Commercial Bank of California’s Strong Growth and Robust Profitability Continue Through Third Quarter of 2025

Highlights Include:

• Total assets, deposits, and loans all increased over prior-year levels to new highs, reflecting both organic growth and 2024's Community Bank of the Bay merger
• Net income nearly doubled year-over-year, rising by 92.2% to the highest nine-month net income in CBC's history
• Net interest income increased year-over-year by 65.2%, reflecting the significant expansion of net interest margin

IRVINE, CALIF. (December 4, 2025) - Commercial Bank of California ("CBC" or "Bank"), a BauerFinancial Four-Star Excellent Bank, today reported net income of $29.8 million for the first nine months of 2025, a strong increase from the $15.5 million recorded in the initial nine months of 2024. For the third quarter of 2025, the Bank's net income was $11.1 million, compared to net income of $5.4 million for the same period of 2024, an increase of $5.7 million or 105.6% year-over-year. Most of CBC's financial metrics reflected the benefits of the November 2024 acquisition of Community Bank of the Bay ("CBB") and organic growth in earning assets in comparison with the levels of the prior year.Net interest income before provision for credit losses for the first nine months of 2025 increased by 65.2%, or $38.6 million, to $97.9 million from $59.3 million in the prior year-to-date period. The increase was primarily due to an increase of more than $1 billion in average earning assets and a 51 basis point expansion in net interest margin, increasing to 3.62% from 3.11% year-over-year. Provisions for credit losses were $2.7 million through the third quarter of 2025 versus $2.4 million for the first nine months of 2024. Credit quality and borrower performance have remained generally strong to this point in 2025, reflecting a selective, disciplined approach to lending as well as strong client relationships and a proactive approach to credit management.

Net income for the third quarter of 2025 surged to $11.1 million from $5.4 million in 2024's third quarter, an increase of $5.7 million, or 105.6%. Once again, results were primarily driven by a $15.1 million increase in net interest income before provision for credit losses, attributable to more than $1.1 billion growth in average earning assets and a 68 basis point expansion in net interest margin, rising to 3.74% from 3.06% year-over-year. These increases were partially offset by higher salaries, employee benefits, occupancy costs, and other operational expenses including data processing, mainly due to the acquisition of CBB's operations.

CBC's total assets at September 30, 2025 were $3.8 billion, an increase of $1.3 billion (or 51.9%), compared to $2.5 billion on the same date in 2024. Net loans accelerated to $2.6 billion on September 30, 2025 from $1.8 billion on the corresponding date in 2024, an increase of $870.7 million, or 49.4%. Deposits advanced from $2.1 billion at the end of 2024's third quarter to $3.2 billion on September 30, 2025, an increase of $1.2 billion or 56.4%. The significant growth in loans and deposits reflects both the acquisition of CBB and strong organic growth.

Total capital increased to $331.2 million at September 30, 2025 from $194.5 million a year earlier. The increase was principally due to the capital treatment of the CBB transaction, CBC's holding company's additional capital contribution in support of that transaction, and the retention of earnings from CBC's continued profitability. CBC's capital position also benefited from a reduction in the Bank's Accumulated Other Comprehensive Loss (which reflects declines in the fair value of Available-For-Sale securities) thanks to value increases for Available-For-Sale securities resulting from a slight decline in interest rates over the past year. The Bank's capital ratios continue to be well above all applicable regulatory standards for well-capitalized status, the highest category of capital strength established by banking regulators. At September 30, 2025 the Bank's Tier 1 Leverage Ratio was 8.81%, its Tier 1 Capital to Risk Weighted Assets ratio was 11.20%, and its ratio of Total Capital to Risk Weighted Assets was 12.26%. Returns on average assets and average equity improved to 1.15% and 13.61% in the third quarter of 2025 from 0.81% and 11.42% in the same period a year earlier, respectively.

