What changed in this filing

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Item 1. Business

2026-02-27 compared with 2025-03-17 · 113 added, 223 removed, 599 unchanged (36% of the section changed)

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Our executive offices are located at 5415 Evergreen Way, Everett, Washington 98203, and our telephone number is (425) 257-9000.

Our website address is www.coastalbank.com.

Our website addresses are www.coastalbank.com and www.ccbx.com.

Information on our website should not be considered a part of this Annual Report on Form 10-K.

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We currently operate 14 full-service banking locations, 12 of which are located in Snohomish County, where we are the largest community bank by deposit market share, and two of which are located in neighboring counties (one in King County and one in Island County).

The CCBX segment provides banking as a service (“BaaS”) that allows our broker-dealer and digital financial service partners to offer their customers banking services.

The CCBX segment had a total of 24 relationships, at varying stages, including three signed letters of intent as of December 31, 2024.

The CCBX segment provides banking as a service (“BaaS”) that allows our digital financial service partners to offer their customers banking services.

The CCBX segment had 28 partners as of December 31, 2025.

The treasury & administration segment includes investments, debt and other reporting items that are not specific to the community bank or CCBX segments.

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The Puget Sound region, which comprises over 62% of the population of the state of Washington, and approximately 61% of the number of businesses located therein, has a population of approximately 5.1 million, over 147,000 businesses and $155.2 billion of deposits with us and other banking institutions located in the region.

We are the largest locally headquartered bank by deposit market share in Snohomish County, according to data from the FDIC as of June 30, 2024, which includes CCBX deposits recorded at Snohomish County locations, at which date we had a 17.5% deposit market share in Snohomish County, which was up from 15.8% in 2023 and 13.0% in 2022.

We aim to continuously enhance our customer base, increase loans and deposits and expand our overall market share in Snohomish County.

In light of our market position and our business strategy, we do not regularly compete for commercial or retail deposits in the city of Seattle, and we believe this strategic decision has enabled us to generate low-cost core deposits to fund our loan growth.

Our CCBX market extends throughout the United States through our broker dealers and digital financial services partners.

Our banking operations are primarily focused on serving customers within Snohomish County and other select areas of the Puget Sound region.

Our strategy emphasizes relationship-based banking and targeted growth within our core markets, where we seek to serve the needs of commercial and retail customers and attract stable core deposits to support loan growth.

We believe our focus on these markets aligns with our operating model and allows us to deploy resources efficiently while maintaining a disciplined approach to growth.

Our CCBX market extends throughout the United States through our digital financial services partners.

Our CCBX partners make our banking products and services available to their consumers, partners and workforce through integration with our banking platform.

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Working with our CCBX partners allows us to provide a broader range of services for different demographics through their offerings.

Developing the kind of unique offerings to specific under-served or

under-banked populations would be difficult for a bank our size, but through our CCBX partnerships we are able to use our banking charter to support this effort in a much broader scope.

As of December 31, 2024, the CCBX segment had a total of 24 relationships as indicated in the chart below, at varying stages, including three signed letters of intent as of December 31, 2024.

Developing the kind of unique offerings to specific under-served or under-banked populations would be difficult for a bank our size, but through our CCBX partnerships we are able to use our banking charter to support this effort in a much broader scope.

As of December 31, 2025, the CCBX segment had a total of 28 relationships as indicated in the chart below, at varying stages, including one signed letter of intent as of December 31, 2025.

(1) Acquired GreenFi assets during the quarter ended December 31, 2025

(2) Our partner is a subsidiary of a parent entity with broker-dealer subsidiaries.

Segment Reporting

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The community bank segment includes all community banking activities, with a primary focus on providing a wide range of banking products and services to consumers and small to medium sized businesses in the broader Puget Sound region in the state of Washington and through the Internet and our mobile banking application.

The CCBX segment provides BaaS that allows our broker-dealer and digital financial service partners to offer their customers banking services.

The CCBX segment provides BaaS that allows our digital financial service partners to offer their customers banking services.

The treasury & administration segment includes investments, debt and other reporting items that are not specific to the community bank or CCBX segments.

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Lending Activities

We focus primarily on commercial lending in our community bank and primarily consumer business lending in CCBX.

We focus primarily on commercial lending in our community bank and primarily consumer and business lending in CCBX.

We offer a variety of loans to business owners, including commercial and industrial loans and commercial real estate loans secured by owner-occupied commercial properties.

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Included in the commercial and industrial loan balance is $224.4 million in community bank loans and $229.6 million in CCBX commercial loans.

We make commercial and industrial loans, including term loans, commercial lines of credit, capital call lines, working capital loans, equipment financing, borrowing

base loans, Small Business Administration (“SBA”) loans, and other loan products, that are underwritten on the basis of the borrower’s ability to service the debt from income.

We make commercial and industrial loans, including term loans, commercial lines of credit, capital call lines, working capital loans, equipment financing, borrowing base loans, Small Business Administration (“SBA”) loans, and other loan products, that are underwritten on the basis of the

borrower’s ability to service the debt from income.

We take as collateral a lien on general business assets including, among other things, available real estate, accounts receivable, inventory and equipment and generally obtain a personal guaranty from the borrower or principal.

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Capital call lines represent 46.4% of total commercial and industrial loans, and are included in CCBX commercial and industrial loans.

As of December 31, 2024, our total commercial SBA portfolio, excluding Paycheck Protection Program (“PPP”) loans, was $1.8 million, net of $1.9 million in loans sold, with $1.0 million guaranteed by the SBA.

As of December 31, 2025, our total commercial SBA portfolio was $1.6 million, net of $1.3 million in loans sold, with $2.9 million guaranteed by the SBA, and included an immaterial amount of Paycheck Protection Program (“PPP”) loans.

We participate in the SBA 7(a) program in order to meet the needs of our small business community.

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We typically sell in the secondary market the SBA-guaranteed portion (generally 75% of the principal balance) of the SBA loans we originate.

As of December 31, 2024, our commercial and industrial loans included $2.26 million in PPP loans.

These are SBA loans that allowed small business owners to apply for financial assistance via the PPP as prescribed in the CARES Act.

These loans have a contractual rate of 1.0%, with maturity terms of two to five years, are unsecured, 100% guaranteed and loan proceeds may be forgiven by the SBA if used for certain purposes.

Commercial Real Estate .

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Loan amounts generally do not exceed 75% of the lesser of the appraised value or the purchase price.

