025INTEREST INCOME     Loans, including fees$5,967,671$5,675,916$5,234,634$5,380,149$5,478,759Debt securities 443,385 456,167 461,373 464,580 456,576Fed funds & int-bearing balances 437,414 315,882 436,775 348,027 333,642Total interest income 6,848,470 6,447,965 6,132,782 6,192,756 6,268,977      INTEREST EXPENSE     Deposits 2,000,310 1,800,915 1,741,409 1,907,127 1,766,021Borrowings 327,486 354,089 214,829 218,288 393,330Total interest expense 2,327,796 2,155,004 1,956,238 2,125,415 2,159,351      Net interest income 4,520,674 4,292,961 4,176,544 4,067,341 4,109,626      Provision for credit losses - 470,000 - - -      Net interest income after provision 4,520,674 3,822,961 4,176,544 4,067,341 4,109,626      NONINTEREST INCOME     Service charges, fees and other income 139,455 144,568 128,933 221,064 114,633Gains (losses) on sale of assets 117,897 - - 27,681 29,966Total noninterest income 257,352 144,568 128,933 248,745 144,599      NONINTEREST EXPENSE     Salaries and benefits 2,624,684 2,553,187 2,322,729 2,120,441 2,114,900Occupancy and equipment 270,638 286,315 279,474 238,252 279,715Other expense 1,209,767 1,095,007 1,068,946 1,242,133 1,006,318Total noninterest expense 4,105,089 3,934,509 3,671,149 3,600,826 3,400,933      Income before income tax expense 672,937 33,020 634,328 715,260 853,292      Income tax expense 194,776 4,919 181,771 157,238 246,232      Net Income$ 478,161$ 28,101$ 452,557$ 558,022$ 607,060      Earnings per share basic (QTR)$0.11$0.01$0.10$0.13$0.14Weighted average shares outstanding (QTR) 4,394,748 4,385,156 4,383,452 4,346,140 4,341,356  First Pacific Bancorp  Consolidated Income Statements - Year-to-Date  (Unaudited)      Sep 30, 2026Sep 30, 2025INTEREST INCOME  Loans, including fees$16,878,221 $15,323,400Investment securities 1,360,925  1,383,380Fed funds & int-bearing balances 1,190,071  1,086,993Total interest income 19,429,217  17,793,773   INTEREST EXPENSE  Deposits 5,542,634  5,475,805Borrowings 896,404  740,521Total interest expense 6,439,038  6,216,326   Net interest income 12,990,179  11,577,447   Provision for credit losses 470,000  -   Net interest income after provision 12,520,179  11,577,447   NONINTEREST INCOME  Service charges, fees and other income 412,956  324,302Gains (losses) on sale of assets 117,897  29,966Total noninterest income 530,853  399,490   NON INTEREST EXPENSE  Salaries and benefits 7,500,600  6,462,029Occupancy and equipment 836,427  816,302Other expense 3,373,720  2,661,416Total noninterest expense 11,710,747  9,939,747   Income before income tax expense 1,340,285  2,037,190   Income tax expense 381,466  583,924   Net Income$ 958,819 $ 1,453,266   Earnings per share basic (YTD)$0.22 $0.34Weighted average shares outstanding (YTD) 4,387,827  4,336,901  First Pacific Bancorp      Quarterly Financial Highlights      (Unaudited)        Quarterly   2026  2026  2026  2025  2025 ($$ in thousands except per share data) 3rd Qtr2nd Qtr1st Qtr4th Qtr3rd QtrEARNINGS      Net interest income$ 4,521  4,293  4,177  4,067  4,110 Provision for loan losses$ 0  470  0  0  0 Noninterest income$ 257  145  129  249  145 Noninterest expense$ 4,105  3,935  3,671  3,601  3,401 Income tax expense$ 195  5  182  157  246 Net income$ 478  28  453  558  607        Earnings per share basic$ 0.11  0.01  0.10  0.13  0.14 Weighted average shares outstanding  4,394,748  4,385,156  4,383,452  4,346,140  4,341,356 Ending shares outstanding  4,395,151  4,385,305  4,384,716  4,346,810  4,344,241        PERFORMANCE RATIOS      Return on average assets  0.38% 0.02% 0.39% 0.48% 0.52%Return on average common equity  4.42% 0.26% 4.35% 5.33% 5.92%Yield on loans  6.72% 6.62% 6.66% 6.74% 6.88%Yield on earning assets  5.56% 5.48% 5.50% 5.50% 5.61%Cost of deposits  1.86% 1.77% 1.75% 1.91% 1.85%Cost of funding  2.02% 1.96% 1.88% 2.02% 2.07%Net interest margin  3.67% 3.65% 3.74% 3.61% 3.68%Efficiency ratio  85.9% 88.7% 85.3% 83.4% 79.9%       CAPITAL      Tangible equity to tangible assets  7.95% 8.10% 8.45% 8.35% 8.25%Book value (BV) per common share$ 9.86  9.75  9.70  9.65  9.48 Tangible BV per common share$ 9.59  9.48  9.43  9.38  9.21        ASSET QUALITY      Net loan charge-offs (recoveries)$ 28  371  23  0  0 Allowance for credit losses (loans)$ 3,201  3,229  3,100  3,123  3,141 Allowance to total loans  0.89% 0.92% 0.94% 0.98% 0.98%Nonperforming loans$ 1,034  1,087  1,541  1,200  858        END OF PERIOD BALANCES      Total loans$ 361,505  352,887  331,026  319,869  319,946 Total assets$ 531,645  514,734  490,312  489,616  485,938 Deposits$ 449,161  419,959  409,639  405,996  389,525 Loans to deposits  80.5% 84.0% 80.8% 78.8% 82.1%Shareholders' equity$ 43,348  42,753  42,536  41,956  41,202 Full-time equivalent employees  57  57  49  48  46        AVERAGE BALANCES (QTRLY)      Total loans$ 352,322  343,841  318,801  316,836  315,976 Earning assets$ 488,502  471,712  452,508  446,590  443,150 Total assets$ 504,404  488,199  469,493  464,251  459,678 Deposits$ 426,948  407,196  403,573  396,716  378,916 Shareholders' equity$ 42,962  42,742  42,178  41,498  40,681 

