5 unchanged sentences
These risks extend to our customers, shareholders, suppliers, and partners, emphasizing the critical need for a robust cybersecurity stance.
−Removed: In light of these challenges, maintaining resilience in our cybersecurity posture is not just a priority but a fundamental necessity to safeguard our operations, performance, and maintaining customer confidence in our banking services.
+Added: In light of these challenges, maintaining resilience in our cybersecurity posture is not just a priority but a fundamental necessity to safeguard our operations, performance, and the maintenance of customer confidence in our banking services.
The Board of Directors oversees management’s processes for identifying and mitigating risks, including cybersecurity risks, to help align our risk appetite with our strategic objectives.
8 unchanged sentences
We rely on a series of processes to identify threats, hazards, and other risks to our information assets .
−Removed: We employ a variety of preventative and detective tools from our Managed Security Services provider designed to monitor, detect, block, and provide alerts regarding suspicious and unauthorized activity and to report on suspected advanced persistent threats.
−Removed: In addition to regular risk assessments, we rely on independent assessments, audits, and cybersecurity feeds from vendors, including directly into patch and vulnerability management tools.
+Added: We employ a variety of preventative and detective tools from our Managed Security Services provider designed to monitor, detect, block, and alert us to suspicious and unauthorized activity, including suspected advanced persistent threats.
+Added: In addition to regular risk assessments, we rely on independent assessments, audits, and cybersecurity feeds from vendors, which integrate directly into our patch and vulnerability management tools.
We engage cybersecurity experts and third-party specialists to perform regular assessments of our infrastructure, software systems, and network architecture.
−Removed: We also leverage internal and external auditors and independent external partners to periodically review our processes,
−Removed: systems, and controls, including with respect to our information security program, to assess their design and operating effectiveness.
−Removed: We have regular and ongoing security education and training for employees and recovery and resilience tests.
+Added: We also leverage internal and external auditors and independent external partners to periodically review our processes, systems, and controls, including our information security program, to assess their design and operating effectiveness.
+Added: We provide regular and ongoing security education and training for employees and conduct recovery and resilience tests.
+Added: The Company maintains a cyber insurance policy as part of its overall risk management strategy to mitigate financial losses in the event of a cybersecurity incident.
The Bank also retains third-party experts to conduct intrusion and penetration testing on an annual basis.
−Removed: All risk and security assessments results are shared with the Board of Directors.
−Removed: Our assets are classified and protected based on the results of our risk assessment practices, which assess a variety of critical factors, including the type of data stored, system availability needs, confidentiality requirements, recovery time objectives, transactional processing, the number of users, and the volume and magnitude of transactions.
+Added: All risk and security assessment results are shared with the Board of Directors.
+Added: Our assets are classified and protected based on the results of our risk assessment practices, which assess a variety of critical factors, including the type of data stored, system availability needs, confidentiality requirements, recovery
+Added: time objectives, transactional processing, the number of users, and the volume and magnitude of transactions.
Our Information Technology teams meet to ensure that risks are timely identified, patch and vulnerability requirements are monitored, and the necessary changes are implemented.
3 unchanged sentences
Identified Cybersecurity Risks
−Removed: Federal regulators have issued multiple statements and guidance regarding cybersecurity and that financial institutions need to design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised client credentials, including security measures to reliably authenticate clients accessing internet-based services of the financial institution.
−Removed: In addition, a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the timely recovery, resumption and maintenance of the institution’s operations in the event of a cyber-attack.
−Removed: A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers fall victim to a cyber-attack.
−Removed: If a financial institution fails to observe the regulatory guidance, they could be subject to various regulatory sanctions, including financial penalties.
−Removed: State regulators have also been increasingly active in implementing cybersecurity standards and regulations.
−Removed: Recently, several states have adopted laws and/or regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements.
−Removed: Many such states have also recently implemented or modified their data breach notification and data privacy requirements.
−Removed: We expect this trend of state-level activity in those areas to continue, and we continue to monitor relevant legislative and regulatory developments.
−Removed: In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations to store and transmit sensitive data.
−Removed: We employ a layered, defensive approach that leverages people, processes, and technology to manage and maintain cybersecurity controls.
−Removed: We employ a variety of preventative and detective tools to monitor, block, and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats.
−Removed: Notwithstanding the strength of our defensive measures, the threat from cyber-attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures.
−Removed: While to date we have not detected a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, our systems and those of our clients and third-party service providers are under constant threat and there can be no assurance that our cybersecurity risk management program will be fully effective in protecting the confidentiality, integrity and availability of our information systems and our solutions.
−Removed: Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking and other technology-based products and services by us and our clients.
