A comprehensive restructuring of the investment portfolio executed in late 2025, involving the sale of $593.2 million in low-yielding legacy held-to-maturity (HTM) securities and reinvesting the proceeds into higher-yielding securities at approximately 4.26%. Capital ratios were replenished by issuing $45 million in subordinated debt at 6.75%.

Expected impact: Expected to drive significant net interest margin expansion, contributing approximately $0.40 per share in earnings accretion and a 25 basis point lift to net interest margin over twelve months.

Focusing on expanding commercial lending and deposit relationships in key Northern California markets, with particular emphasis on driving high-quality loan originations in the Greater Sacramento area.

Expected impact: Targeting mid-single-digit loan growth and increased deposit granularity to manage overall funding costs.

Implementing strict cost controls and strategic staffing adjustments to build operating leverage, while selectively investing in technology and revenue-producing talent.

Expected impact: Aims to offset seasonal expense increases and support long-term profitability scaling.