What changed in this filing

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Item 1. Business

2026-03-16 compared with 2025-03-13 · 34 added, 37 removed, 500 unchanged (12% of the section changed)

3 unchanged sentences

The Bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum amount currently allowable under federal law.

As of December 31, 2024, the Bank is a single operating segment that operates 11 full-service branches in Los Angeles and Orange Counties, California, three full-service branches on the East Coast (Bayside, New York;

and Englewood Cliffs and Palisades Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), and four loan production offices (“LPOs”) located in Los Angeles and Orange Counties, California;

Bellevue, Washington;

and Atlanta, Georgia.

As of December 31, 2025, the Bank is a single operating segment that operates nine full-service branches in Los Angeles and Orange Counties, California, three full-service branches on the East Coast (Bayside, New York;

and Englewood Cliffs and Palisades Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), and one full-service branch in Georgia (Suwanee).

The Bank also has loan originators of primarily SBA loans in Washington.

The Bank offers a broad range of loans, deposits, and other products and services predominantly to small and middle market businesses and individuals.

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Commercial and industrial 5,593 46.3 % 2,272 36.1 %

Loans held-for-investment

$ 6,292 100.0 % $ 5,155 100.0 %

Loans held-for-sale $ 12,077 100.0 % $ 6,292 100.0 %

CRE loans consist of loans secured by commercial real estate properties (e.g., retail shopping centers, industrial/manufacturing properties, multifamily residential properties, office buildings, multi-tenant residential real properties etc.) and construction loans.

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Warehouse lending is a line of credit given to a loan originator.

The funds are used to finance a residential mortgage or CRE loan that a borrower uses to purchase property or refinance an existing loan.

The funds are ultimately used to finance residential mortgages to purchase property or to refinance existing CRE loans.

Commercial term loans (usually five to seven years) normally provide for monthly payments of both principal and interest.

11 unchanged sentences

Residential mortgage loans are typically collateralized by primary residential properties located in the Company’s market areas to enable borrowers to purchase or refinance existing homes.

Other consumer loans portfolio consists of automobile loans, unsecured lines of credit and term loans to high net worth individuals.

The other consumer loans portfolio consists of automobile loans, unsecured lines of credit and term loans to high net worth individuals.

The Company offers adjustable-rate mortgage (“ARM”) loans with the interest rate fixed for the first five or seven years followed by rate adjustments every six months with terms up to 30 years.

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The Bank has attained SBA Preferred Lender status nationwide.

SBA loans are originated through the branch staff, lending officers, LPO managers, marketing officers, and brokers.

SBA loans are originated through the branch staff, lending officers, marketing officers, and brokers.

As of December 31, 2025, CRE SBA and C&I SBA loans totaled $129.4 million (including loans held-for-sale of $6.5 million) and $29.2 million (including loans held-for-sale of $5.6 million), respectively.

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The Company employs conventional marketing initiatives and advertising and in addition leverages its community and board relationships to generate new accounts.

The Company offers deposit products to its loan customers by encouraging, depending on the circumstances and the type of relationship, them to maintain deposit accounts as a condition of granting loans.

To enhance the relationships with customers and to identify and meet their particular needs, each customer is assigned a relationship officer, including SBA loan borrowers.

The Company offers deposit products to its loan customers by encouraging them, depending on the circumstances and the type of relationship, to maintain deposit accounts as a condition of granting loans.

To enhance the relationships with customers and to identify and meet their particular needs, each customer (including SBA loan borrowers) is assigned a relationship officer.

Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis.

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A prepayment penalty is usually imposed for early repayment of these advances.

As of December 31, 2024, the Company had no outstanding FHLB advances and maintained additional borrowing capacity of $722.4 million.

As of December 31, 2025, the Company had overnight FHLB advances of $34.0 million and maintained additional borrowing capacity of $840.6 million.

The Company also maintains overnight federal funds lines with correspondent financial institutions.

The Company had an overnight borrowing of $15.0 million and unused borrowing capacity of $50.0 million at December 31, 2024.

The Company has no outstanding borrowings and unused borrowing capacity of $65.0 million at December 31, 2025.

For additional information, see Note 10 to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

1 unchanged sentence

The Company offers banking products and services that are competitively priced with a focus on convenience and accessibility.

A full suite of online banking solutions is available, which includes access to account balances, online transfers, online bill payment and electronic delivery of customer statements, mobile banking solutions, including remote check deposit and mobile bill pay.

A full suite of online banking solutions is available, which includes access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and mobile banking solutions, including remote check deposit and mobile bill pay.

The Company also offers automated teller machines (“ATMs”) and banking by telephone, mail, personal appointment, debit cards, direct deposit, cashier’s checks, as well as treasury management, wire transfer and automated clearing house (“ACH”) services.