DUNMORE, Pa., Oct. 22, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), parent company of The Fidelity Deposit and Discount Bank, announce their declaration of the Company’s fourth quarter dividend of $0.46 per share, a 7% increase above the previous quarterly cash dividend of $0.43 per share.

“On behalf of the Board of Directors and all Fidelity Bankers, I am proud to announce an increase in our fourth-quarter cash dividend, marking our twelfth consecutive year of dividend growth. Over this 12-year period, our cash dividend has increased by 140%, underscoring the strength and consistency of our financial performance and our long-standing commitment to delivering sustainable value to our shareholders,” shared Daniel J. Santaniello, President and Chief Executive Officer.   “This record reflects disciplined capital management, thoughtful reinvestment in our franchise, and consistent execution of our long-term strategy. Supported by the dedication and commitment of our exceptional Bankers, we remain focused on delivering strong financial performance, maintaining a sound capital position, and creating enduring value for our shareholders.”

The cash dividend of $0.46 per share is payable December 10, 2026, to shareholders of record at the close of business on November 14, 2026.

Fidelity D & D Bancorp, Inc. serves Lackawanna, Luzerne and Northampton Counties through The Fidelity Deposit and Discount Bank’s 21 full-service community banking offices, along with the Fidelity Bank Wealth Management Minersville Office in Schuylkill County. Fidelity Bank provides a digital and virtual experience via digital services and digital account opening through online banking and mobile app.

For more information visit our investor relations web site through www.bankatfidelity.com.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various factors.  These factors include the possibility that increased demand or prices for the company’s financial services and products may not occur, changing economic, interest rate and competitive conditions, technological developments and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.