As of December 31, 2024, we had a total of $1.1 million, and serviced $1.6 million in loans sold to others that are guaranteed by the SBA, in commercial real estate SBA loans.

Also included in commercial real estate loans was $107.2 million, or 3.1% of total loans, in loans under the SBA 504 program.

Under the SBA 504 program we make loans to small businesses to provide funding for the purchase of real estate and we provide up to 90% financing of the total purchase cost, represented by two loans to the borrower.

The first lien loan is generally a long-term, fully amortizing, fixed-rate loan made in the amount of 50% of the total purchase cost.

The second lien loan is a short-term, interest only, adjustable rate loan

made in the amount of 40% of the total purchase cost, which is generally paid off within three to six months after full receipt of loan proceeds from a certified development corporation that provides long-term financing directly to the borrower.

Our multi-family residential loan portfolio is comprised of loans secured by apartment buildings, residential mixed-use buildings and, to a lesser extent, senior living centers.

As of December 31, 2024, we had $412.0 million on multi-family residential loans, representing 30.0% of our commercial real estate loans, and 11.8% of total loans.

Commercial real estate lending with respect to non-owner occupied properties typically involves higher loan principal amounts and the repayment is dependent, in large part, on sufficient income from the properties securing the loans to cover operating expenses and debt service.

We require that our commercial real estate loans to investors be secured by well-managed properties with adequate margins and generally obtain a guaranty from responsible parties.

As of December 31, 2024, we held $565.5 million in other non-owner occupied loans, excluding multifamily loans, representing 41.1% of our commercial real estate loans and 16.2% of total loans.

As of December 31, 2025, we held $531.1 million in other non-owner occupied loans, excluding multi-family loans, representing 41.3% of our commercial real estate loans and 14.1% of total loans.

Our multi-family residential loan portfolio is comprised of loans secured by apartment buildings, residential mixed-use buildings and, to a lesser extent, senior living centers.

As of December 31, 2025, we had $367.9 million on multi-family residential loans, representing 28.6% of our commercial real estate loans, and 9.8% of total loans.

As of December 31, 2025, we had a total of $829,000, and serviced $908,000 in loans sold to others that are guaranteed by the SBA, in commercial real estate SBA loans.

Also included in commercial real estate loans was $93.7 million, representing 7.3% of our commercial real estate loans, and 2.5% of total loans, under the SBA 504 program.

The first lien loan is generally a long-term, fully amortizing, fixed-rate loan made in the amount of 50% of the total purchase cost.

The second lien loan is a short-term, interest only, adjustable rate loan made in the amount of 40% of the total purchase cost, which is generally paid off within three to six months after full receipt of loan proceeds from a certified development corporation that provides long-term financing directly to the borrower.

Construction, Land and Land Development Loans .

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As of December 31, 2025, we had $466.4 million in residential real estate loans, representing 12.4% of total loans.

We make one-to-four family loans to investors to finance their rental properties and to business owners to secure their business loans.

Included in the residential real estate balance is $202.3 million in community bank loans and $264.1 million in CCBX loans.

Included in community bank residential real estate loans are one-to-four family loans to investors to finance their rental properties and to business owners to secure their business loans.

As of December 31, 2025, residential real estate loans made to investors and business owners totaled $167.3 million, or 35.9% of our residential real estate loans.

CCBX loans totaled $267.7 million, or 57.0% of residential real estate loans, as of December 31, 2024.

These loans are home equity line of credits that are accessed through the use of a consumer card.

These are first and second lien residential loans and require 18 months of home ownership.

Term lengths are up to 30 years and lines range from $50,000 to $400,000.

These loans are made through a CCBX partner to our underwriting standards.

We originate one-to-four family adjustable-rate mortgage (“ARM”), loans for our portfolio and operate as a mortgage broker for mortgage lenders we have agreements with for customers who want a 15-year to 30-year, fixed-rate mortgage loan.

The community bank originates one-to-four family adjustable-rate mortgage (“ARM”), loans for our portfolio and operate as a mortgage broker for mortgage lenders we have agreements with for customers who want a 15-year to 30-year, fixed-rate mortgage loan.

As of December 31, 2025, the balance of ARM portfolio loans was $36.5 million, or 7.8% of residential real estate loans.

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Home equity lines of credit have variable interest rates, while home equity term loans are fixed for up to 5-1/2 years but can be amortized up to a maximum of 180 months with a balloon payment at maturity.

We also purchase residential mortgages originated through other financial institutions to hold for investment with the intent to diversify our residential mortgage loan portfolio, meet certain regulatory requirements and increase our interest income.

As of December 31, 2024, we held $6.1 million, representing 1.3% of our residential real estate loans, in

purchased residential real estate mortgage loans.

The community bank also purchases residential mortgages originated through other financial institutions to hold for investment with the intent to diversify our residential mortgage loan portfolio, meet certain regulatory requirements and increase our interest income.

As of December 31, 2025, we held $4.4 million, representing 0.9% of our residential real estate loans, in purchased residential real estate mortgage loans.

Our last purchase of residential mortgages was in 2018.

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Although purchased loans were originated and underwritten by another institution, our mortgage, credit, and compliance departments conduct an independent review of each underlying loan that includes re-underwriting each of these loans to our credit and compliance standards.

CCBX loans totaled $264.1 million, or 56.6% of residential real estate loans, as of December 31, 2025.

These loans are home equity line of credits that are accessed through the use of a consumer card.

These are first and second lien

residential loans and require 18 months of home ownership.

Term lengths are up to 30 years and lines range from $50,000 to $400,000.

These loans are made through a CCBX partner to our underwriting standards.

Like our commercial real estate loans, our residential real estate loans are secured by real estate, the value of which may fluctuate significantly over a short period of time as a result of market conditions in the area in which the real estate is located.

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Our CCBX segment includes cash secured and unsecured consumer loans, loan products designed to help consumers build credit, credit cards and overdrafts.

Consumer credit cards are open-ended and have interest rates ranging from 7.75% to the maximum allowable rate by state.

For short-term consumer loans, both secured and unsecured options are available and typically have fully-amortizing terms ranging from three months to five years.

Interest rates can be fixed or variable and range from 3.99% to the maximum allowable rate by state.

Consumer credit cards are open-ended and have interest rates ranging from a promotional rate of 0.00% to the maximum rate allowable by state.