Ash Patel, Chairman, President, and Chief Executive Officer, commented: "Commercial Bank of California's excellent 2025 performance continued in the third quarter of the year. The synergies and other benefits of 2024's Community Bank of the Bay transaction remain evident and are increasing, as demonstrated by our substantial balance sheet growth and the corresponding increase in CBC's net income. Once again, our results were driven by growth in earning assets and net interest margin, leading to a continued expansion of net interest income, all based on solid asset quality. While we intend to remain focused on these factors, which have contributed so much to our success, we will also strive to further strengthen our operating results through enhanced revenues and judiciously-managed expenses. In addition, we remain alert for potential refinements to our balance sheet structure to help maximize our financial strength and flexibility. In particular, while expertise in Small Business Administration and other government-guaranteed lending has always been one of CBC's hallmarks, our strong and growing SBA lending team is expected to further increase our success in this important sector. While the current economic environment is fluid, CBC remains well-positioned for any anticipated changes. We expect to thrive regardless of future developments, and both we and our clients can look forward to the future's emerging opportunities.

Mr. Patel concluded: "We are gratified and encouraged by CBC's increasing accomplishments. But as before, the foundation of our success remains the clients, team members, and friends without whose support neither our past success nor our bright future would be possible. We offer our sincere thanks for your loyalty, support, and all you have contributed to making our achievements a reality."

About Commercial Bank of California

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

STATEMENTS OF CONDITION (UNAUDITED)
($000s omitted)		September 30, 2025				September 30, 2024
ASSETS:
Cash and due from banks	$	18,382			$	14,252
Interest bearing deposits with banks		505,649				251,373
Fed funds sold		0				0
Cash and cash equivalents		524,031				265,625
Investment securities		542,248				413,033
Loans		2,663,464				1,781,788
Less: allowance for credit losses		30,867				19,874
Loans, net		2,632,597				1,761,914
Premises and equipment - net		12,472				7,371
Other real estate owned		4,301				0
Accrued interest receivable and other assets		130,631				83,596
Total assets	$	3,846,280			$	2,531,539
LIABILITIES AND CAPITAL:
Non-interest bearing deposits	$	1,352,806			$	864,706
Interest bearing demand deposits		359,369				240,600
Savings and money market deposits		1,167,958				779,888
Time deposits		344,065				176,821
Total deposits		3,224,198				2,062,015
Fed funds purchased		0				230
Other borrowings		254,537				244,978
Accrued interest payable and other liabilities		35,830				29,768
Total liabilities		3,514,565				2,336,991
Stated capital		229,583				123,393
Retained earnings		120,337				93,305
Accumulated other comprehensive income (loss)		-18,205				-22,150
Total capital		331,715				194,548
Total liabilities and capital	$	3,846,280			$	2,531,539

STATEMENTS OF OPERATIONS (UNAUDITED)
		Nine Months Ended		Nine Months Ended
($000's omitted)		September 30, 2025		September 30, 2024
Interest on loans	$	126,007	$	80,221
Interest on deposits with banks		14,516		13,309
Interest on investment securities		12,896		9,537
Other interest income		1,461		819
Total interest income		154,880		103,886
Interest on deposits		47,347		34,374
Interest on borrowings		9,605		10,217
Total interest expense		56,952		44,591
Net interest income		97,928		59,295
Provision for loan losses		2,701		2,383
Net interest income after provision for loan losses		95,227		56,912
Bank service charges and fees		865		865
Payment processing fee income		10,884		10,299
Other income		5,237		1,599
Other operating income		16,986		12,763
Salaries and related benefits		42,252		31,142
Occupancy expenses		4,338		2,761
Other expenses		23,767		13,492
Total other operating expenses		70,357		47,395
Income before provision for income taxes		41,856		22,280
Provision for income taxes		12,056		6,774
Net income	$	29,800	$	15,506

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

Commercial Bank of California
Member FDIC, Equal Housing Lender