Second Quarter 2026 Highlights

As we reflect on the first half of 2026, I am proud of the progress Beach Cities Commercial Bank continues to make. Our team remains focused on building lasting client relationships, delivering exceptional service, and executing on our long-term strategy. The results highlighted in this report demonstrate the strength of our franchise, the quality of our loan portfolio, and our continued commitment to disciplined growth.

A significant milestone this quarter was successfully completing our three-year de novo period. The de novo period represents the formative years of a newly chartered bank, during which regulatory oversight is heightened as the institution establishes its operational foundation, capital strength, and risk management practices. Successfully exiting this phase is an important achievement that reflects the dedication of our employees, the confidence of our clients and shareholders, and the sound framework we have built to support future growth.

We also made meaningful strides toward sustained profitability while maintaining strong asset quality and a solid liquidity position. For example, in addition to achieving profitability during the second quarter, in the subsequent month of July we reached Year-To-Date profitability.   Our deposits receded from their December peak as we focused on deposit quality, but our plans and investments are expected to yield deposit growth starting in the 3rd and 4th quarters. These accomplishments position us well for the future as we continue to expand our presence, deepen customer relationships, and pursue new opportunities. On behalf of our Board of Directors and the entire Beach Cities Commercial Bank team, thank you for your continued trust, support, and partnership. We look forward to building on this momentum in the months ahead.

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