For short-term consumer loans, both secured and unsecured options are available and typically have fully-amortizing terms ranging from two months to six years.

Interest rates can be fixed or variable up to the maximum allowable rate by state.

CCBX consumer loans are originated and serviced through our CCBX partners to our underwriting standards.

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The CCBX provision for credit losses and CCBX net-charge-offs include partner accounts that are not covered by credit enhancement therefore those items are included on a separate line item to reflect the exclusion from the credit enhancement asset.

At December 31, 2024, the Company was responsible for credit losses on approximately 5% of a $324.6 million CCBX loan portfolio and represented $20.6 million in loans.

At December 31, 2025, the Company was responsible for credit losses on approximately 5% of a $321.3 million CCBX loan portfolio, or $22.1 million in loans.

The table below shows the activity in the credit enhancement asset for the periods indicated:

As of or for the Twelve Months Ended December 31,

As of or for the Year Ended December 31,

(dollars in thousands) 2025 2024

Credit enhancement at beginning of period 181,890 112,894

CECL Day 1 Adjustment — 4,465

CCBX Provision for credit losses - loans 190,035 277,793

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Credit recoveries settled with partner during period 20,326 13,027

Net losses pending settlement with partner 5,998 18,156

Net change in pending partner settlements (827) 5,998

Net (provision) charge-offs without credit enhancement 881 (472)

Credit enhancement at end of period 177,657 181,890

(1) See Note 23, Restatement of Prior Period Financial Statements

Many CCBX partners also pledge a cash reserve account at the Bank as collateral for loss exposure which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval.

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These cash reserve accounts are included in total deposits on the balance sheet.

Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if a partner is unable to fulfill its contracted obligation then the Bank would be exposed to additional loan and deposit losses (counterparty risk) if the cash flows are not sufficient to fund the reimbursement of loan losses.

Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the Bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, largely as a result of this counterparty risk.

If a CCBX partner does not replenish its cash reserve account the Bank may consider an alternative plan for funding the cash reserve, such as adjusting the funding amounts or timelines to better align with the partner's specific situation.

If a mutually agreeable funding plan is not achieved then the Bank may declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements.

If a mutually agreeable funding plan is not achieved then the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements.

The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to fulfill its obligations and would determine if a write-off is appropriate.

If a default occurs and payments to the CCBX partner are stopped, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease.

For the period ended December 31, 2024, CCBX cash reserve accounts totaled $69.3 million.

If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurs and payments to the CCBX partner are stopped.

For the period ended December 31, 2025, CCBX cash reserve accounts totaled $72.2 million, reflecting the net reserve positions across all partners that have a cash reserve account.

Average balance of the cash reserve accounts are not materially different from the period end balance.

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The CCBX partner determines the rate paid to the end consumer and we determine the rates paid to the partner as indicated in the partner agreement.

Additionally, as of December 31, 2024 we had access to $273.2 million in CCBX customer deposits that are currently being transferred off the Bank’s balance sheet for FDIC insurance purposes and deposit management.

The Bank may be able to retain the transferred deposits for liquidity and funding purposes, if needed.

Depending on the circumstances of how the Bank retains these deposits and its relationship with the customer, these retained deposits could be classified as brokered deposits.

As of December 31, 2025 $843.6 million in CCBX customer deposits were transferred off our balance sheet for FDIC insurance, liquidity and deposit management purposes.

A portion of these deposits may, in accordance with applicable agreements, be transferred back onto our balance sheet for liquidity and funding purposes.

FDIC insurance coverage is provided to the end customer account holder for deposit accounts originated through CCBX partners.

CCBX segment (BaaS)

Our CCBX segment provides BaaS, enabling broker dealers and digital financial service providers to offer their clients banking services.

Our CCBX segment provides BaaS, enabling digital financial service providers to offer their clients banking services.

The “X” is indicative of the technology services that our partners provide.

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In doing so, our addressable market expands to a broader spectrum of consumers as well as small businesses.

We had a total of 24 relationships, at varying stages, including three signed letters of intent as of December 31, 2024.

We continue to refine the criteria for CCBX partnerships, exploring relationships with larger and more established partners, with experienced management teams, existing customer bases and strong financial positions and will continue to exit partnerships where it makes sense for us to do so.

We had a total of 28 relationships, at varying stages, including one signed letter of intent as of December 31, 2025.

We continue to refine the criteria for CCBX partnerships, by focusing on larger, established partners with strong management, customer bases, and finances, while also considering promising smaller partners that fit our approach and terms, and we will continue to exit partnerships where it makes sense for us to do so.

We are primarily holding the majority of our on-balance sheet liquidity in interest bearing bank deposits to limit our exposure to interest rate and price risk and to provide readily available funds for loan growth.

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Agency residential mortgage-backed securities obligations.

We regularly evaluate the

composition of our investment portfolio as the interest rate yield curve changes and may sell or pledge investment securities from time to time to adjust our exposure to interest rates or to provide liquidity to meet loan demand.

We regularly evaluate the composition of our investment portfolio as the interest rate yield curve changes and may sell or pledge investment securities from time to time to adjust our exposure to interest rates or to provide liquidity to meet loan demand.

As of December 31, 2025, we had $2.2 million in equity investments.

The equity investments will be held at cost minus any impairment.

This measurement should be applied until the investment has a determinable value or does not qualify for the measurement election (e.g., if the investment has a readily determinable fair value).

The equity investments are held at cost minus any impairment until the investment has a determinable value or does not qualify for the measurement election (e.g., if the investment has a readily determinable fair value).

We will reassess at each reporting period whether our equity investment without a readily determinable fair value qualifies to be measured at cost minus impairment.

These equity investments without a readily determined fair value include:

• a $2.2 million equity interest in a specialized bank technology company as of December 31, 2024 and December 31, 2023;

• a $1.8 million and $2.2 million equity interest in a specialized bank technology company as of December 31, 2025 and December 31, 2024, respectively;

• a $350,000 equity interest in a technology company as of the years ended December 31, 2025 and December 31, 2024;

• a $42,000 and $47,000 equity interest in a technology company as of the years ended December 31, 2025, and December 31, 2024, respectively.

Additionally, we have invested in funds that are accelerating technology for adoption by banks.

Additionally, we have invested in technology-focused funds, including those targeting innovation and adoption within the banking industry.

These equity investments are held at fair value, as reported by the funds.