Contacts:
 Daniel J. SantanielloSalvatore R. DeFrancesco, Jr. President and Chief Executive OfficerTreasurer and Chief Financial Officer 570-504-8035570-504-8000

Richard Belstock to continue with Plumas Bank as Special Assistant to the President  | Source: Plumas Bancorp

QUINCY, California, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq: PLBC), the holding company for Plumas Bank, announced today that Richard Belstock will retire from his position as Executive Vice President and Chief Financial Officer of Plumas Bancorp and Plumas Bank effective January 1, 2027. The Board of Directors has appointed Kelsey Cassinelli, currently Senior Vice President and Principal Accounting Officer, to succeed Mr. Belstock as Executive Vice President, Chief Financial Officer and Principal Financial Officer effective the same date.

Following his retirement as Chief Financial Officer, Mr. Belstock will continue with Plumas Bank as Special Assistant to the President. In this role, he will support the President and the Bank's executive management team during the leadership transition and on other matters as requested. Mr. Belstock has served as Executive Vice President and Chief Financial Officer of Plumas Bancorp and Plumas Bank since 2011.

"Rick has provided dedicated financial leadership to Plumas Bancorp and Plumas Bank, and we appreciate his many contributions to the organization," said Andy Ryback, President and Chief Executive Officer. "We are also pleased that Rick has agreed to remain with the Bank in a continuing role and provide support during this transition."

Ms. Cassinelli currently serves as Senior Vice President and Principal Accounting Officer of Plumas Bancorp and Plumas Bank. She is a member of the Company's finance leadership team and has responsibilities relating to accounting and financial reporting. Prior to joining Plumas Bancorp and Plumas Bank in April, 2026, she held various positions at KPMG LLP since 2016, most recently serving as a senior manager specializing in financial reporting, audit leadership and complex regulatory matters.

Mr. Ryback continued, "Kelsey has demonstrated strong accounting and financial reporting expertise and a thorough understanding of our organization. The Board and management team are confident in her ability to assume the Chief Financial Officer role and help lead the Company forward."

About Plumas Bancorp

Plumas Bancorp is the bank holding company for Plumas Bank, a full-service community bank serving customers in Northern California and Northern Nevada.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements regarding the Company's leadership transition and future operations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

Plumas Bancorp (the “Company”) intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements include statements regarding management’s expectations concerning future events, such the performance of the Company and its management any other statements other than statements of historical facts. Forward-looking statements often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally in areas in which the Company conducts its operations; changes in interest rates; changes in the Company’s capital needs; new litigation or changes in existing litigation; competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. For a discussion of these risks and other factors, please see the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents the Company files with the Securities and Exchange Commission from time to time.

The Company undertakes no obligation to update any forward-looking statement except as required by law.

Contact

Plumas Bancorp
Investor Relations
(530) 283-7305

Thursday, 22 October 2026 10:02 AM

Topic: 

Earnings

STURGIS, MI / ACCESS Newswire / October 22, 2026 / Sturgis Bancorp, Inc. (OTCQX:STBI) today reported for the third quarter of 2026:

Tier 1 Capital

The Bank maintained strong capital ratios, exceeding well capitalized requirements, with Tier 1 leverage capital at 9.21%.

Key Quarterly Highlights

Net income was $2.5 million.Earnings per share of $1.17.Paid dividend of $0.18 per share.Total assets increased to $1.1 billion.From Jason J. Hyska, Sturgis Bancorp, Inc. Chief Executive Officer

"The Bank had a solid third quarter. Earnings growth and tax equivalent net interest margin are up YTD 2026, compared to 2025, while credit quality remains on solid footing. Bancorp also completed a Subordinate Debt Raise that gave the Bank additional capital as we continue market expansion. The Bank recently purchased real estate for a new branch location in Paw Paw, Michigan that will help solidify our footprint in Van Buren County. We expect this full-service office to open late 2027. The Community Banking model is very much alive and well. The Bank will continue to strategically explore geographic areas where we believe a Community Bank can thrive and put the additional capital to work for our shareholders."