−Removed: Risk Factors for a further discussion of risks related to cybersecurity.
+Added: Federal and state regulators have issued guidance requiring financial institutions to implement layered security controls, strengthen client authentication for online services, and address risks from compromised credentials.
+Added: Institutions must also maintain business continuity plans to ensure timely recovery of operations and data following a cyber-attack.
+Added: Failure to comply with these regulations may result in sanctions, including financial penalties.
+Added: State regulators have increasingly enacted cybersecurity laws, including requirements for cybersecurity programs, data encryption, and breach notification.
+Added: Many states have recently updated their data privacy regulations, and we expect this trend to continue.
+Added: We actively monitor legislative and regulatory developments to ensure compliance.
+Added: In the ordinary course of business, we rely on electronic communications and information systems to conduct operations and store and transmit sensitive data.
+Added: We employ a layered cybersecurity approach, leveraging people, processes, and technology to monitor, detect, and mitigate threats.
+Added: Our defenses include a variety of preventative and detective tools designed to block unauthorized activity and identify advanced persistent threats.
+Added: Despite these measures, cyber-attacks are increasingly sophisticated and frequent, particularly in the financial services sector.
+Added: While we have not experienced a material cybersecurity incident to date , a significant breach could result in financial losses, operational disruptions, reputational harm, regulatory scrutiny, or legal liability.
+Added: In addition to securing our own systems, we rely on third-party service providers for various critical functions, including payment processing, cloud storage, and cybersecurity tools.
+Added: Our systems, as well as those of our clients and third-party vendors, remain under constant threat, and vulnerabilities within these external providers could also pose risks to our operations.
+Added: Given the evolving nature of cyber threats and the expanding use of online banking and digital services, our risk exposure is expected to remain high.
+Added: We continuously assess and monitor cybersecurity threats in real time, including risks associated with third-party providers, to enhance our security posture.
+Added: However, there can be no assurance that our cybersecurity risk management program will fully protect the confidentiality, integrity, and availability of our information systems and solutions.
See “Risks Related to Cybersecurity, Third Parties and Technology” under “Item 1A.
−Removed: Risk Factors” in this Form 10-K for a further discussion of risks related to cybersecurity.
+Added: Risk Factors” in this Form 10-K for further discussion of risks related to cybersecurity.
Management and Board Oversight of Cybersecurity Risks
−Removed: Our Cybersecurity Program is managed by the Director of Information Technology who leads our Information Technology team responsible for leading enterprise-wide cybersecurity strategy, policy, standards, architecture, and
−Removed: The Director of Information Technology provides periodic reports to the executive risk management committee and the board-level risk committees of the Company and the Bank and the Chief Executive Officer and other members of our senior management, as well as the cross-functional management team that oversees the information security and information technology programs.
+Added: Our Cybersecurity Program is managed by our Director of Information Technology , who leads our Information Technology team responsible for implementing our enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes.
+Added: The Director of Information Technology provides periodic reports to the executive risk management committee, the board-level risk committees of the Company and the Bank and the Chief Executive Officer and other members of our senior management, as well as the cross-functional management team that oversees the information security and information technology programs.
These reports address key cybersecurity topics, including the implementation and operation of preventative controls and the detection, mitigation, and remediation of cybersecurity incidents.
−Removed: The Chief Operating Officer, Chief Risk Officer, and board-level risk committees of the Bank provide comprehensive reports to the full Board of Directors regarding pertinent cybersecurity risk management topics.
+Added: The Board receives formal cybersecurity updates at least quarterly from the Director of Information Technology , the Chief Operating Officer, and the Chief Risk Officer.
+Added: These reports include updates on emerging threats, incident response activities, regulatory developments, and enhancements to cybersecurity frameworks.
+Added: Additionally, the Board periodically conducts cybersecurity resilience reviews, including scenario planning and tabletop exercises, to evaluate preparedness for potential cyber incidents.
+Added: The Chief Operating Officer, Chief Risk Officer, and board-level risk committees of the Bank also provide comprehensive reports to the full Board of Directors regarding pertinent cybersecurity risk management topics.
Our Director of Information Technology has more than 20 years’ experience in financial services, substantial relevant expertise and formal training in the areas of information security and cybersecurity risk management and is accountable for managing our enterprise information technology department and developing and implementing our cybersecurity and information security programs.
−Removed: These qualifications, certifications, and experience include a degree from the University of California, Santa Barbara with focus on Business Administration coursework, Certified Information Systems Security Professional from ISC2 Organization.
+Added: These qualifications, certifications, and experience include a degree from the University of California, Santa Barbara with a focus on business administration coursework and a Certified Information Systems Security Professional designation from ISC2 Organization.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.