During the year ended December 31, 2024, the Company contributed $72,000 with investment funds designed to help accelerate technology adoption at banks, and recognized net gains of $29,000, resulting in an equity interest of $910,000 at December 31, 2024, compared to $809,000 at December 31, 2023.

The Company has committed up to $480,000 in capital for these equity funds, however, we are not obligated to fund these commitments prior to a capital call.

During the year ended December 31, 2025, the Company contributed $556,000 and recognized a net gain of $34,000, resulting in an equity interest of $1.5 million at December 31, 2025, compared to $910,000 at December 31, 2024.

The Company has committed up to $1.1 million in capital for these equity funds, however, we are not obligated to fund these commitments prior to a capital call.

We operate in a highly competitive industry and in a highly competitive market.

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The majority of our systems including our electronic funds transfer, transaction processing, and our online banking services are hosted by third-party service providers.

The scalability of this infrastructure will support our growth

The scalability of this infrastructure will support our growth strategy.

In addition, the tested capability of these vendors to automatically switch over to standby systems should allow us to recover our systems and provide business continuity quickly in case of a disaster.

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These systems provide redundancy and disaster recovery capabilities.

Diversity, Equity and Inclusion (“DEI”)

We believe that DEI needs to start at the top of an organization.

As the Company enters and expands its presence in more complex arenas including BaaS, we seek out diverse and qualified director candidates who bring a background and expertise in the fintech and digital banking sectors regardless of their gender, race, or other personal characteristics.

Additionally, we strive for the Company's board of directors to be as diverse as the fintechs themselves.

Since beginning this effort the board of directors has added three women and two directors from minoritized backgrounds.

We strive to maintain a diverse and inclusive work culture in which individual differences and experiences are valued and all employees have the opportunity to contribute and thrive.

We believe that leveraging our employees’ diverse perspectives and capabilities will enhance innovation, foster a collaborative work culture and enable us to better serve our customers and communities.

We also promote DEI by reaching customers through our CCBX partners and the markets they serve.

Our reach extends to a diverse and often underserved market through our BaaS relationships.

These partners offer access to credit, promote financial well-being, provide financial education, and other services to a variety of markets.

Some of the segments served through our BaaS partnerships are women, people of color, young adults, immigrants, small businesses and other underserved populations.

Environment and Sustainability

We are focused on the environment and committed to business practices and activities that encourage sustainability and minimize our environmental impact.

We demonstrate environmental responsibility in various ways, including practical applications of the three R’s:

Reduce waste and energy consumption

• using technology that provides for a paperless environment and transactional efficiencies;

• replacing standard light bulbs with LED bulb that have a longer life and use less energy – most notably many of our parking lot lights have been converted to LED;

• utilizing occupancy sensors or timers that automatically shut off lights and reduce power consumption;

• annual shareholder meetings are virtual and allow for expanded access in a climate friendly manner.

• repurposing existing furniture whenever possible instead of buying new.

• eCycling old technology equipment to avoid sending it to landfills.

Services like mobile and online banking, remote deposit capture, electronic loan payments, eStatements and combined statements enable us to support all customers in their efforts to consume less fuel and paper.

We continue to digitize loan origination and deposit account opening processes, reducing trips to the bank and paper documents for our customers.

Additionally, we work hard to ensure that our lending activities do not encourage business activities that could cause irreparable damage to our reputation or the environment.

As a result, we try to conduct business responsibly, with awareness to environmental, social, and human rights issues while also monitoring credit risks.

This process involves

management and board of director oversight.

In general, we evaluate each credit or transaction on its individual merits, with larger deals receiving more attention and deeper analysis.

Human Capital

As of December 31, 2024, we had 488 full-time equivalent employees, all were located in the United States, however technology has allowed us to expand our reach to include a larger demographic with more remote employees working outside of our physical locations and throughout the country.

As of December 31, 2025, we had 483 full-time equivalent employees, all were located in the United States;

however, technology has allowed us to expand our reach to include a larger demographic with more remote employees working outside of our physical locations and throughout the country.

We seek to attract, retain and develop the most talented employees possible by promoting a strong, positive culture, maintaining a safe and healthy workplace, emphasizing open communication with management and investing in training and education.

In 2024, our retention rate was 83%.

We seek to help our employees grow and develop.

In 2025, we had 92 internal promotions.

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We consider our relationship with our employees to be good and have not experienced interruptions of operations due to labor disagreements.

Our commitment to diversity starts with our board of directors, which oversees the culture and holds management accountable to build and maintain a diverse and inclusive environment.

We believe a diverse workforce is critical to sustainable success.

As of December 31, 2024, 63% of our employees were female, 27% were from underrepresented racial and ethnic groups and 4% have a disability.

We are proud of our workforce and the opportunity to further diversify our team going forward.

We have always led with people, building our Bank on the diverse perspectives, knowledge, and experiences of our employees.

We have always led with people, building our Bank on the wide variety of perspectives, knowledge, and experiences of our employees.

Our employees utilize their strengths to set the course and are empowered to do the right things for our clients.

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stay flexible, take care of each other, embrace gray thinking, be relentless, be the best and be un-bankey.

We seek out talent that will be a cultural fit to our core values and have backgrounds that are as diverse as the clients we serve in each of our business units.

We seek out talent that will be a cultural fit to our core values and have backgrounds that are as varied as the clients we serve in each of our business units.

We believe our staff should be paid for the roles they fulfill, their experience and how they do their jobs, and our goal is to attract, retain and develop quality talent.

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We offer employees two options to support charitable organizations through:

the Employee Giving Fund and the Employee

Workplace Giving Portal.

the Employee Giving Fund and the Employee Workplace Giving Portal.

This is a testament to our commitment to helping and supporting our neighbors by encouraging employees to give to their charity of choice through payroll deduction.

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Since its inception in 2001, the Employee Giving Fund has awarded 478 grants totaling more than $956,000 through the end of 2025.

In 2024 the Employee Giving Fund awarded grants in the amount of $70,500 to 10 local non-profit organizations.

With staff in 40 states, it is important to encourage and enable employees to support their community, wherever they are located.

The Employee Workplace Giving Portal allows employees to support their charity of choice through payroll deduction.

We pay the administrative fees for the program so 100% of employee donations are directed to their charities of choice.

In 2025 the Employee Giving Fund awarded grants in the amount of $63,000 to seven local non-profit organizations.

