Legal Proceedings
−Removed: In the normal course of business, the Company is involved in various legal claims.
−Removed: The Company has reviewed all legal claims with counsel and has taken into consideration the views of such counsel as to the potential outcome of the claims in determining the accrued loss contingency.
−Removed: The Company had accrued loss contingencies of $40 thousand for certain legal claims at December 31, 2023.
+Added: In the normal course of business, the Company and the Bank are involved in various legal claims.
+Added: The Company has reviewed all legal claims with counsel and has taken into consideration the views of such counsel as to the potential outcome of the claims in determining its accrued loss contingency.
It is reasonably possible the Company may incur losses in addition to the amounts currently accrued.
−Removed: However, at this time, the Company is unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, the Company believes have little to no merit.
−Removed: Management has considered these and other possible loss contingencies and does not expect the amounts to be material to the consolidated financial statements.
−Removed: On August 30, 2021, the Bank identified unusual activity on its network.
−Removed: The Bank responded promptly to disable the activity, investigate its source and monitor the Bank’s network.
−Removed: The Bank subsequently became aware of claims that it had been the target of a ransomware attack.
−Removed: On September 7, 2021, the Bank determined that an external actor had illegally accessed and/or acquired certain data on its network.
−Removed: The Bank worked with third-party forensic investigators to understand the nature and scope of the incident and determine what information may have been accessed and/or acquired and who may have been impacted.
−Removed: The investigation revealed that this incident impacted certain files containing certain Bank customer information.
−Removed: Some of these files contained documents related to loan applications, such as tax returns, Form W-2 information of their employees, and payroll records.
−Removed: The Bank has notified all individuals identified as impacted, consistent with applicable laws.
−Removed: All impacted individuals were offered free Equifax Complete Premier credit monitoring and identify theft protection services.
−Removed: The Bank has notified law enforcement and appropriate authorities of the incident.
−Removed: On December 16, 2021, Plaintiff Min Woo Bae, individually and on behalf of all others similarly situated, filed in the Los Angeles County Superior Court a complaint based on the incident for damages, injunctive relief, and equitable relief, styled Min Woo Bae v.
−Removed: Pacific City Bank , Case Number 21STCV45922 (“the Matter”).
−Removed: During the three months ended September 30, 2023, the Bank agreed to settle this matter in exchange for $700 thousand to the putative class members, including costs of settlement administration, and attorneys’ fees and costs.
−Removed: The Bank received preliminary court approval of the settlement and notice was provided to members of the proposed class during the three months ended September 30, 2023.
−Removed: However, due to the low claims rate by the members of the proposed class, Plaintiff had requested and the Court had agreed to extend the claims deadline for another 45 days.
−Removed: March 21, 2024 is now the new claims deadline.
−Removed: No new final approval hearing date has been set by the Court.
−Removed: The Company expects that the full amount of the final settlement will be covered under the Company’s applicable insurance policies.
+Added: However, at this time, the Company is unable to determine the ultimate outcome of each proceeding or the estimate of the range of additional losses that are reasonably possible.
+Added: There were, however, no legal proceedings pending or known to be contemplated against us that in the opinion of management, would be expected to have a material adverse effect on the financial condition or results of operations of the Company or the Bank at December 31, 2024.
Mine Safety Disclosures
1 unchanged sentence
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.