Quarterly Income Statement Highlights

Net income for the quarter (3Q26) was $2.5 million, similar to last quarter's (2Q26) $2.5 million net income and up from $2.4 million net income for the same quarter of the prior year (3Q25).Earnings per share were $1.17 for 3Q26, $1.16 for 2Q26, and $1.09 for 3Q25.Tax equivalent net interest margin decreased to 3.72% for 3Q26 from 3.77% from 2Q26, while increasing from 3.54% for 3Q25.Net interest income was $8.9 million during 3Q26, a 2.06% increase from 2Q26's $8.8 million and a 7.71% increase from 3Q25's $8.3 million. These increases were primarily due to interest and dividend income from taxable securities of $1.9 million in 3Q26, compared to income of $1.2 million in 3Q25, as debt securities have increased over the past year.The provision for credit losses was $45,000 for 3Q26, while 2Q26 and 3Q25 reported reversals to the provision of ($688,000) and ($62,000), respectively. The 2Q26 reversal was substantially related to a $40.1 million sale of residential mortgages, which reduced the overall loan portfolio as a whole.Noninterest income totaled $2.8 million during 3Q26, a 31.67% increase from 2Q26's $2.1 million, and a 13.75% increase from 3Q25's $2.4 million.Noninterest expenses totaled $8.5 million during 3Q26, a 1.16% increase from 2Q26's $8.4 million, and an 8.16% increase from 3Q26's $7.9 million.Year-to-Date Income Statement Highlights

Net income for the first nine months of 2026 (YTD 2026) was $7.0 million compared to $5.4 million for the first nine months of 2025 (YTD 2025).Earnings per share were $3.21 for YTD 2026 and $2.52 for YTD 2025.Tax equivalent net interest margin was 3.73% for YTD 2026 and 3.57% for YTD 2025.Net interest income was $26.3 million during 3Q26, a 9.40% increase from 3Q25's $24.1 million. This increase was primarily due to interest and dividend income from taxable securities of $4.4 million for YTD 2026, compared to $2.8 million in 3Q25, as debt securities have increased over the past year.Noninterest income totaled $7.2 million for YTD 2026, a 6.46% increase from YTD 2025's $6.8 million.Noninterest expenses totaled $25.4 million for YTD 2026, a 4.78% increase from YTD 2025's $24.2 million. This increase was primarily due to an increase in compensation and benefits to $15.2 million for YTD 2026, compared to $14.6 million for YTD 2025. Most of this increase is attributable to typical wage increases.Balance Sheet Highlights

Total assets increased to $1.1 billion at the end of 3Q26, a 4.0% increase from the end on 2Q26's $1.0 billion, and a 7.22% increase from the end of 3Q25's $999 million.Cash and cash equivalents decreased to $35.1 million at the end of 3Q26, compared to $65.1 at the end of 2Q26 and $46.0 million at the end of 3Q25.Debt securities - available-for-sale increased to $166 million at the end of 3Q26, compared to $113 million at the end of 2Q26 and $77.1 million at the end of 3Q25. This increase was primarily due to reinvesting the loan sale proceeds from the aforementioned $40.1 million sale of residential mortgages.Loans held for sale decreased to $373,000 at the end of 3Q26, compared to $5.3 million at the end of 2Q26 and $5.8 million at the end of 3Q25. Loan sales were suspended in 3Q26, as the net yield on these loans was favorable compared to alternative investing opportunities.Loans, net of allowance for credit losses increased to $772 million at the end of 3Q26, compared to $755 million at the end of 2Q26, while it decreased compared to $781 million at the end of 3Q25.Increase from prior quarter due to suspension of loan sales and overall loan growth.Decrease from the same quarter for the prior year due to aforementioned $40.1 million sale of residential mortgages. This sale was a strategic decision to enhance the Bank's interest rate risk profile.Bank-owned life insurance increased to $21.2 million at the end of 3Q26, compared to $16.1 million at the end of 2Q26 and $15.7 million at the end of 3Q25. During the quarter, the Bank purchased additional life insurance on key employees as a long-term investment to help manage the increasing costs of providing employee benefit programs.Total deposits as of the end of 3Q26 were $952 million, compared with $893 million at the end of 2Q26 and $894 million at the end of 3Q25.Borrowed funds decreased to $15.7 million at the end of 3Q26, compared to $56.6 million at the end of 2Q26 and $15.7 million at the end of 3Q25. The Bank paid off short-term borrowings with cash reserves in part from the offering of new subordinated debt during 3Q26.Subordinated debt was issued during 3Q26 and ended the quarter at $24.8 million. There was a balance of $15.0 million at the end of 3Q25. The prior year's debt was called in 4Q25, which is why there was no balance at the end of 2Q26. The Bank used the net proceeds from the 3Q26 issuance for general corporate purposes, including repayment of approximately $17.9 million of existing indebtedness and a downstream of capital to the Bank.Total equity at the end of 3Q26 was $65.6 million, compared to $66.8 million at the end of 2Q26 and $61.3 million at the end of 3Q25. Although retained earnings increased $2.1 million during 3Q26, this was offset by a $3.4 million unrealized loss in other comprehensive income, due to market value decreases in available-for-sale debt securities during the quarter.Book value per share was $30.13 ($25.81 tangible) at the end of 3Q26, compared to $30.73 ($26.41 tangible) at the end of 2Q26 and $28.29 ($24.15 tangible) at the end of 3Q25.About Sturgis Bancorp, Inc.

Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company (the Bank), and its subsidiaries: Oakleaf Financial Services, Ayres/Oak Insurance, and Oak Title Services. The Bank provides a full array of trust, commercial, and consumer banking services from banking centers in: Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Marshall, Niles, Portage, South Haven, St. Joseph, Three Rivers, and White Pigeon, Michigan. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Ayres/Oak Insurance offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance services.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in several places in this release and include statements regarding intent, belief, outlook, objectives, efforts, estimates, or expectations of Sturgis Bancorp, Inc. (Bancorp), primarily with respect to future events and the future financial performance of Bancorp. Any such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending or future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes in the world, national, and local economies. Bancorp undertakes no obligation to update, amend, or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.

For additional information, visit our website at www.sturgis.bank.

Sturgis Bancorp, Inc. Contacts

Jason J. Hyska, CEO & President, or Brian P. Hoggatt, CFO - (269) 651-9345CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Amounts in thousands, except share and per share data)

Three Months Ended Sep 30, Jun 30, Sep 30, 2026 2026 2025 3Q26 2Q26 3Q25 Interest and dividend income

Loans, including fees

$11,165 $11,356 $11,258 Taxable securities

1,897 1,200 1,174 Tax-exempt securities

39 39 38 Dividend income on securities

205 203 210 Total interest and dividend income

13,306 12,798 12,680 Interest expense

Deposits

3,809 3,543 4,006 Borrowed funds

551 490 368 Total interest expense

4,360 4,033 4,374 Net interest income

8,946 8,765 8,306 Credit loss expense (reversal)

45 (688) (62) Net interest income, after credit loss expense (reversal)

8,901 9,453 8,368 Noninterest income

Service charges on deposits and other fees

359 338 352 Interchange income

452 405 402 Investment brokerage commission income

906 814 759 Mortgage banking activitives

340 242 463 Trust fee income

126 50 93 Earnings on cash value of bank-owned life insurance

133 117 109 Gain on sale of real estate owned, net

149 - 31 Proportionate net income from unconsolidated subsidiaries

191 78 207 Other income

120 64 24 Total noninterest income

2,776 2,108 2,440 Noninterest expenses

Compensation and benefits

5,145 4,991 4,880 Occupancy and equipment

1,215 1,187 1,180 Interchange expenses

236 201 207 Data processing

200 184 361 Professional services

192 165 122 Advertising

233 285 158 FDIC premiums

120 193 170 Other expenses

1,176 1,213 796 Total noninterest expenses

8,517 8,419 7,874 Income before income taxes

3,160 3,142 2,934 Income tax expense

624 621 575 Net income

$2,536 $2,521 $2,359 Earnings per share

$1.17 $1.16 $1.09 Dividends per share

$0.18 $0.18 $0.17 CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Amounts in thousands, except share and per share data)