Volunteering and supporting our communities is an important part of community engagement.

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We focus on building long-term relationships with our community partners to make a significant impact in the markets we serve.

We are particularly interested in supporting projects and organizations whose primary purpose is to improve and revitalize low- and moderate-income areas or to assist low- and moderate-income persons and families to be better able to take part in the financial opportunities available in their community.

In 2024, we awarded impact grants in the amount of $45,000 to five local non-profits.

We are particularly interested in supporting projects and organizations whose primary purpose is to improve and revitalize low- and moderate-income areas or to assist low- and moderate-income

persons and families to be better able to take part in the financial opportunities available in their community.

In 2025, we awarded impact grants in the amount of $100,000 to 11 local non-profits.

Financial Inclusion

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Insured banks, their holding companies and their affiliates are extensively regulated under federal and state law.

various bank regulatory agencies, including the Washington Department of Financial Institutions (“Washington DFI”), the Board of Governors of the Federal Reserve (“Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”) and the Consumer Financial Protection Bureau (“CFPB”).

As a result, our growth and earnings performance may be affected not only by management decisions and general economic conditions, but also by the requirements of federal and state statutes and by the regulations and policies of various bank regulatory agencies, including the Washington Department of Financial Institutions (“Washington DFI”), the Board of Governors of the Federal Reserve (“Federal Reserve”), the Federal Deposit Insurance Corporation (“FDIC”) and the Consumer Financial Protection Bureau (“CFPB”).

Furthermore, tax laws administered by the Internal Revenue Service and state taxing authorities, accounting rules developed by the FASB, securities laws administered by the SEC and state securities authorities, anti-money laundering laws enforced by the U.S.

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These examinations consider not only compliance with applicable laws and regulations, but also capital levels, asset quality and risk, management ability and performance, earnings, liquidity, sensitivity to market risk and various other factors.

The regulatory agencies generally have broad discretion to impose restrictions and limitations on the operations of a regulated entity where the agencies determine, among other things, that such operations are unsafe or unsound, fail to comply with applicable law or are otherwise inconsistent with laws and regulations or with the supervisory policies of these agencies.

The regulatory agencies generally have broad discretion to impose

restrictions and limitations on the operations of a regulated entity where the agencies determine, among other things, that such operations are unsafe or unsound, fail to comply with applicable law or are otherwise inconsistent with laws and regulations or with the supervisory policies of these agencies.

Political, economic and industry events and other factors may influence changes to the banking laws, regulations and policies by the U.S.

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Any change in the statutes, regulations or regulatory policies applicable to us, including changes in their interpretation, expectations or implementation, could have a material effect on our business and operations.

To this end, due to the recent issuance of certain executive orders by the President of the United States, it may not be clear for a period of time as to what the priorities of the three prudential banking agencies, the Office of the Comptroller of the Currency (the “OCC”), Federal Reserve and FDIC, may be with respect to their respective supervisory and enforcement matters for banks and bank holding companies during the current administration.

For example, one executive order requires independent agencies, including the Federal Reserve and FDIC to submit to the White House Office of Management and Budget (“OMB”) major orders proposed by these agencies for OMB’s review.

OMB would also write "performance standards and management objectives" to the heads of independent agencies, review and adjust their budgets, including the Federal Reserve (excluding with respect to its monetary policy function) and the FDIC.

As a result, it may take longer for the prudential banking agencies to establish their supervisory and enforcement priorities and develop and adopt new rules and regulations, or make changes to existing rules and regulations.

Another executive order requires agency heads to determine whether ongoing enforcement of any regulations identified in their regulatory review is compliant with law and policy of the current administration.

This executive order also provides that to preserve resources and ensure lawful enforcement, agency heads, in consultation with the Director of the OMB, shall, on a case-by-case basis and as appropriate and consistent with applicable law, then direct the termination of all such enforcement proceedings that do not comply with the Constitution, laws, or the policy of the current administration.

It is unclear what impact these orders will have on the supervisory and enforcement activities of the OCC, Federal Reserve and FDIC.

To this end, due to executive orders issued by the President of the United States during the current administration, certain aspects of the supervisory and regulatory environment for banks and bank holding companies continue to evolve.

These executive orders require independent agencies, including the Federal Reserve and the FDIC, to submit certain proposed rules to the White House Office of Management and Budget (“OMB”) for review, establish performance standards and management objectives, and subject agency budgets to review and adjustment by the OMB, excluding the Federal Reserve’s monetary policy functions.

In addition, executive orders direct agency heads to review existing regulations and enforcement actions to assess compliance with applicable law and the policy objectives of the current administration, and, in consultation with the OMB, to determine on a case-by-case basis whether to modify or terminate certain enforcement activities.

As a result, the timing, focus, and approach of supervisory, regulatory, and enforcement activities by the Office of the Comptroller of the Currency (the “OCC”), the Federal Reserve, and the Federal Deposit Insurance Corporation (“FDIC”) may continue to be subject to change.

The full impact of these developments on the regulatory framework applicable to banks and bank holding companies remains uncertain.

The following is a summary of the material elements of the supervisory and regulatory framework applicable to us and the Bank.

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The Federal Reserve’s consideration of financial resources includes a focus on capital adequacy, which is discussed in the section entitled “—Bank Regulation and Supervision—Capital Adequacy.” The Federal Reserve also considers the effectiveness of the institutions in combating money laundering, including a review of the anti-money laundering programs and compliance records of the parties.

Finally, the Federal Reserve takes into consideration the extent to which the proposed transaction would result in greater or more concentrated risks to the stability of the U.S.

Federal Reserve takes into consideration the extent to which the proposed transaction would result in greater or more concentrated risks to the stability of the U.S.

banking or financial system.

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We have not elected to become a financial holding company at this time.

the holding company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earning retention that is consistent with the holding company’s capital needs, asset quality and overall financial condition.

The Federal Reserve has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve’s view that a bank holding company should pay cash dividends only to the extent that the holding company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earning retention that is consistent with the holding company’s capital needs, asset quality and overall financial condition.

The Federal Reserve also has indicated that it would be inappropriate for a holding company experiencing serious financial problems to borrow funds to pay dividends.

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FDIC Insurance and Other Assessments

The Bank’s deposits are insured by the FDIC to the full extent provided in the FDIA (currently $250,000 per deposit account), and the Bank pays assessments to the FDIC for that coverage.