5 unchanged sentences

Market Area and Competition

The Company is headquartered in Los Angeles, California and operates 11 full-service branches in Los Angeles and Orange Counties, California, three full-service branches on the East Coast (Bayside, New York;

and Englewood Cliffs and Palisades Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), and four LPOs located in Los Angeles and Orange Counties, California;

Bellevue, Washington;

and Atlanta, Georgia as of December 31, 2024.

The Company is headquartered in Los Angeles, California and operates nine full-service branches in Los Angeles and Orange Counties, California, three full-service branches on the East Coast (Bayside, New York;

and Englewood Cliffs and Palisades Park, New Jersey), two full-service branches in Texas (Carrollton and Dallas), and one full-service branch in Georgia (Suwanee) as of December 31, 2025.

The Company also has loan originators of primarily SBA loans in Washington.

The Company operates in highly competitive market areas.

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The Company invests in its employees’ future by sponsoring and prioritizing continued education throughout its employee ranks.

The Company encourages its employees to participate in educational activities, which improve or maintain their skills in their current position, as well as to enhance future opportunities at the Company.

The Company encourages its employees to participate in educational activities, which improve or maintain their skills in their current position, as well as enhance future opportunities at the Company.

The Company's employees are notified periodically of available internal course offerings.

1 unchanged sentence

All employees are able to participate in regular educational seminars run by outside parties, including but not limited to the American Bankers Association and Bankers Compliance Group.

In order to develop a workforce that aligns with the Company’s corporate values, it regularly sponsors local community events so that its employees can better integrate themselves in communities.

The Company believes that employees’ well-being and personal and professional development is fostered by outreach to the communities it serves.

The Company’s employees’ desire for active community involvement enables the Company to sponsor a number of local community events and initiatives, including hosting an annual PCB scholarship that provides financial assistance to local low-to-moderate income communities, conducting financial literacy training to seniors in affordable housing facilities, and participating in the Volunteer Income Tax Assistance annually to assist the community in free tax preparation.

As part of the Company’s human capital strategy, we seek to foster a workforce that reflects our corporate values and is actively engaged in the communities we serve.

The Company believes that employee well‑being and professional development are strengthened when employees participate in meaningful community outreach activities.

To support this objective, the Company regularly sponsors community outreach programs that provide employees with opportunities to build local connections and contribute to community development initiatives.

Our employees’ strong interest in civic involvement enables the Company to support a range of recurring community programs, including:

• Annual PCB Scholarship Program, which provides financial assistance to graduating high school students from low‑to‑moderate‑income families;

• Financial literacy training delivered to seniors residing in affordable housing facilities;

• Participation in the Volunteer Income Tax Assistance program, through which employees assist eligible individuals with free tax preparation services.

These initiatives support our commitment to community reinvestment and contribute to the personal and professional development of our employees, while promoting stronger relationships within the communities in which we operate.

Supervision and Regulation

2 unchanged sentences

As a result, the growth and earnings performance of the Company and its subsidiaries 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 California Department of Financial Protection and Innovation (“CDFPI”), the Federal Reserve System (“Federal Reserve”), the FDIC, and the Bureau of Consumer Financial Protection (“CFPB”).

Furthermore, tax laws administered by the Internal Revenue Service (“IRS”) and state taxing authorities, accounting rules developed by the Financial Accounting Standards Board (“FASB”), securities laws administered by the SEC and state securities authorities, Bank Secrecy Act (“BSA”) and Anti-Money Laundering (“AML”) laws enforced by the U.S.

Treasury, and mortgage related rules, including with respect to loan securitization and servicing by the U.S.

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Historically, the Company has operated under the Federal Reserve’s Small Bank Holding Company Policy Statement, which exempts bank holding companies with total consolidated assets of less than $3.0 billion from the Federal Reserve’s risk-based- and leverage consolidated capital requirements.

Because the Company’s total consolidated assets exceeded the $3.0 billion as of December 31, 2024, the Company is now subject to Federal Reserve’s consolidated capital requirements separate and in addition to those of the Bank.

The Company’s total consolidated assets exceeded the $3.0 billion threshold as of December 31, 2024, at which time the Company became subject to Federal Reserve’s consolidated capital requirements separate and in addition to those of the Bank.

The Basel III Capital Rules establish minimum risk-based capital requirements (Tier 1 capital, common equity Tier 1 capital (“CET1”) and total capital) and leverage capital requirements, as well as guidelines that define components of the calculation of capital and the level of risk associated with various types of assets.

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or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.

If the Company’s fails to adhere to these policies, the Federal Reserve could find that the Company is operating in an unsafe and unsound manner.

If the Company fails to adhere to these policies, the Federal Reserve could find that the Company is operating in an unsafe and unsound manner.