Nine Months Ended Sep 30, Sep 30, 2026 2025 3Q26 3Q25 Interest and dividend income

Loans, including fees

$33,741 $33,409 Taxable securities

4,370 2,812 Tax-exempt securities

116 115 Dividend income on securities

616 632 Total interest and dividend income

38,843 36,968 Interest expense

Deposits

11,050 11,374 Borrowed funds

1,453 1,518 Total interest expense

12,503 12,892 Net interest income

26,340 24,076 Credit loss expense (reversal)

(521) (103) Net interest income, after credit loss expense (reversal)

26,861 24,179 Noninterest income

Service charges on deposits and other fees

1,056 1,004 Interchange income

1,189 1,082 Investment brokerage commission income

2,507 2,159 Mortgage banking activitives

923 1,225 Trust fee income

245 326 Earnings on cash value of bank-owned life insurance

365 321 Gain on sale of real estate owned, net

149 32 Proportionate net income from unconsolidated subsidiaries

503 420 Other income

280 210 Total noninterest income

7,217 6,779 Noninterest expenses

Compensation and benefits

15,219 14,621 Occupancy and equipment

3,642 3,449 Interchange expenses

639 587 Data processing

556 1,088 Professional services

533 444 Advertising

758 631 FDIC premiums

491 505 Other expenses

3,560 2,913 Total noninterest expenses

25,398 24,238 Income before income taxes

8,680 6,720 Income tax expense

1,711 1,273 Net income

$6,969 $5,447 Earnings per share

$3.21 $2.52 Dividends per share

$0.54 $0.51 CONSOLIDATED BALANCE SHEETS
(Unaudited - Amounts in thousands, except share and per share data)

Sep 30, Jun 30, Sep 30, 2026 2026 2025 3Q26 2Q26 3Q25 ASSETS

Cash and cash equivalents

Cash and due from financial institutions

$13,792 $11,292 $12,289 Other short-term investments

21,277 53,856 33,703 Total cash and cash equivalents

35,069 65,148 45,992 Debt securities - available-for-sale

165,897 112,577 77,111 Debt securities - held-to-maturity

17,465 17,832 18,490 Federal Home Loan Bank stock

9,786 9,786 9,786 Loans held for sale

373 5,256 5,784 Loans, net of allowance for credit losses of $8,486; $8,435;

and $9,271 at 3Q26; 2Q26; and 3Q25, respectively

771,831 755,118 781,236 Mortgage servicing rights

3,569 3,567 3,125 Real estate owned, net

3,407 4,068 485 Premises and equipment, net

17,959 18,222 19,485 Goodwill

5,834 5,834 5,834 Bank-owned life insurance

21,204 16,071 15,723 Accrued interest receivable

4,041 3,604 3,619 Other assets

14,644 12,676 12,285 Total assets

$1,071,079 $1,029,759 $998,955 LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits

Noninterest-bearing

$175,815 $175,449 $162,894 Interest-bearing

775,829 717,465 731,570 Total deposits

951,644 892,914 894,464 Federal Home Loan Bank advances and other borrowings

15,680 56,620 15,680 Subordinated debentures

24,826 - 14,980 Accrued interest payable

2,230 2,165 1,912 Other liabilities

11,110 11,256 10,644 Total liabilities

1,005,490 962,955 937,680 Stockholders' equity

Common stock - $1 par value: authorized - 9,000,000 shares;

issued and outstanding - 2,176,641 shares at 3Q26;

2,173,791 shares at 2Q26; and 2,165,941 shares at 3Q25

2,177 2,174 2,166 Additional paid-in capital

9,074 8,993 8,817 Retained earnings

65,180 63,037 57,743 Accumulated other comprehensive (loss)

(10,842) (7,400) (7,451)Total stockholders' equity

65,589 66,804 61,275 Total liabilities and stockholders' equity

$1,071,079 $1,029,759 $998,955 SOURCE: Sturgis Bancorp, Inc.