Under the FDIC’s risk-based deposit insurance assessment system, an insured institution’s deposit insurance premium is computed by multiplying the institution’s assessment base by the institution’s assessment rate.

An institution’s assessment base equals the institution’s average consolidated total assets during a particular assessment period, minus the institution’s average tangible equity capital (that is, “Tier 1 capital”) during such period.

For institutions like the Bank with less than $10.0 billion in total consolidated assets, the assessment rate is calculated using a financial ratios method based on a statistical model estimating the institution’s probability of failure over three years utilizing seven financial ratios (leverage ratio;

net income before taxes/total assets;

nonperforming loans and leases/gross assets;

other real estate owned/gross assets;

brokered deposit ratio;

one year asset growth;

and loan mix index) and a weighted average of supervisory ratings components.

Since the outbreak of the COVID-19 pandemic, the amount of total estimated insured deposits has grown rapidly while the funds in the FDIC’s Deposit Insurance Fund (“DIF”) have grown at a normal rate, causing the DIF reserve ratio to fall below the statutory minimum of 1.35%.

The FDIC adopted a restoration plan in September 2020, which it amended in June 2022, to restore the DIF reserve ratio to at least 1.35% by September 30, 2028.

On October 18, 2022 the FDIC adopted a final rule to increase initial base deposit insurance assessment rates for insured depository institutions by two basis points, beginning with the first quarterly assessment period of 2023.

The increased assessment rate schedules will remain in effect unless and until the reserve ratio of the DIF meets or exceeds 2%.

As a result of the rule, the FDIC insurance costs of insured depository institutions, including the Bank, will generally continue to increase.

The range of assessment rates effective January 1, 2023, and first applicable on invoices dated June 30, 2023, fall between 2.5 basis points for an established small institution posing the least risk, to 32 basis points for an established small institution posing the most risk.

The FDIC will lower the range of assessment rates if the reserve ratio of the DIF increases to 2% or more.

The FDIC may also impose special assessments from time to time.

The Bank’s deposits are insured by the FDIC to the maximum extent provided under the FDIA, currently $250,000 per depositor, per insured bank, for each account ownership category.

The Bank pays deposit insurance assessments to the FDIC for this coverage.

Under the FDIC’s risk-based deposit insurance assessment system, an insured institution’s deposit insurance premium is calculated by multiplying the institution’s assessment base by its applicable assessment rate.

An institution’s assessment base generally equals its average consolidated total assets during an assessment period, minus its average tangible equity capital during the same period.

For insured depository institutions with less than $10.0 billion in total consolidated assets, including the Bank, assessment rates are determined using a financial ratios method that incorporates a statistical model designed to estimate an institution’s probability of failure over a three-year horizon.

This methodology considers certain financial ratios, including the leverage ratio, net income before taxes to total assets, nonperforming assets to gross assets, other real estate owned to gross assets, brokered deposit ratio, one-year asset growth, and loan mix index, as well as a weighted average of supervisory ratings components.

The FDIC’s Deposit Insurance Fund (“DIF”) reserve ratio declined below the statutory minimum of 1.35% in recent years due to growth in insured deposits relative to DIF balances.

In response, the FDIC adopted a restoration plan, which was subsequently amended, to restore the DIF reserve ratio to at least 1.35% by September 30, 2028.

In October 2022, the FDIC adopted a final rule increasing initial base deposit insurance assessment rates for insured depository institutions by two basis points, beginning with the first quarterly assessment period of 2023.

These increased assessment rates remain in effect unless and until the DIF reserve ratio reaches or exceeds 2.0%.

As a result of these actions, deposit insurance assessment costs for insured depository institutions, including the Bank, have increased.

The assessment rate schedules applicable to small institutions range from 2.5 basis points for institutions posing the least risk to 32 basis points for institutions posing the most risk.

The FDIC may reduce assessment rates if the DIF reserve ratio reaches 2.0% or higher and may also impose special assessments from time to time, as circumstances warrant.

As of September 30, 2025, which is the most recent information available, the DIF reserve ratio was 1.40%.

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The Bank received a Satisfactory rating at its most recent evaluation dated March 7, 2022.

On October 24, 2023, the FDIC, the Federal Reserve and the OCC released a final rule revising the framework that they use to evaluate banks’ records of community reinvestment under the CRA.

On October 24, 2023, the FDIC, the Federal Reserve and the OCC released a final rule revising the framework that they use to evaluate banks’ records of community reinvestment under the CRA, but a federal court subsequently enjoined implementation of that rule such that it did not go into effect.

Under the revised framework, banks with assets of at least $2 billion, such as the Bank, are considered large banks and will have their retail lending, retail services and products, community development financing, and community development services subject to periodic evaluation.

Depending on a large bank’s geographic concentrations of lending, the evaluation of retail lending may include assessment areas in which the bank extends loans but does not operate any deposit-taking facilities, in addition to assessment areas in which the bank has deposit-taking facilities.

The rule became effective April 1, 2024, however, Federal Court indefinitely paused the CRA Final Rule implementation following the ABA lawsuit filed on March 30, 2024.

In July 2025, the OCC, the Board of Governors of the Federal Reserve System and the FDIC issued a joint notice of proposed rulemaking to rescind the 2023 final rule and replace it with the prior CRA regulations (originally adopted in 1995), with certain technical amendments.

Until any final rulemaking is completed, the agencies continue to supervise and examine institutions under the 1995 CRA framework.

CRA Rule 1071, part of the Dodd-Frank Act, requires financial institutions to collect and report data on small business credit applications, particularly from women- and minority-owned businesses.

This rule aims to make small

business lending more accessible, especially for underserved communities.

This rule aims to make small business lending more accessible, especially for under-served communities.

By gathering and reporting data on lending practices, financial institutions can identify disparities and ensure fair treatment for all applicants.

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• Tier 1 institutions (highest volume lenders):

July 18, 2025

• Tier 2 institutions (moderate volume lenders):

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October 1, 2027

These dates reflect the extended compliance deadlines to accommodate the period during which the rule was stayed.

Interest Rate Limitations

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Because required reserves generally must be maintained in the form of vault cash, with a pass-through correspondent bank, or in the institution’s account at a Federal Reserve Bank, the effect of the reserve requirement may be to reduce the amount of an institution’s assets available for lending or investment.

In March 2020, in response to the COVID-19 pandemic, the Federal Reserve reduced all reserve requirement ratios to zero.