In addition, under the Basel III Capital Rules, institutions must maintain a capital conservation buffer of 2.5% in CET1 in order to avoid restrictions on their ability to pay dividends or repurchase shares.

66 unchanged sentences

and comprehensive internal controls.

A banking organization that experiences a computer-security incident to notify its primary Federal regulator of the occurrence of an event that rises to the level of a “notification incident” as soon as possible and no later than 36 hours after the banking organization has determined that a notification incident has occurred.

A banking organization that experiences a computer-security incident must notify its primary Federal regulator of the occurrence of an event that rises to the level of a “notification incident” as soon as possible and no later than 36 hours after the banking organization has determined that a notification incident has occurred.

Community Reinvestment Act Requirements

6 unchanged sentences

The Bank received a “satisfactory” rating on its most recent CRA performance evaluation, dated July 29, 2024.

On October 24, 2024, the federal banking agencies issued a final rule to strengthen and modernize the CRA regulations.

Under the final rule, banks with assets of at least $600 million as of December 31 in both of the prior two calendar years and less than $2 billion as of December 31 in either of the prior two calendar years will be an “intermediate bank,” and banks with assets of at least $2 billion as of December 31 in both of the prior two calendar years will be a “large bank.” The agencies will evaluate bank classified as large banks, such as the Bank, under four performance tests:

the Retail Lending Test, the Retail Services and Products Test, the Community Development Financing Test, and the Community Development Services Test.

The applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements will be applicable on January 1, 2027.

Anti-Money Laundering and Office of Foreign Assets Control Regulation

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”), is designed to deny terrorists and criminals the ability to obtain access to the U.S.

financial system and has significant implications for depository institutions, brokers, dealers and other businesses involved in the transfer of money.

Anti-Money Laundering

The BSA, as amended by, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”), and its implementing regulations and other laws and regulations that impose anti-money laundering obligations require financial institutions among other duties, implement and maintain an effective anti-money laundering and countering the financing of terrorism (“AML/CFT”) compliance program and file reports, such as suspicious activity reports and currency transaction reports.

The Patriot Act mandates financial services companies to have policies and procedures with respect to measures designed to address any or all of the following matters:

5 unchanged sentences

and (vi) cooperation between financial institutions and law enforcement authorities.

Regulatory authorities routinely examine financial institutions for compliance with these obligations, and failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required.

Regulatory authorities have imposed cease and desist orders and civil money penalties against institutions found to be violating these obligations.

Regulatory authorities routinely examine financial institutions for compliance with these obligations, and failure of a financial institution to maintain and implement adequate AML/CFT programs, or to comply with all of the relevant laws or regulations, could have serious legal and reputational consequences for the institution, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions or new branch offices when regulatory approval is required or to prohibit such transactions even if approval is not required.

Regulatory authorities may also impose cease and desist orders and civil money penalties against institutions found to be violating these obligations.

Treasury’s Office of Foreign Assets Control (“OFAC”), administers and enforces economic and trade sanctions against targeted foreign countries and regimes under authority of various laws, including designated foreign countries, nationals and others.

14 unchanged sentences

These laws include, among others, laws regarding unfair and deceptive acts and practices and usury laws, as well as the following consumer protection statutes:

Truth in Lending Act, Truth in Savings Act, Electronic Fund Transfer Act, Expedited Funds Availability Act, Equal Credit Opportunity Act, Fair and Accurate Credit Transactions Act, Fair Housing Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Gramm-Leach-Bliley Act, Home Mortgage Disclosure Act, Right to Financial Privacy Act, Servicemembers Civil Relief Act, Military Lending Act and Real Estate Settlement Procedures Act.

Truth in Lending Act, Truth in Savings Act, Electronic Fund Transfer Act, Expedited Funds Availability Act, Equal Credit Opportunity Act, Fair and Accurate Credit Transactions Act, Fair Housing Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Flood Disaster Protection Act, Gramm-Leach-Bliley Act, Home Mortgage Disclosure Act, Right to Financial Privacy Act, Servicemembers Civil Relief Act, Military Lending Act and Real Estate Settlement Procedures Act.

Many states and local jurisdictions have consumer protection laws analogous, and in addition, to those listed above.

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The federal bank regulatory agencies have broad enforcement powers.

If as federal banking agency determines that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of depository institution’s or its bank holding company’s operations are unsatisfactory or that it or its management was in violation of any law or regulation, the agency would have the authority to take a number of different remedial actions as it deems appropriate under the circumstances.

If a federal banking agency determines that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of depository institution’s or its bank holding company’s operations are unsatisfactory or that it or its management was in violation of any law or regulation, the agency would have the authority to take a number of different remedial actions as it deems appropriate under the circumstances.

These actions include the power to enjoin any “unsafe or unsound” banking practices;

26 unchanged sentences

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