Our Company We are a bank holding company headquartered in Los Angeles, California. As of December 31, 2020, deposits accounted for 98.1% of total liabilities. 4 Table of Contents • Expand and Diversify our Commercial Lending. The members of our executive team have been with Open Bank for an average of six years. This commitment is in our annual operating budget each year. 7 Table of Contents Loan Underwriting and Approval. We have loan policies designed to assist us in managing this business risk. Our lending activities are subject to a variety of lending limits imposed by federal law. We provide a variety of loans to meet our customers' needs. The Bank primarily extends SBA loans known as SBA 7(a) loans and SBA 504 loans. Commercial and Industrial Business Loans. We offer unsecured lines of credit and term loans to high net worth individuals. We had no non-performing consumer loans as of December 31, 2020. Banks with which we participate are generally located in California. We offer ATMs and banking by telephone, mail and personal appointment. 3397518) in 2008 with the United States Patent and Trademark Office. Our values are fostered by stewardship, integrity, teamwork, and excellence. CET1 capital is generally defined as common shareholders' equity and retained earnings. OFAC publishes lists of specially designated targets and countries. We are participating as a lender in the PPP. In addition, litigation can be costly, regardless of outcome. Adverse conditions in Asia and elsewhere could adversely affect our business. We believe that the CRE Concentration Guidance is applicable to us. We generally retain the non-guaranteed portions of the SBA loans that we originate. These deposits can and do fluctuate substantially. We did not have other real estate owned ("OREO") as of December 31, 2020. We plan to continue to grow our business organically. Those limitations could affect our overall growth over the long term. These costs materially increase our general and administrative expenses. We are required to comply with these and other anti-money laundering requirements. An investment in our common stock is not an insured deposit. Such limits are also tied to the earnings of our subsidiary. We are an "emerging growth company," as described in the JOBS Act.