In March 2020, in response to

the COVID-19 pandemic, the Federal Reserve reduced all reserve requirement ratios to zero.

The Federal Reserve indicated that it may adjust reserve requirement ratios in the future if conditions warrant.

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As a general matter, FDIC-insured depository institutions and their holding companies are required to maintain minimum capital levels relative to the amount and types of assets they hold.

We are subject to

regulatory capital requirements at the bank level.

Because the Company’s consolidated assets exceeded $3.0 billion as of September 30, 2022, the Company is no longer eligible for the Federal Reserve’s Small Bank Holding Company Policy Statement and is evaluated relative to the capital adequacy standards established by the Federal Reserve.

We are subject to regulatory capital requirements at the bank level and the Company is evaluated relative to the capital adequacy standards established by the Federal Reserve.

The Economic Growth, Regulatory Relief and Consumer Protection Act (the “EGRRCPA”) requires the federal banking agencies to develop a community bank leverage ratio (the “CBLR”) (defined as the ratio of tangible equity capital to average total consolidated assets) for certain banks and holding companies with total consolidated assets of less than $10 billion.

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Brokered Deposits

The FDIA prohibits insured banks from accepting brokered deposits or offering interest rates on any deposits significantly higher than the prevailing rate in the bank’s normal market area or nationally (depending upon where the deposits are solicited) unless it is “well-capitalized,” or it is “adequately capitalized” and receives a waiver from the FDIC.

deposits are solicited) unless it is “well-capitalized,” or it is “adequately capitalized” and receives a waiver from the FDIC.

A bank that is “adequately capitalized” and that accepts brokered deposits under a waiver from the FDIC may not pay an interest rate on any deposit in excess of 75 basis points over certain prevailing market rates.

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In addition, in December 2015, the federal bank agencies issued additional guidance entitled “Statement on Prudent Risk Management for Commercial Real Estate Lending.” Together, these guidelines describe the criteria the agencies will use as indicators to identify institutions potentially exposed to CRE concentration risk.

An institution that has (i) experienced rapid growth in CRE lending, (ii) notable exposure to a specific type of CRE, (iii) total reported loans for construction, land development, and other land representing 100% or more of the institution’s capital, or (iv) total CRE loans representing 300% or more of the institution’s capital, and the outstanding balance of the institutions CRE portfolio has increased by 50% or more in the prior 36 months, may be identified for further supervisory analysis of the level and

nature of its CRE concentration risk.

The Bank’s total non-owner-occupied commercial real estate loans, including loans secured by apartment buildings, investor commercial real estate, and construction and land loans, represented 170.9% and 184.2% of its capital, at December 31, 2025 and 2024, respectively.

The outstanding balance of the Bank’s CRE portfolio has increased by 5.1% and 16.8%, for the years ended December 31, 2024 and 2023, respectively.

The outstanding balance of the Bank’s CRE portfolio has decreased by 0.4% for the year ended December 31, 2025 and it increased by 5.1% for the year ended December 31, 2024.

The Bank maintains enhanced underwriting and monitoring processes and procedures to manage its CRE portfolio.

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Federal banking agency rules require banking organizations to notify their primary federal regulator of significant security incidents within 36 hours of determining that such an incident has occurred as soon as possible and no later than within 36 hours of a significant cybersecurity incident.

In addition, the SEC recently enacted rules, effective as of December 18, 2023, requiring public companies to disclose material cybersecurity incidents that they experience on Form 8-K within four business days of determining that a material cybersecurity incident has occurred and to disclose on annual basis material information regarding their cybersecurity risk management, strategy, and governance.

In addition, the SEC enacted rules, effective as of December 18, 2023, requiring public companies to disclose material cybersecurity incidents that they experience on Form 8-K within four business days of determining that a material cybersecurity incident has occurred and to disclose on annual basis material information regarding their cybersecurity risk management, strategy, and governance.

For further information, see the section titled “ Cybersecurity ” in Part I, Item 1C of this Annual Report on Form 10-K.

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These statutes and related rules and regulations impose requirements and limitations on specified financial transactions and accounts and other relationships intended to guard against money laundering and terrorism financing.

The principal requirements for an insured depository institution include (i) establishment of an anti-money laundering program that includes training and audit components, (ii) establishment of a “know your customer” program involving due diligence to confirm the identities of persons seeking to open accounts and to deny accounts to those persons unable to demonstrate their identities, (iii) the filing of currency

transaction reports for deposits and withdrawals of large amounts of cash, (iv) additional precautions for accounts sought and managed for non-U.S.

persons and (v) verification and certification of money laundering risk with respect to private banking and foreign correspondent banking relationships.

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In particular, the act established (i) requirements for audit committees, including independence, expertise and responsibilities;

(ii) responsibilities regarding financial statements for the chief executive officer and chief financial officer of the reporting company and new requirements for them to certify the accuracy of periodic reports;

(ii) responsibilities regarding financial statements for the chief executive officer and chief financial officer of the reporting company and requirements for them to certify the accuracy of periodic reports;

(iii) standards for auditors and regulation of audits;

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(iv) authorizes the SEC to promulgate rules that would allow shareholders to nominate their own candidates using a company’s proxy materials;

and (v) directs the

federal banking regulators to issue rules prohibiting incentive compensation that encourages inappropriate risks.

and (v) directs the federal banking regulators to issue rules prohibiting incentive compensation that encourages inappropriate risks.

• Other rules and regulations implementing the Dodd-Frank Act that may be relevant to us and the Bank are described or otherwise accounted for in various parts of this “-Regulation and Supervision” section.

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Current Expected Credit Losses Model

The FASB adopted a new accounting standard for U.S Generally Accepted Accounting Principles (“GAAP”) that became effective for us on January 1, 2023.

This standard, referred to as CECL, requires FDIC-insured institutions and their holding companies (banking organizations) to recognize credit losses expected over the life of certain financial assets.

CECL covers a broader range of assets than the current method of recognizing credit losses and generally results in earlier recognition of credit losses.

Upon adoption of CECL, a banking organization must record a one-time adjustment to its credit loss allowances as of the beginning of the fiscal year of adoption equal to the difference, if any, between the amount of credit loss allowances under the current methodology and the amount required under CECL.

For a banking organization, implementation of CECL is generally likely to reduce retained earnings, and to affect other items, in a manner that reduces its regulatory capital.

The Company adopted the Current Expected Credit Losses (“CECL”) accounting standard under U.S.

generally accepted accounting principles (“GAAP”) effective January 1, 2023.

CECL requires banking organizations to recognize an allowance for expected credit losses over the contractual life of certain financial assets measured at amortized cost, including loans and held-to-maturity debt securities, as well as off-balance-sheet credit exposures.

Compared to the prior incurred loss methodology, CECL generally results in earlier recognition of credit losses and requires management to consider historical experience, current conditions, and reasonable and supportable forecasts in estimating expected credit losses.

The adoption of CECL resulted in a one-time cumulative-effect adjustment to the Company’s credit loss allowances and retained earnings as of January 1, 2023.

Following adoption, the allowance for credit losses is updated each reporting period based on changes in portfolio composition, credit quality, economic conditions, and other relevant factors.

The CECL framework continues to affect the level and volatility of the Company’s credit loss allowances and regulatory capital over time.

Consumer Financial Protection Bureau

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The CFPB has examination and primary enforcement authority with respect to depository institutions with more than $10.0 billion in assets.

Smaller institutions, including the Bank, are subject to rules promulgated by the CFPB but continue to be examined and supervised by their primary federal banking agency for compliance with federal consumer protection laws and regulations.

Smaller institutions, including the Bank, are subject to rules promulgated by the CFPB but continue to be examined and supervised by their primary federal banking agency for

compliance with federal consumer protection laws and regulations.

The CFPB also has authority to prevent unfair, deceptive or abusive acts or practices in connection with the offering of consumer financial products.

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Whether or when the agencies will finalize the proposal is uncertain.

Information About Our Executive Officers

The table below provides information about our executive officers.

Ages are as of December 31, 2024.

Name Age Position

Sprink 52 Chief Executive Officer and Director

Hamilton 47 President, CCBX and Director

Queyrouze 63 President, Community Bank and Corporate Credit

Edwards 64 Chief Financial Officer, Corporate Secretary

Stines 54 Chief Risk Officer

The following is a brief discussion of the business and banking background and experience of our executive officers, including their business experience during the last five years.

Sprink serves as our Chief Executive Officer.

Sprink joined the Company in late 2006 as President and Chief Operating Officer and became Chief Executive Officer in 2010.

Sprink began his banking career working for Security Pacific Bank while enrolled at Arizona State University.

He assumed increasing levels of responsibility in the areas of retail operations, consumer and commercial lending and wealth management with Security Pacific Bank and its successor, Bank of America.

He then moved to Centura Bank, where he held management positions in retail operations and corporate finance.

After Centura Bank was acquired, he held senior management positions at Washington Trust Bank and Global Credit Union.

Sprink is active in industry trade groups and is a director and past chairman of the Community Bankers of Washington.

Sprink received a bachelor’s degree from Arizona State University and an M.B.A.

from the University of North Carolina.

Sprink brings to our board of directors leadership experience, significant experience in many facets of the financial services business, and familiarity with our market area.

Sprink has been a member of our board of directors since 2006.

Hamilton serves as President, CCBX.

He joined the Company in 2024.

Most recently, Mr.

Hamilton was co-founder and Chief Executive Officer of ONE (One Finance Inc.), which was acquired by a Walmart-led joint venture in 2022, from January 2019 until August 2023.

Prior to co-founding ONE, he was the founder of Azlo, a digital bank for small businesses, and helped to build out the BBVA Open Platform for sponsor banking services.

A serial entrepreneur, with deep expertise in domestic and international settlement systems and digital platforms, Mr.

Hamilton has held senior leadership roles at Capital One, serving as President of their Merchant Services division from January 2013 until February 2015, Wells Fargo from July 1998 until March 2006 and Verifone from January 2012 until January 2013, in addition to founding and operating multiple companies in the fintech space.

Hamilton is an honors graduate of Oregon

State University, with technical certifications from Wells Fargo’s commercial banking school and various industry groups.

Hamilton is a seasoned financial technology executive and business leader, with more than 25 years of experience in the banking, lending, payments and digital product development industries.

Hamilton has been a member of our board of directors since 2024.

Queyrouze serves as President, Community Bank and Corporate Credit.

He joined the Company in 2022 as President and currently serves as President of the community bank and corporate credit.

Queyrouze was most recently President and Chief Executive Officer of TAB Bank, UT, from 2016 to 2022 and Chief Credit Officer from 2014 to 2016, where he gained experience in managing a community bank and fintech partnerships through BaaS.

Prior to TAB Bank, Mr.

Queyrouze was Senior Vice President Loss Mitigation Manager for Hancock Whitney Bank, from 2009 to 2012.

His career includes a variety of leadership roles at banks ranging from top-ten and regionals to community institutions, and as Chief Operating Officer of a fintech company.

He holds a degree in Accounting from Louisiana State University and is active in his community and banking industry organizations.

Queyrouze has a background with expertise in credit, risk management, and financial technology.

Edwards has served as Executive Vice President and Chief Financial Officer of the Company since 2012.

Edwards is also the Executive Vice President and Chief Financial Officer of the Bank.

Prior to joining the Company and Bank, Mr.

Edwards was a Senior Vice President and Administration Officer at AmericanWest Bank.

Prior to that experience, he was Executive Vice President and Chief Financial Officer at Viking Bank, Vice President and Chief Financial Officer at Rainier Pacific Bank, and President of the Washington Credit Union Share Guaranty Association.

He also was employed in the Farm Credit System for eight years including positions as vice president responsible for administration, budget and policy.

Edwards graduated magna cum laude with a bachelor’s degree in business and concentration in economics from, and completed post-graduate studies in accounting at, Eastern Washington University.

He also received an M.B.A.

from Eastern Washington University.

Stines has served as the Bank’s Chief Risk Officer since January 2020.

From 2013 through 2019, Mr.

Stines was an Executive Director with Ernst and Young LLP in its Regulatory Practices Group assisting large financial institutions with their remediation of enforcement actions, compliance program designs and advising on similar regulatory matters.

Before joining Ernst and Young, Mr.

Stines served as Chief Risk Officer and BSA Officer for Sunwest Bank in California.

Stines has over 20 years of experience working with financial institutions on various legal, regulatory and compliance matters.

Stines holds a BS in Management from the University of Colorado, a Juris Doctor from Seattle University and a Master in Science and Finance from Seattle University.

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.

What changed 10-K

Item 1. Business